I find it Ironic that when you put the two words “The” and “IRS” together it spells “Theirs”. Imagine for just a moment that I was one of the smartest guys in the world…haha Imagine that if you gave me one dollar to invest, I was able to double your money. Now let’s say that I had the inside track like that for 20 years and I was able to double your money every year for 20 years. How much money would you have in your investment account after 20 years? Yup a little over a million Georges. Now how much would you still have if you were taxed at a 22% bracket.
| 1 | 2 | 2 | 1.00 | 0.22 | 0.22 | 1.78 | 1 | 2 | 2 | |
| 1.78 | 2 | 3.56 | 1.78 | 0.22 | 0.39 | 3.17 | 2 | 2 | 4 | |
| 3.1684 | 2 | 6.3368 | 3.17 | 0.22 | 0.70 | 5.64 | 4 | 2 | 8 | |
| 5.639752 | 2 | 11.279504 | 5.64 | 0.22 | 1.24 | 10.04 | 8 | 2 | 16 | |
| 10.03875856 | 2 | 20.07751712 | 10.04 | 0.22 | 2.21 | 17.87 | 16 | 2 | 32 | |
| 17.86899024 | 2 | 35.73798047 | 17.87 | 0.22 | 3.93 | 31.81 | 32 | 2 | 64 | |
| 31.80680262 | 2 | 63.61360524 | 31.81 | 0.22 | 7.00 | 56.62 | 64 | 2 | 128 | |
| 56.61610867 | 2 | 113.2322173 | 56.62 | 0.22 | 12.46 | 100.78 | 128 | 2 | 256 | |
| 100.7766734 | 2 | 201.5533469 | 100.78 | 0.22 | 22.17 | 179.38 | 256 | 2 | 512 | |
| 179.3824787 | 2 | 358.7649574 | 179.38 | 0.22 | 39.46 | 319.30 | 512 | 2 | 1024 | |
| 319.3008121 | 2 | 638.6016242 | 319.30 | 0.22 | 70.25 | 568.36 | 1024 | 2 | 2048 | |
| 568.3554455 | 2 | 1136.710891 | 568.36 | 0.22 | 125.04 | 1011.67 | 2048 | 2 | 4096 | |
| 1011.672693 | 2 | 2023.345386 | 1,011.67 | 0.22 | 222.57 | 1800.78 | 4096 | 2 | 8192 | |
| 1800.777394 | 2 | 3601.554787 | 1,800.78 | 0.22 | 396.17 | 3205.38 | 8192 | 2 | 16384 | |
| 3205.383761 | 2 | 6410.767521 | 3,205.38 | 0.22 | 705.18 | 5705.58 | 16384 | 2 | 32768 | |
| 5705.583094 | 2 | 11411.16619 | 5,705.58 | 0.22 | 1255.23 | 10155.94 | 32768 | 2 | 65536 | |
| 10155.93791 | 2 | 20311.87581 | 10,155.94 | 0.22 | 2234.31 | 18077.57 | 65536 | 2 | 131072 | |
| 18077.56947 | 2 | 36155.13895 | 18,077.57 | 0.22 | 3977.07 | 32178.07 | 131072 | 2 | 262144 | |
| 32178.07366 | 2 | 64356.14733 | 32,178.07 | 0.22 | 7079.18 | 57276.97 | 262144 | 2 | 524288 | |
| 57276.97112 | 2 | 114553.9422 | 57,276.97 | 0.22 | 12600.93 | 101953.01 | 524288 | 2 | 1048576 |
Just over 100,000 does that surprise you as much as it does me? Taxes will play as your financial nemesis if you do not understand them. One of the best ways to save on taxes is to own a small business. There are some financial vehicles that can grow without taxation, can disperse without taxation, and even pass to future generations without taxation. In one of our future interviews with financial gurus we will be asking a C.P.A. about strategic tax questions surrounding business taxation. You can also always reach out to us.
