$559,000 is what a dollar would have been worth invested in stocks throughout the entire history of the U.S. stock market.
$24,000 is the exact same number as above, minus taxes (assuming you’re paying the highest tax rates).
The difference is incredible… And it’s all due to taxes. (The numbers are from the book Stocks for The Long Run 2nd Edition, by Jeremy Siegel.)
The numbers show that, not only do taxes take money out of your pocket now, they rob you of the power to “compound” your wealth.
So if you could simply defer your taxes (to let the compounding work for you), or even better if you could significantly reduce your tax burden (through smart financial planning), you will be dramatically better off.
The Fastest Way to Improve Your Returns
by Dr. Steve Sjuggerud
9/8/06 True Wealth