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Thanks for the detailed reply Acme. I will answer the questions you raised.

1) I don't have the list in front of me now, but there is no Vanguard with low fees. They all charge 1.3+% fees. I choose two, one of them is NBSRX.

2) About 45% tax - I am in California and these are the numbers for me. I went to paycheck calculator and adjusted the deduction until my net gain lowered by the same amount. And I have no discipline issues when it comes to investments.

3) Math in my own investment - You are right the math is not perfect. I had to start somewhere. I will look into factoring dividend gains and taxing and taxation on reallocation.

If I add 0.15 tax on gains every year the number I get is:
(i used a small program to calculate this:
total = 0
30.times do |year| gain = total * 0.08; gain = gain - (gain*0.15); total = total + 7200 + gain; end

Now the difference is 200k which is more substantial.

4) Tax percent on retirement - I went to paycheckcity and entered 27996 yearly income and that's the number I got. And for the sake of simplicity I am making the calculations in today numbers for both my investment and the 401k.

I like the idea of splitting the investment.
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