This hypothetical example assumes annual investments of $2,400 with an 8% annual return. The investor in the taxable account is in the 28% tax bracket. This example is not intended to represent any actual investment. The value of your investment and return may vary.  The return on the taxable investment may be more favorable due to the lower maximum tax rates on capital gains and dividends, thereby reducing the difference in performance between the accounts shown.


For illustrative purposes only.