Articles for Financial Advisors

Next 5-Year After-Tax Returns

Next 5-Year After-Tax Returns

Figures shown below are after-tax (35% rate) and after-inflation cumulative returns after five years; the table looks are various interest rate and inflation scenarios and does not factor in the reinvestment of coupon payments (interest paid). The 1.5% column represents the current 10-year Treasury yield as of mid-2013. The 5-year return figures are cumulative total return projections, not annualized. The figures are adjusted for different levels of inflation (far left column) and assume the investor is in a 35% tax bracket.

 

5-Year Cumulative Total Real After-Tax Returns

 

 

10-Year U.S. Treasury Yield

CPI Rate

1%

1.5%

2%

3%

4%

1%

1%

-3%

-7%

-16%

-24%

2%

-2%

-6%

-10%

-18%

-26%

3%

-5%

-9%

-13%

-21%

-29%

4%

-7%

-11%

-15%

-23%

-31%

 

 

 

Previous Post
Trust Dismantling

For Advisors by Advisors. Browse all Programs.