It appears that by saving in a tax-deferred vehicle you would accumulate $3,975,444 ($3,223,083 after taxes on the earnings) vs. $2,716,115 in a taxable savings account. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable vs. Tax-Deferred Savings' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='' /><category label='4' /><category label='' /><category label='' /><category label='7' /><category label='' /><category label='' /><category label='10' /><category label='' /><category label='' /><category label='13' /><category label='' /><category label='' /><category label='16' /><category label='' /><category label='' /><category label='19' /><category label='' /><category label='' /><category label='22' /><category label='' /><category label='' /><category label='25' /><category label='' /><category label='' /><category label='28' /><category label='' /><category label='' /></categories><dataset seriesName='Taxable'><set value='40280.0' /><set value='76617.0' /><set value='115134.0' /><set value='155962.0' /><set value='199240.0' /><set value='245114.0' /><set value='293741.0' /><set value='345285.0' /><set value='399922.0' /><set value='457838.0' /><set value='519228.0' /><set value='584302.0' /><set value='653280.0' /><set value='726396.0' /><set value='803900.0' /><set value='886054.0' /><set value='973138.0' /><set value='1065446.0' /><set value='1163293.0' /><set value='1267010.0' /><set value='1376951.0' /><set value='1493488.0' /><set value='1617017.0' /><set value='1747958.0' /><set value='1886755.0' /><set value='2033881.0' /><set value='2189834.0' /><set value='2355144.0' /><set value='2530372.0' /><set value='2716115.0' /></dataset><dataset seriesName='Tax-Deferred'><set value='41040.0' /><set value='78883.0' /><set value='119754.0' /><set value='163894.0' /><set value='211566.0' /><set value='263051.0' /><set value='318655.0' /><set value='378707.0' /><set value='443564.0' /><set value='513609.0' /><set value='589258.0' /><set value='670959.0' /><set value='759195.0' /><set value='854491.0' /><set value='957410.0' /><set value='1068563.0' /><set value='1188608.0' /><set value='1318257.0' /><set value='1458277.0' /><set value='1609499.0' /><set value='1772819.0' /><set value='1949205.0' /><set value='2139701.0' /><set value='2345437.0' /><set value='2567632.0' /><set value='2807603.0' /><set value='3066771.0' /><set value='3346673.0' /><set value='3648966.0' /><set value='3975444.0' /></dataset></chart>"); // --> </script> <table class='pure-table pure-table-bordered' role='grid'><tr><th colspan="2"></th><th colspan="4">Taxable</th><th colspan="3">Tax-Deferred</th></tr><tr><th scope="col">Year</th><th scope="col">Savings @ 0.00%</th><th scope="col">Beginning Balance</th><th scope="col">Return @ 8.00%</th><th scope="col">Taxes @ 25.00%</th><th scope="col">Ending Balance</th><th scope="col">Beginning Balance</th><th scope="col">Return @ 8.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$32,000</td><td>$6,000</td><td>$3,040</td><td>$760</td><td>$40,280</td><td>$6,000</td><td>$3,040</td><td>$41,040</td></td></tr><tr><td role="rowheader" scope="row">2</td><td>32,000</td><td>40,280</td><td>5,782</td><td>1,446</td><td>76,617</td><td>41,040</td><td>5,843</td><td>78,883</td></td></tr><tr><td role="rowheader" scope="row">3</td><td>32,000</td><td>76,617</td><td>8,689</td><td>2,172</td><td>115,134</td><td>78,883</td><td>8,871</td><td>119,754</td></td></tr><tr><td role="rowheader" scope="row">4</td><td>32,000</td><td>115,134</td><td>11,771</td><td>2,943</td><td>155,962</td><td>119,754</td><td>12,140</td><td>163,894</td></td></tr><tr><td role="rowheader" scope="row">5</td><td>32,000</td><td>155,962</td><td>15,037</td><td>3,759</td><td>199,240</td><td>163,894</td><td>15,672</td><td>211,566</td></td></tr><tr><td role="rowheader" scope="row">6</td><td>32,000</td><td>199,240</td><td>18,499</td><td>4,625</td><td>245,114</td><td>211,566</td><td>19,485</td><td>263,051</td></td></tr><tr><td role="rowheader" scope="row">7</td><td>32,000</td><td>245,114</td><td>22,169</td><td>5,542</td><td>293,741</td><td>263,051</td><td>23,604</td><td>318,655</td></td></tr><tr><td