The Real Rate Of Return
When you save or invest, it’s important to have a good rate of return.
But what’s the real rate of return?
In other words, what do you really get?
Example 1: | Example 2: |
If you save $100.00 | If you save $100.00 |
At 3% interest +3.00 | At 5% interest +5.00 |
Pay Tax at 25% – .75 | Pay Tax at 25% – 1.25 |
(Combined Fed.& State) | (Combined Fed.& State) |
Net after Tax $102.25 | Net after Tax $103.75 |
Inflation at 3.5 % -3.50 | Inflation at 3.5% -3.50 |
Actual return $ 98.75 | Actual return $100.25 |
(After tax and inflation) | (After tax and inflation) |
You Lose! |
You must get about 5% or more in interest to beat taxes and inflation. |
Let Us Help You!!!