Wednesday, May 11, 2016
Fly High with Freedom Equity Group
Freedom Equity Group
Leaders with Vision Helping People with DREAMS!
How Math can Sink Your 401K
The Math that's not Taught in School.
Not knowing this simple math can cost you many thousands of dollars in YOUR pocket
Question
How much do you need to withdraw to net $100,000 if you are in a 30% tax bracket?
Most people answer $130,000 or 70% of $130,000 is $91,000 and it's $9,000 short.
The formula is $100,000 / (1-tax rate)……… $100,00/(1-.3) $100,000/.7 = $142,857 or $12,857 more than most think
So to Net $100,000 you need to withdraw $142,857
And it gets worse listen to the
Audio below
Not knowing this simple math can cost you many thousands of dollars in YOUR pocket
Question
How much do you need to withdraw to net $100,000 if you are in a 30% tax bracket?
Most people answer $130,000 or 70% of $130,000 is $91,000 and it's $9,000 short.
The formula is $100,000 / (1-tax rate)……… $100,00/(1-.3) $100,000/.7 = $142,857 or $12,857 more than most think
So to Net $100,000 you need to withdraw $142,857
And it gets worse listen to the
Audio below
Subscribe to:
Posts (Atom)