This is the initial assumptions screen for the main Tax Master presentation. The contributions are always made at the beginning of the year. The program includes an annual contribution at the beginning of the first year. Therefore, if you want a specific amount as the initial contribution, deduct the annual contribution from that initial contribution you desire. For example, if you want to start with exactly $100,000 and add $5,000 each year. Enter an initial balance of $95,000 and annual contributions of $5,000. |
Since most people are familiar with the rewards of compounding their interest but are not so familiar with the tax ramifications associated with the growth on the interest earned, the following discussion is designed to uncover some of the hidden costs. Let's enter your data and shine some light on this problem. Opportunity Cost may be a term you are not familiar with. Basically it represents the interest you could have earned on a given amount had you been able to avoid losing or transferring it away. A dollar paid unnecessarily not only cost the dollar but what the dollar could have earned had you not given it away. |
No math is presented on this screen. |