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<< 1. The $2,000, which will accumulate to $482,665.36 in 30 years at 12%,

2. The $560, which will accumulate to $135,146.30 in 30 years at 12% compounded.>>

You're using the same rate of return before and after tax.
That is an error. The second account will have a lower
rate of return, since you will pay tax yearly on dividends
and realized capital gains.

Assume 1/3 of growth is from dividends, taxed at 28%
and the rest is long term capital gains realized every
2 years (About right for BTD ?). This gives an average
tax rate of 16%. This reduces the return on the after tax
account to 10.08% and the value after 30 years to

So at retirement you have
1) $482,665.36 in the IRA
2) $93,523.10 on which you've already paid taxes.

It's best to defer taxes for as long as possible, so
spend $64618.65 per year from taxed acount first.
This lasts 1.64 years, at which point you have
$581,383.19 in the IRA. This lasts another 13.25
years at 28% or 22 years at 15%.

In total the money lasts 14.9 years at the higher
rate or 23.7 years at 15%. This is quite close to
the 20 years for the ROTH.


Now at retirement you have
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