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Missed Fortune – Taxed-As-Earned & Tax-Deferred Versus Tax-Free

Posted on | November 12, 2009

A dollar doubling every period for 20 periods will grow to $1,048,000 if it is growing tax-free.

But if it’s taxed-as-earned, assuming a 25% marginal tax bracket, that money will only amount to $72,000. And in a 33% tax bracket, it would only be worth $27,000.

If that money grows on a tax-deferred basis, it will only be worth $666,000 when you withdraw.

It’s critical that you harness the power of compounding interest on a tax-free basis.

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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Comments

One Response to “Missed Fortune – Taxed-As-Earned & Tax-Deferred Versus Tax-Free”

  1. Patricia Havey
    February 10th, 2010 @ 1:27 pm

    I understand the concept and would like to know how to find out what specific products are offered to execute this
    strategy.

    I will be out of the country for one week, but look forward to a reply when I return. Thank you.

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