Taxable vs. Tax Deferred vs. Tax-Free Investment Calculator

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Taxable vs. Tax Deferred vs. Tax-Free Investment Calculator

When you invest money, there are three main types to consider: taxable, tax-deferred, and tax-free.

Taxable investments mean you pay taxes on the money you make each year. This includes things like earnings from stocks or interest from a CD.

Tax-deferred is when you don’t pay taxes now, but you will when you take the money out later, like with a 401(k) or traditional IRA. It’s a “pay taxes later” deal.

Tax-free investments are the ones where you don’t have to pay taxes on the money you earn, even when you take it out. Roth IRAs and some municipal bonds fit here. It’s like never having to worry about taxes on this money.

Choosing between them really depends on what makes the most sense for you, considering your goals and how you feel about dealing with taxes now versus later. This calculator can show their differences and allow you to make the financial decisions that work for you.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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