Present Value Comparison Spreadsheet
Budget: $250 – $750 USD
I want to be able to compare the present value of three different cash flows resulting from 2 different uses of $2 million(amount flexible please). $1 million is in a tax deferred traditional ira earning 4.5%(flexible please). $1 million is in a taxable account earning 3.5% pretax(amount flexible please):
Scenario 1: convert the traditional ira to a roth ira in year 1 and pay the taxes on the conversion from the taxable account. Use the remaining taxable account and earnings to make $100,000 annual donations for as long as possible. If the taxable account is used up then continue make 100k/year donations from the roth through year 10. The donations from the taxable account are deductible above the applicable standard deduction.
Scenario 2: use the $1 million taxable to donate to a donor advised fund. The contribution will be fully deductible. Make 100k/year donations from the donor advised fund for 10 years.
-compare values and pv after 10 years.
-I will provide all tax assumptions(flexible please) and discount rate(flexible please)
-In the first scenario I would like to change the tax rates for deduction of the donations after the first 5 years
Scenario 1: convert the traditional ira to a roth ira in year 1 and pay the taxes on the conversion from the taxable account. Use the remaining taxable account and earnings to make $100,000 annual donations for as long as possible. If the taxable account is used up then continue make 100k/year donations from the roth through year 10. The donations from the taxable account are deductible above the applicable standard deduction.
Scenario 2: use the $1 million taxable to donate to a donor advised fund. The contribution will be fully deductible. Make 100k/year donations from the donor advised fund for 10 years.
-compare values and pv after 10 years.
-I will provide all tax assumptions(flexible please) and discount rate(flexible please)
-In the first scenario I would like to change the tax rates for deduction of the donations after the first 5 years