The Deferred Model investment outperforms the Current Model investment if interest rates and tax rates are constant over time because the interest on the Deferred Model investment grows tax free until withdrawal.

Question

Quizplus · Accepted Answer

The interest on the Deferred Model investment grows tax-free until withdrawal, allowing for greater compounding over time and potentially higher overall returns compared to the Current Model investment.

The Deferred Model Investment Outperforms the Current Model Investment If