Deciding Which Fund Gets The Tax Protection
The table below shows the total aftertax return* on $20,000 invested evenly between a stock and bond fund on Mar. 31, 1976, and liquidated 20 years later STOCK BOND FUND IN TAXABLE BOND FUND IN TAX FUND ACCT. & STOCK FUND IN DEFERRED ACCT. & STOCK CATEGORY TAX-DEFERRED ACCT. FUND IN TAXABLE IN ACCT. GROWTH $142,400 $128,800 GROWTH & 118,600 108,600 INCOME EQUITY 138,600 119,300 INCOME SMALL 158,900 141,800 COMPANY FOREIGN 109,700 106,300 BALANCED 115,100 105,400 * Assumes a capital-gains rate of 28%. Bond fund is based on Morningstar's all-taxable bond fund. DATA: T. ROWE PRICE ASSOCIATES INC., MORNINGSTAR INC.
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.