The Real Rate Of Return

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!!!

How can we help you?

Contact us at the MLifeFinance office or submit a business inquiry online.