Quote:
Originally posted by Yakk
Bones, do you have your numbers right?
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My numbers were a simplified calculation that just showed the value of $10,000 invested at 10% for 10 years taxed and untaxed on the earnings. I didn't get into taxing the original $10,000 nor the effect of paying tax upon "maturity" of the investment. I didn't check your math, but it seems accurate.
The bottom line is, you generally end up with more going with a tax deferred option comparable to a taxable investment. (And don't forget, most taxpayers are at a lower rate when they retire - assuming you are taxed at marginal rates, not fixed ones.)