Results
Lifetime Tax Burden And Financial Independence Date
Yearly Tax Burden
—
Of the money that goes to you is taken across all taxes.
Lifetime Wealth Loss
—
—
Timeline to Financial Independence
Year
—
Age
—
is when you could retire or live off of your investments.
See How Different Tax Rates Affect These Numbers
Adjust the overall slider, or tweak individual tax sliders.
State
Defaults drive sales + property + state income estimate
(override available below).
Hypothetical Tax Burden
Actual Rates = 100%
100%
Individual tax sliders
If you change any individual tax, the master slider becomes
inactive until you move it again.
Retirement Timeline Details
Adjust the retirement spending target used to compute the 4% rule
portfolio goal.
Retirement spending target
Used to compute the 4% rule target.
4% rule target today: —
The “4% rule” is a rule-of-thumb for retirement
withdrawals: start by withdrawing ~4% of a balanced
portfolio in year 1 (then adjust for inflation), aiming
for a high chance the portfolio lasts decades.
Reference:
Trinity study
and
4% rule overview.
Target portfolio:
$0
Tax Burden Details
Flat annual burden vs compounded loss by retirement date (in
today’s dollars).
| Category | Flat annual burden (today) | Compounded loss by retirement (today) |
|---|---|---|
| Total | $0 | $0 |
Total lost wealth potential:
$0
Potential wealth: $0
With taxes: $0
Income & payroll
$0
▾
Federal income tax is computed from IRS brackets after the
standard deduction. Payroll includes Social Security + Medicare.
Employer payroll is included as a burden “above” your contract
gross income.
Estimated yearly federal income tax burden
$0
Estimated yearly payroll tax burden (employee)
$0
Estimated yearly payroll tax burden (employer)
$0
Derived
Estimated annual savings (after modeled taxes):
$0
Savings rate:
—
State & local
$0
▾
State income is modeled as an effective rate applied to gross
income (defaults from the selected state; override here). Sales
uses an average state+local combined rate for the selected state.
State income tax effective rate (override)
0.00%
Estimated yearly state income tax burden
$0
Auto-loaded sales tax (avg state + local)
—:
—
Estimated yearly sales tax burden
$0
Sales-taxable share of spend
Gas, utilities, telecom, fees, etc
Modeled as a percent of yearly spend.
Estimated yearly excise/fees burden
$0
Property & housing
$0
▾
Property tax is estimated from an assumed home value (income ×
multiple) while you’re an owner. Real estate transaction fees are
annualized across ownership years.
Assumed age you become a homeowner
32
Home value multiple of income
4.5×
Property tax rate
0.68%
Default is set from state; override here.
Lifetime real estate transactions
2
Real estate transaction fee rate
1.50%
Estimated yearly property tax burden
$0
Estimated yearly real estate transaction fees (annualized)
$0
Investment drag & inflation
$0
▾
Portfolio growth uses your return assumptions, split across
equities vs cash. A taxable-equity drag approximates capital gains
+ dividend taxes. Cash “inflation erosion” is modeled from
inflation vs cash yield.
Equities allocation
90%
Tax-advantaged share (of total net worth)
70%
Nominal market return (equities)
7.0%
Inflation
3.0%
Cash yield
2.0%
Taxable-equity tax drag
0.60%
Estimated yearly investment tax drag (today)
$0
Estimated yearly inflation erosion on cash (today)
$0
Assumed life expectancy
90
Years modeled (to retirement):
—
Time value of money
$0
▾
“Compounded loss” is the difference between your wealth at the
retirement date under your current taxes vs a counterfactual
scenario.
Total compounded loss by retirement (all burdens)
$0