role="rowheader" scope="row">8</td><td>32,000</td><td>293,741</td><td>26,059</td><td>6,515</td><td>345,285</td><td>318,655</td><td>28,052</td><td>378,707</td></td></tr><tr><td role="rowheader" scope="row">9</td><td>32,000</td><td>345,285</td><td>30,183</td><td>7,546</td><td>399,922</td><td>378,707</td><td>32,857</td><td>443,564</td></td></tr><tr><td role="rowheader" scope="row">10</td><td>32,000</td><td>399,922</td><td>34,554</td><td>8,638</td><td>457,838</td><td>443,564</td><td>38,045</td><td>513,609</td></td></tr><tr><td role="rowheader" scope="row">11</td><td>32,000</td><td>457,838</td><td>39,187</td><td>9,797</td><td>519,228</td><td>513,609</td><td>43,649</td><td>589,258</td></td></tr><tr><td role="rowheader" scope="row">12</td><td>32,000</td><td>519,228</td><td>44,098</td><td>11,025</td><td>584,302</td><td>589,258</td><td>49,701</td><td>670,959</td></td></tr><tr><td role="rowheader" scope="row">13</td><td>32,000</td><td>584,302</td><td>49,304</td><td>12,326</td><td>653,280</td><td>670,959</td><td>56,237</td><td>759,195</td></td></tr><tr><td role="rowheader" scope="row">14</td><td>32,000</td><td>653,280</td><td>54,822</td><td>13,706</td><td>726,396</td><td>759,195</td><td>63,296</td><td>854,491</td></td></tr><tr><td role="rowheader" scope="row">15</td><td>32,000</td><td>726,396</td><td>60,672</td><td>15,168</td><td>803,900</td><td>854,491</td><td>70,919</td><td>957,410</td></td></tr><tr><td role="rowheader" scope="row">16</td><td>32,000</td><td>803,900</td><td>66,872</td><td>16,718</td><td>886,054</td><td>957,410</td><td>79,153</td><td>1,068,563</td></td></tr><tr><td role="rowheader" scope="row">17</td><td>32,000</td><td>886,054</td><td>73,444</td><td>18,361</td><td>973,138</td><td>1,068,563</td><td>88,045</td><td>1,188,608</td></td></tr><tr><td role="rowheader" scope="row">18</td><td>32,000</td><td>973,138</td><td>80,411</td><td>20,103</td><td>1,065,446</td><td>1,188,608</td><td>97,649</td><td>1,318,257</td></td></tr><tr><td role="rowheader" scope="row">19</td><td>32,000</td><td>1,065,446</td><td>87,796</td><td>21,949</td><td>1,163,293</td><td>1,318,257</td><td>108,021</td><td>1,458,277</td></td></tr><tr><td role="rowheader" scope="row">20</td><td>32,000</td><td>1,163,293</td><td>95,623</td><td>23,906</td><td>1,267,010</td><td>1,458,277</td><td>119,222</td><td>1,609,499</td></td></tr><tr><td role="rowheader" scope="row">21</td><td>32,000</td><td>1,267,010</td><td>103,921</td><td>25,980</td><td>1,376,951</td><td>1,609,499</td><td>131,320</td><td>1,772,819</td></td></tr><tr><td role="rowheader" scope="row">22</td><td>32,000</td><td>1,376,951</td><td>112,716</td><td>28,179</td><td>1,493,488</td><td>1,772,819</td><td>144,386</td><td>1,949,205</td></td></tr><tr><td role="rowheader" scope="row">23</td><td>32,000</td><td>1,493,488</td><td>122,039</td><td>30,510</td><td>1,617,017</td><td>1,949,205</td><td>158,496</td><td>2,139,701</td></td></tr><tr><td role="rowheader" scope="row">24</td><td>32,000</td><td>1,617,017</td><td>131,921</td><td>32,980</td><td>1,747,958</td><td>2,139,701</td><td>173,736</td><td>2,345,437</td></td></tr><tr><td role="rowheader" scope="row">25</td><td>32,000</td><td>1,747,958</td><td>142,397</td><td>35,599</td><td>1,886,755</td><td>2,345,437</td><td>190,195</td><td>2,567,632</td></td></tr><tr><td role="rowheader" scope="row">26</td><td>32,000</td><td>1,886,755</td><td>153,500</td><td>38,375</td><td>2,033,881</td><td>2,567,632</td><td>207,971</td><td>2,807,603</td></td></tr><tr><td role="rowheader" scope="row">27</td><td>32,000</td><td>2,033,881</td><td>165,270</td><td>41,318</td><td>2,189,834</td><td>2,807,603</td><td>227,168</td><td>3,066,771</td></td></tr><tr><td role="rowheader" scope="row">28</td><td>32,000</td><td>2,189,834</td><td>177,747</td><td>44,437</td><td>2,355,144</td><td>3,066,771</td><td>247,902</td><td>3,346,673</td></td></tr><tr><td role="rowheader" scope="row">29</td><td>32,000</td><td>2,355,144</td><td>190,971</td><td>47,743</td><td>2,530,372</td><td>3,346,673</td><td>270,294</td><td>3,648,966</td></td></tr><tr><td role="rowheader" scope="row">30</td><td>32,000</td><td>2,530,372</td><td>204,990</td><td>51,247</td><td>2,716,115</td><td>3,648,966</td><td>294,477</td><td>3,975,444</td></td></tr></table>