Tax Deferral Calculator
Yearly Investment    
Current Tax Bracket    
Length of Investment  Years   
Interest Rate    
Comparison of Annual Contributions to Both Ordinary and Deferred Investments
Ordinary Investment Deferred Investment
Yearly Investment $23,000.00            $23,000.00
Less current income tax paid at 25.00% $5,750.00            --------
Funds available to invest after taxes $17,250.00            $23,000.00
Value after 20 years at 7.00% $616,442.00            $1,008,899.00
Less taxes due on withdrawal --------            $252,224.75
Money you keep after 20 years $616,442.00            $756,674.25
» After 20 years, by depositing $23,000.00 annually into a deferred investment at 7.00% you will save $756,674.25. This is $140,232.25 more than you could save in a standard savings account.