 | Yearly $2,000 of income invested for a period of 30 years at an 8%
average annual return. |
| 28% income tax and 20% capital gains tax (paid yearly for Basic
Savings). |
| Lump sum distribution made at retirement and all taxes paid in full.
|
| Company match contributions are 25% of employee contributions and are
fully vested. |
| This analysis does NOT rely on the common assumption that income taxes
in retirement will be lower than current income taxes. If it did, the
difference between the tax-deferred investments and the taxable
investments would be even greater. |
