Three years on the venture, then stop working
Three years on the venture, then stop working ends $3.73M behind keep working, no venture, after tax.
- Lifetime tax, in today's dollars: $431,797 less.
- All of it under the assumptions listed below, which the reader can change.
What the tax change is made of
- Federal income tax: −$348,428
- Tax on dividends, interest and portfolio gains: −$83,369
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.
Lifetime tax (present value)$13,477
Terminal after-tax wealth$623,835
Years in IRMAA0
What this assumes
Every figure below depends on these. Change one and the answer changes.
- Horizon
- 12 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.
Other assumptions (4)
- Dividend yield
- 1.2%
- Interest yield
- 0.8%
- Business cash return
- 2%
- Income growth
- 0%
Year by year
| Year | Age | Federal tax | Net worth |
|---|---|---|---|
| 0 | 52 | $0 | $1,899,820 |
| 1 | 53 | $0 | $1,582,431 |
| 2 | 54 | $0 | $1,246,942 |
| 3 | 55 | $0 | $1,207,523 |
| 4 | 56 | $1,725 | $1,161,777 |
| 5 | 57 | $1,769 | $1,111,091 |
| 6 | 58 | $1,813 | $1,055,151 |
| 7 | 59 | $1,858 | $993,627 |
| 8 | 60 | $1,905 | $926,170 |
| 9 | 61 | $1,952 | $852,411 |
| 10 | 62 | $2,001 | $771,962 |
| 11 | 63 | $2,051 | $684,415 |