Can I retire at age 40 with 512,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $512,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$42,280$41,904$41,536$41,178$40,828$39,824
2 years$20,931$20,541$20,163$19,797$19,442$18,437
3 years$13,815$13,424$13,047$12,684$12,335$11,360
4 years$10,258$9,868$9,495$9,138$8,797$7,860
5 years$8,125$7,737$7,368$7,019$6,687$5,791
6 years$6,703$6,318$5,955$5,613$5,292$4,436
7 years$5,687$5,305$4,948$4,615$4,303$3,489
8 years$4,926$4,548$4,197$3,871$3,570$2,797
9 years$4,334$3,960$3,615$3,298$3,007$2,273
10 years$3,861$3,490$3,151$2,842$2,562$1,868
11 years$3,475$3,107$2,774$2,474$2,203$1,548
12 years$3,152$2,789$2,462$2,170$1,909$1,291
13 years$2,880$2,520$2,200$1,916$1,665$1,083
14 years$2,647$2,291$1,977$1,701$1,459$912
15 years$2,445$2,093$1,785$1,517$1,285$771
16 years$2,268$1,920$1,618$1,358$1,136$654
17 years$2,113$1,768$1,472$1,220$1,007$556
18 years$1,975$1,634$1,344$1,100$895$473
19 years$1,851$1,514$1,230$994$798$404
20 years$1,740$1,407$1,129$900$713$345
21 years$1,640$1,311$1,039$817$638$295
22 years$1,549$1,224$957$743$572$253
23 years$1,466$1,144$884$676$513$217
24 years$1,390$1,072$817$617$461$186
25 years$1,320$1,006$757$563$415$160
26 years$1,256$946$702$515$374$137
27 years$1,196$890$652$471$337$118
28 years$1,141$839$606$432$304$101
29 years$1,090$791$564$396$275$87
30 years$1,042$747$525$363$248$75
31 years$998$706$490$334$224$65
32 years$956$668$457$307$203$56
33 years$917$633$427$282$184$48
34 years$880$600$399$260$166$41
35 years$846$569$373$239$151$36
36 years$813$540$349$220$136$31
37 years$782$513$326$203$124$26
38 years$753$487$306$187$112$23
39 years$726$463$286$172$102$20
40 years$700$441$268$159$92$17
41 years$675$420$252$147$84$15
42 years$652$400$236$135$76$13
43 years$630$381$222$125$69$11
44 years$608$363$208$115$63$9
45 years$588$346$195$107$57$8
46 years$569$330$183$98$52$7
47 years$550$315$172$91$47$6
48 years$533$301$162$84$43$5
49 years$516$287$152$78$39$4
50 years$500$274$143$72$35$4

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $512,000, adding $2,018 every year, while hoping to spend $50,915 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 72/11/17 Blend
39$512,000$512,000$512,000$512,000
40$566,306$539,170$531,234$604,703
41$569,896$511,416$494,857$602,713
42$572,145$480,595$455,555$594,181
43$572,864$446,505$413,176$583,521
44$571,841$408,928$367,562$570,512
45$568,840$367,637$318,547$554,913
46$563,602$322,391$265,958$536,460
47$555,836$272,936$209,615$514,861
48$545,223$219,001$149,329$489,798
49$531,408$160,304$84,903$460,923
50$513,996$96,543$16,131$427,852
51$492,552$27,402$0$390,167
52$466,594$0$0$357,792
53$435,588$0$0$329,377
54$398,943$0$0$299,791
55$356,007$0$0$265,196
56$306,057$0$0$225,020
57$248,295$0$0$178,628
58$181,838$0$0$125,319
59$105,712$0$0$64,320
60$18,838$0$0$0
61$0$0$0$0
62$0$0$0$0
63$0$0$0$0
64$0$0$0$0
65$0$0$0$0
66$0$0$0$0
67$0$0$0$0
68$0$0$0$0
69$0$0$0$0
70$0$0$0$0
71$0$0$0$0
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0