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Subject:  Re: 401(k) and foolishness revisited Date:  4/21/1998  1:03 AM
Author:  maxb Number:  2952 of 78166

<<Let's say I'm in a 28% federal tax bracket, I get no or have reached the maximum match from my employer, and I deposit $100 into my tax-deferred account where I expect to earn 10% on my deposit. What rate of return do I have to get in an after-tax investment to equal what I'm getting in that plan? Well, by using the formula, I get:

Ra = Rp / (1 - TR)