A Taxing Exercise

Current Marginal Tax Rate 35%

Retirement Marginal Tax Rate 25%

Corporate Bond Fund Money Market Fund

Pretax initial investment 10,000 10,000
Years to retirement 30 30
Annual total return 8.50% 3.50%
Annual fees (passive) 0.30% 0.05%
Annual fees (active) 1.50% 0.05%

Year 30 Portfolio Values (passive):

Roth IRA $69,140.29 $17,981.59
Traditional IRA $79,777.25 $20,747.99
Taxable account $30,865.68 $12,643.20

Year 30 Portfolio Values (active):

Roth IRA $49,479.66 $17,981.59
Traditional IRA $57,091.91 $20,747.99
Taxable account $24,696.45 $12,643.20
Exercise

Municipal Bond Fund Large Stock Fund Small Stock Fund

10,000 10,000 10,000
30 30 30
6.50% 11.00% 13.00%
0.15% 0.20% 0.25%
1.00% 1.50% 1.75%

$41,213.38 $140,963.34 $237,908.45

$47,553.89 $162,650.00 $274,509.75
$21,871.40 $49,757.87 $70,837.49

$32,395.68 $98,932.03 $159,189.33

$37,379.63 $114,152.35 $183,679.99
$18,644.97 $39,226.67 $54,003.60