The value of your investment can be affected by both taxes and inflation. Use this calculator to estimate the year-by-year and total effects of taxes and inflation on your investment. This calculator assumes that taxes are paid on investment earnings each year. Retirement plan earnings may be tax-deferred or, for qualified Roth account withdrawals, tax-free.
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
The calculator deducts income taxes from earnings on an annual basis using the income tax rates that you specify. This will tend to understate the performance of the taxable account in circumstances where long-term capital gains and qualified dividends, which are currently taxed at lower rates than ordinary income, are a component of investment returns, as is the case for investments with significant equity holdings.
This calculator was developed by KJE Computer Solutions, which is not affiliated with American Funds. It is intended for use in making a rough estimate of the effects of taxes and inflation on your investments. We do not guarantee the accuracy of the results or their relevance to your particular circumstances. We encourage you to seek the assistance of your financial professional.