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Author: efficiency Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 88953  
Subject: Calculators Working? Date: 4/27/2004 3:52 PM
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I was trying to use the calculator under Roth IRA called "Which will provide the most retirement income?" My inputs were as follows 3000 contribution, option 2, 33.8 % Tax before Retirement, 15 % after, current age 27, withdrawing at 60, 90 at death, $20000 at death, 8% rate of return on IRA and Other investments.

Basically, I was going back and forth between entering 3000 and 3500 as my contribution to see which limit the calculator was assuming. The weird thing that happens is that the lump sum at retirement is less for 3500 than for 3000. This is also true when selecting option 3. What is the problem here? Is this the right place to inquire about calculator problems?

Also, it says that for option 2 that it takes the amount of tax that you would have to pay to contribute the net amount and assumes that in the traditional IRA example, this amount is invested in a Taxable Savings Account. This is a fine assumption, but I don't believe that the earnings on that Taxable account is reflected in the results. Rather, the Taxable Account figure shows the result of the total contribution being placed in a taxable account. Without this other number, how can the types of accounts be accurately compared?

Thanks,
efficiency
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