Numbers Don’t Lie, They Just Muddle

I see a bunch of confusing, twisted numbers in hundreds (if not thousands) of colorful, convincing 401(k), 403(b), IRA and TSA brochures – and on some websites. These sources usually portray – and wrongfully profess - that all things being equal using pre-tax contributions and deferring taxes will result in a bigger nest egg. Therefore, those who use such accounts will end up with higher net