Future Income Tax

Question:

I ran the model and the level of income taxes seem low for the amount of income each year in the future.

With a  gross incomes of around $80,000, it shows about $10,000 in taxes for example.

Answer:

Income taxes may seem low but remember these are "future dollars", and the income mix may be from capital withdrawals from a non-registered account, investment income which is taxed a lower rates if it's from realized capital gains and dividends.

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Written by RetireWare / Equisoft