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bartsd: "I'm a government employee, age 35, who is being offered a $30k bonus (taxable) 5 years prior to retirement at 20 years of service.

. . .

My plan so far, consists of dropping the money in to a mutual fund with the expectation of a 5% return rate. With the bonus taxable, I'm expecting somewhere around $22k. At the end of 20 years, with a 5% return rate, I estimate that the amount will then be $28,078."


You amy want to check (or explain) your math:

When I run 22k compounded at 4% per annum (I assume a 20% tax rate on your returns of 5%), I get a twenty toal of sligthly more than $48,000 (not $28,078).

Regards, JAFO
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