Found a startup with $40k consulting income, convert $50k/yr in the window

Found a startup with $40k consulting income, convert $50k/yr in the window ends $782,117 behind stay employed, 3% raises, after tax.

• Lifetime tax, in today's dollars: $58,770 less.
• All of it under the assumptions listed below, which the reader can change.

What the tax change is made of

• Tax on dividends, interest and portfolio gains: −$37,273
• Federal income tax: −$33,643
• Self-employment tax: +$12,146

These add back to the total change; they are the same taxes the projection sums into the headline, discounted the same way.

Not financial or tax advice.

What this assumes

Every figure below depends on these. Change one and the answer changes.

Horizon

30 yearsHow many years the projection runs.

Nominal return

5%Assumed annual growth before inflation.

Inflation

2.5%Grows spending, and indexes brackets between published years.

Discount rate

3%Used to present-value lifetime tax — the headline metric.

Future tax law

Current law continuesLeft on current law, the projection assumes today’s brackets last the whole horizon — itself a forecast, not a neutral choice.

Year by year

Run this with your own numbers →