This presentation conveys how taxable accounts work and two approaches to paying the taxes. The presentation assumes an account generates ordinary income subject to annual income taxation. |
Let’s talk about a few of the basics when it comes to saving money inside a taxable account. First, to fund the account, income passes through the tax filter and is taxed in the year it is earned. Then, the after-tax money flows up the future lifestyle tube to be saved in your tank. For each year that the account generates taxable growth, taxes are paid annually. |
No math presented on this screen. |