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Your older brother is concerned more about investment safety than about investment performance. For example, he has invested $120,000 in safe 10 year corporate AAA
Your older brother is concerned more about investment safety than about investment performance. For example, he has invested $120,000 in safe 10 year corporate AAA bounds yielding an average of 12% per year, payable each year. His effective income tax rate is 31%, and inflation will average 4% per year. How much will his $120,000 be worth in 10 years in today's purchasing power after income taxes and inflation are taken into account?
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