Wednesday, May 11, 2016

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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

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