Bill of Rights and Rights to Bills

San Francisco Chamber of CommerceNovember 15, 2010

Power of Compounding

“The most powerful force in the universe is compounding”

Albert Einstein (1879-1955)

Penny Power (1 to 15)

1 $0.02

2 $0.04

3 $0.08

4 $0.16

5 $0.32

6 $0.64

7 $1.28

8 $2.56

9 $5.12

10 $10.24

11 $20.48

12 $40.96

13 $81.92

14 $163.84

15 $327.68

Penny Power (15 to 30)

How to benefit from the Power of Compounding

Traditional IRA vs. Taxable account (years 1 to 15)

Traditional IRA vs. Taxable account (years 15 to 30)

GIVE or TAKE

Roth IRA vs. Traditional IRA (years 30 to 44)

Roth IRA vs. Traditional IRA (years 45 to 60)

Value in expert advice

Summary of Savings

1. IRA vs. Taxable Account = $110k tax savings2. Roth IRA vs. Traditional IRA ending balance = $3.5m

difference3. Roth IRA vs. Traditional IRA = $226k tax savings

Independent and Trusted Advisors