This calculator presents a hypothetical example that is used for illustrative purposes only. It is not representative of any specific investment or combination of investments. This calculator provides projections based on certain assumptions. It is not intended to provide specific investment advice. Taxable account assumes earnings are taxed as ordinary income. Lower maximum rates on capital gains and dividends would make the taxable accounts returns more favorable when compared with the tax-deferred account. The types of securities and strategies illustrated may not be suitable for everyone. A program built on continuous or systematic investing does not ensure a profit and does not protect against loss in declining markets Some tax-deferred products have charges and expenses, which may reduce the overall performance. Certain investments that are free from federal income taxes may be subject to state and local taxes. Also, the alternative minimum tax may apply. Fees and other expenses were not considered in this illustration. Withdrawals from a tax-deferred program are subject to ordinary income taxes. If a withdrawal is taken before age 59½, a 10% federal tax penalty may apply. Individuals should consider their time frame and income tax brackets when evaluating a financial instrument. The rate of return on investments will vary over time, particularly for longer-term investments. Investments that offer the potential for high returns also carry a high degree of risk. Actual returns will fluctuate.