rate of return vs. taxes

I played around with the numbers a bit this morning and realized that my rate of return (what I earn on my investments) is more critical to my monthly income then my tax rate.

What I used was a 3% return and varying inflation rates.  If I don’t beat inflation I have less income but still enough.  And if I assume varying tax rates (15-25%) I have enough.

What made the biggest difference is the rate of return.  If I can increase it even 1% it has the greatest impact on my projected income.  Lesson learned.


About Bonnie B

avid reader, computer geek, genealogist, technical writer
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