Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next
Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5085  
Subject: Re: I'm a FIRE wannabe... Date: 7/26/2007 11:05 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
can save $1000 pretax, or $700 post-tax, and either way I'll earn 10% compounded while I hold the investment. After 30 years, I'll have $17,449 in the pretax account, or $12,214 in the after-tax account. My understanding is that I'll have to pay cap gains taxes on the after-tax account when I cash out from that account, which would leave me with $9771 cash from that investment. For my pretax account to give me less than that, the tax rate upon withdrawal would have to be 44%, right?

Couple of things. You'll owe earned income taxes on your tax differed accounts when you start with drawls. Assuming no other penalties such as early with drawl.

The main point though. I seriously doubt that 30 years from now we'll be playing by the same tax rules. The best thing you can do is plan like you will be but make changes along the way as the rules change.

JLC
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement