is often better than a dollar earned.

  • If your marginal tax rate is 32.5% of every dollar earned, you need to earn $1.48 before tax to have $1 in the hand. 
  • If your marginal tax rate is 37% of every dollar earned, you need to earn $1.59 before tax to have $1 in the hand.
  • If your marginal tax rate is 45% of every dollar earned, you need to earn $1.82 before tax to have $1 in the hand.

If you save a dollar – well, that’s a dollar in the hand.

Sonnie Bailey

Sonnie is an Authorised Financial Adviser (AFA) and former lawyer with experience in the financial services and trustee industries. Sonnie operates Fairhaven Wealth (www.fairhavenwealth.co.nz).

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