Less Capital Gains Tax

Capital Gains Tax.

Finally in our review we would need to include any capital gains to get a true picture of this strategy.

Future Value of an Ideal Investment = FV(Total Rate of Return, Years of Accumulation, Annual Contribution, Initial Balance, Contributions at Beginning of Period)

Amount Invested = Initial Balance + sum of contributions

Capital Gains Tax = End of Illustration Capital Gains Growth * Capital Gains tax Rate

Opportunity Cost of Term Premiums = Sum of Cumulative Annual Term Premium Paid * Investment Total Rate of Return

Term Premiums = sum of term premiums paid

Opportunity Cost of Ordinary Taxes = Sum of Cumulative Annual Ordinary Taxes Paid * Investment Total Rate of Return

Ordinary Income Tax = Sum of Annual Taxable Growth * Ordinary Tax Rate

Total less expenses = Future Value of an Ideal Investment - Amount Invested - Ordinary Income Tax - OC of Ordinary Taxes - Term Premiums - Opportunity Cost of Term Premiums - Capital Gains Tax.

A year-by-year illustration of this solution is displayed in worksheet form by clicking the Documentation button.