Originally Posted by
sheriff
I agree that there is some simplicity to the math.
Invest $100 at a low-ish rate vs invest $65 at whatever rate you pretend you're going to get for perpetuity. Then multiply by size of $$'s and years to go..
Don't forget to subtract income tax from the $100 and all gains at withdrawal. The $65 investment won't be subject to income tax. If invested in a tax efficient vehicle (VOO or BRK.B comes to mind) you just pay LTCG on the gains. Still simple math, but there are a few more steps.
Bonus Level
-Never pay taxes because you only access the money tax free via a low interest margin loan instead of a sale. Your assets get a stepped up basis at death and your heirs don't pay income tax on mandatory withdrawals from the MBCBP.