A Taxing Exercise Calculate the future values of your portfolio for each scenario. Your adjustment for taxes will depend on the investment vehicle. HINT: For the taxable account, adjust for taxes by adjusting the rate of return. Current Marginal Tax Rate 35% 25% Retirement Marginal Tax Rate Corporate Bond Fund Pretax initial investment Money Market Fund 10,000 30 3.50% 10,000 30 8.50% Municipal Bond Fund Large Stock Fund 10,000 30 Years to retirement 10,000 30 11.00% Annual total return 6.50% Annual fees (passive) 0.30% 0.05% 0.15% 0.20% Annual fees (active) 1.50% 0.05% 1.00% 1.50% Year 30 Portfolio Values (passive): Roth IRA Traditional IRA Taxable account Year 30 Portfolio Values (active): Roth IRA Traditional IRA Taxable account Small Stock Fund 10,000 30 13.00% 0.25% 1.75%