Obviously, there has been a lot of hullabaloo going on around here with regards to the MBCBP and just what exactly it means for your retirement. Specifically, which was better...saving on taxes now and getting a lower return, or taking the hit on taxes and getting a potentially better return over the long run. Well, I wanted to see what the actual numbers were, so I put together a spreadsheet to compare them.
I am making no guarantees on the accuracy of the calculations, and I am certainly not going to say this will apply to your own specific situation. However, I think I did the calculations right, and I think it provides a good primer on what the MBCBP offers versus just taking the money and investing it on your own.
I will make updates to the calculations and features as the days and weeks go on, so keep checking back for the most current version. If you find something glaringly wrong, please PM me and I'll look into it.
https://www.dropbox.com/s/34pll180is...v1.0.xlsx?dl=0
Instructions:
- Click the link and click "No thanks, continue to view"
- This is a read only copy, so to make your own calculations, download the file on the top right via "Direct download". You may have to click "No thanks, continue to download" again.
- Once saved, open and click "Enable Editing".
- Change the yellow boxed items as desired to fit your own situation and assumptions.