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|
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Ordinary Investment
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Deferred Investment
|
|
Yearly Investment
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$23,000.00
|
$23,000.00
|
 |
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Less current income tax paid at 25.00%
|
$5,750.00
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--------
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Funds available to invest after taxes
|
$17,250.00
|
$23,000.00
|
|
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Value after 20 years at 7.00%
|
$616,442.00
|
$1,008,899.00
|
|
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Less taxes due on withdrawal
|
--------
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$252,224.75
|
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Money you keep after 20 years
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$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.
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