Can I retire at age 40 with 589,000?

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 $589,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%14.7%
1 years$48,639$48,206$47,783$47,371$46,968$46,057
2 years$24,079$23,630$23,196$22,774$22,366$21,452
3 years$15,893$15,443$15,009$14,592$14,190$13,301
4 years$11,801$11,352$10,923$10,513$10,120$9,264
5 years$9,346$8,900$8,477$8,075$7,693$6,872
6 years$7,711$7,268$6,850$6,457$6,087$5,301
7 years$6,543$6,103$5,693$5,309$4,951$4,200
8 years$5,667$5,232$4,828$4,454$4,107$3,392
9 years$4,986$4,555$4,158$3,793$3,459$2,779
10 years$4,442$4,015$3,625$3,270$2,947$2,302
11 years$3,997$3,574$3,192$2,846$2,535$1,923
12 years$3,627$3,208$2,832$2,496$2,196$1,618
13 years$3,313$2,899$2,531$2,204$1,915$1,368
14 years$3,045$2,635$2,274$1,956$1,679$1,163
15 years$2,813$2,407$2,053$1,745$1,478$992
16 years$2,609$2,209$1,861$1,562$1,306$849
17 years$2,430$2,034$1,694$1,404$1,158$728
18 years$2,272$1,880$1,546$1,265$1,030$626
19 years$2,130$1,742$1,415$1,143$918$540
20 years$2,002$1,619$1,299$1,035$820$466
21 years$1,886$1,508$1,195$939$734$403
22 years$1,782$1,408$1,101$854$658$348
23 years$1,686$1,316$1,017$778$590$302
24 years$1,599$1,233$940$710$531$262
25 years$1,519$1,158$871$648$478$227
26 years$1,445$1,088$808$592$430$197
27 years$1,376$1,024$750$542$388$171
28 years$1,313$965$697$497$350$149
29 years$1,254$910$649$456$316$129
30 years$1,199$860$604$418$286$112
31 years$1,148$813$563$384$258$98
32 years$1,100$769$526$353$234$85
33 years$1,055$728$491$325$211$74
34 years$1,013$690$459$299$191$65
35 years$973$655$429$275$173$56
36 years$935$621$401$253$157$49
37 years$900$590$375$233$142$43
38 years$867$561$352$215$129$37
39 years$835$533$329$198$117$32
40 years$805$507$309$183$106$28
41 years$777$483$290$169$96$25
42 years$750$460$272$156$87$21
43 years$724$438$255$144$79$19
44 years$700$418$239$133$72$16
45 years$677$398$225$123$65$14
46 years$654$380$211$113$59$12
47 years$633$363$198$105$54$11
48 years$613$346$186$97$49$9
49 years$594$331$175$89$44$8
50 years$575$316$165$83$40$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $589,000, adding $6,574 every year, while hoping to spend $31,356 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: 34/44/22 Blend
39$589,000$589,000$589,000$589,000
40$655,859$624,642$615,513$673,565
41$689,394$621,887$602,770$684,514
42$725,299$617,946$588,549$692,982
43$763,782$612,728$572,768$701,473
44$805,072$606,136$555,340$710,009
45$849,420$598,067$536,175$718,617
46$897,102$588,414$515,178$727,329
47$948,421$577,060$492,250$736,182
48$1,003,708$563,884$467,289$745,220
49$1,063,329$548,757$440,186$754,497
50$1,127,684$531,542$410,827$764,074
51$1,197,214$512,094$379,096$774,023
52$1,272,403$490,260$344,869$784,426
53$1,353,783$465,877$308,017$795,379
54$1,441,939$438,776$268,406$806,991
55$1,537,514$408,773$225,895$819,387
56$1,641,216$375,678$180,338$832,712
57$1,753,822$339,288$131,581$847,127
58$1,876,187$299,389$79,465$862,819
59$2,009,253$255,754$23,822$879,998
60$2,154,055$208,144$0$898,902
61$2,311,733$156,307$0$928,146
62$2,483,540$99,976$0$966,199
63$2,670,855$38,869$0$1,007,847
64$2,875,197$0$0$1,053,524
65$3,098,238$0$0$1,116,932
66$3,341,816$0$0$1,206,812
67$3,607,957$0$0$1,305,103
68$3,898,891$0$0$1,412,638
69$4,217,073$0$0$1,530,336
70$4,565,204$0$0$1,659,208
71$4,946,262$0$0$1,800,367
72$5,363,522$0$0$1,955,040
73$5,820,595$0$0$2,124,578
74$6,321,454$0$0$2,310,466
75$6,870,476$0$0$2,514,345
76$7,472,481$0$0$2,738,018
77$8,132,780$0$0$2,983,473
78$8,857,219$0$0$3,252,899
79$9,652,240$0$0$3,548,707
80$10,524,938$0$0$3,873,554
81$11,483,129$0$0$4,230,366
82$12,535,422$0$0$4,622,367
83$13,691,300$0$0$5,053,108
84$14,961,212$0$0$5,526,501
85$16,356,667$0$0$6,046,856
86$17,890,345$0$0$6,618,923
87$19,576,215$0$0$7,247,931
88$21,429,667$0$0$7,939,645
89$23,467,656$0$0$8,700,416
90$25,708,864$0$0$9,537,240
91$28,173,871$0$0$10,457,825
92$30,885,353$0$0$11,470,665
93$33,868,297$0$0$12,585,118
94$37,150,228$0$0$13,811,495
95$40,761,478$0$0$15,161,158
96$44,735,467$0$0$16,646,625
97$49,109,017$0$0$18,281,688
98$53,922,700$0$0$20,081,547
99$59,221,223$0$0$22,062,948
100$65,053,845$0$0$24,244,344