Planning

Tax-deferred growth

Two piles, same starting cash, same example return. One gets taxed every year. The other waits and gets taxed once at the end. Cartoon math — not your 1040.

20
22%
Illustration only. Not a bracket and not tax advice.
$10,000.00
7.0%
Example rate. Not a forecast or a product.

Two example piles

Gap (deferred minus taxable): $0.00

Taxed each year

$0.00

Deferred, then taxed

$0.00

Takeaway: In this simple model, waiting to pay the example tax can leave a bigger pile because more of the money stays in the game longer.

This is educational, not advice. Example rates and taxes are illustrations. Real accounts, markets, and tax rules can look different — sometimes a lot. No number on this page is a recommendation.

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