Result
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You will have a total of
in all of your investments at the end of this period. Based on your answers, your best overall rate of return will be in
.
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Real after-tax returns, by investment type: |
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Taxable savings | |
Investments | |
Tax-deferred investments | |
Tax-free investments |
Taxable savings: After , you will have
$
in your savings and taxable investments. The real rate of return for these holdings will be
over this period.
Stocks and mutual funds: You will have
in your investments. The profits on these are not taxed (except dividends, which are taxed annually) until you withdraw the holdings, and would be assessed at the capital gains rate. Remember, your original investment was already subject to tax, based on your marginal tax rate. The real rate of return for these holdings will be
over this period.
Tax-deferred investments: You will have
in your tax-deferred investments. These are not taxed until you withdraw them. The real rate of return has been adjusted to reflect the fact that you are investing pre-tax dollars. The real rate of return for these holdings will be
over this period.
Tax-free investments: You will have
in your tax-free investments. The real rate of return for these holdings will be
over this period.
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