28:null 29:["$","title",null,{"children":"IRA Tax stuff | Matt Russell | Observable"}] 2e:T7d4,valueOf1 = { let data = data1; let ymax = Math.max(...data.map(d => d.value)); let ymin = Math.min(...data.map(d => d.value)); let verticalLineFromRate = (rate, label) => { return { data: {values: [{"value": rate, "label": label}]}, mark: {type: "rule", color: "black"}, encoding: { x: {field: "value", type: "quantitative"}, text: {field: "label", type: "nominal"} } } }; let textForLineFromRate = (rate, label) => { return { // Place text for current tax rate vertical line data: {values: [{"value": rate, "label": label}]}, mark: {type: "text", align: "left", dx: 5, dy: -80}, encoding: { x: {field: "value", type: "quantitative"}, text: {field: "label", type: "nominal"} } } }; return vegalite({ width: 800, height: 300, autosize: "fit", title: "Value of $1 pre-tax invested for 40 yrs, using different methods", layer: [ verticalLineFromRate(currentTaxRate/100, "current tax rate"), textForLineFromRate(currentTaxRate/100, "current tax rate"), verticalLineFromRate(avgInvestmentReturnRate/100, "investment return"), textForLineFromRate(avgInvestmentReturnRate/100, "investment return"), verticalLineFromRate(longTermCapGainsRate/100, "cap gains"), textForLineFromRate(longTermCapGainsRate/100, "cap gains"), { data: {values: data}, mark: {type: "line", interpolate: "linear"}, encoding: { x: { field: "retirement_tax_rate", type: "quantitative", axis: {title: "retirement tax rate", format: ".0%"} }, y: { field: "value", type: "quantitative", axis: {title: "value of $1 invested for 40 yrs", format: "($,.1f"}, scale: {domain: [ymin * 0.8,ymax + 1]}, }, color: { field: "name", "type": "nominal" } } } ] }) }2f:T881,valueOfMaxContribution = { let data = data2; let ymax = Math.max(...data.map(d => d.value)); let ymin = Math.min(...data.map(d => d.value)); let verticalLineFromRate = (rate, label) => { return { data: {values: [{"value": rate, "label": label}]}, mark: {type: "rule", color: "black"}, encoding: { x: {field: "value", type: "quantitative"}, text: {field: "label", type: "nominal"} } } }; let textForLineFromRate = (rate, label) => { return { // Place text for current tax rate vertical line data: {values: [{"value": rate, "label": label}]}, mark: {type: "text", align: "left", dx: 5, dy: -80}, encoding: { x: {field: "value", type: "quantitative"}, text: {field: "label", type: "nominal"} } } }; return vegalite({ width: 800, height: 300, autosize: "fit", title: `Value of the maximum pre-tax Roth contribution ($${contribution_cap} post-tax = $${(contribution_cap / ( 1 - currentTaxRate / 100)).toFixed(0)} pre-tax) invested`, layer: [ verticalLineFromRate(currentTaxRate/100, "current tax rate"), textForLineFromRate(currentTaxRate/100, "current tax rate"), verticalLineFromRate(avgInvestmentReturnRate/100, "investment return"), textForLineFromRate(avgInvestmentReturnRate/100, "investment return"), verticalLineFromRate(longTermCapGainsRate/100, "cap gains"), textForLineFromRate(longTermCapGainsRate/100, "cap gains"), { data: {values: data}, mark: {type: "line", interpolate: "linear"}, encoding: { x: { field: "retirement_tax_rate", type: "quantitative", axis: {title: "retirement tax rate", format: ".0%"} }, y: { field: "value", type: "quantitative", axis: {title: `value of $${(contribution_cap / ( 1 - currentTaxRate / 100)).toFixed(0)} invested for 40 yrs`, format: "($,.0f"}, scale: {domain: [ymin * 0.9,ymax * 1.1]}, }, color: { field: "name", "type": "nominal" } } } ] }) }30:[] 2c:{"id":"c4f76c9d02362593","slug":"ira-tax-stuff","title":"IRA Tax stuff","thumbnail":"97aa2ac0538d4f289b4258ee3bb375d33afb2ef75b92762a9e0269f5955a21e1","access_level":"public","create_time":"$D2018-10-20T17:30:30.799Z","update_time":"$D2018-11-08T23:10:48.888Z","view_time":null,"first_public_time":"$D2018-10-20T17:50:10.949Z","has_unpublished_edits":null,"fork":false,"stars":1,"starred":false,"owner":{"type":"team","id":"daa2ceb495af0d02","login":"russelldmatt","name":"Matt Russell","avatar_url":"https://avatars-next.observableusercontent.com/58e4695811bb91f8703e809e4ba2293faf27ca60dded2221c1cb81c04b14a46e","tier":"starter_2024"},"version":296,"publish_version":296,"role":null,"authored":false,"authors":[{"type":"individual","id":"83fe0b7bdc59eef6","login":"russelldmatt","name":"Matt Russell","avatar_url":"https://avatars-next.observableusercontent.com/58e4695811bb91f8703e809e4ba2293faf27ca60dded2221c1cb81c04b14a46e","tier":null}],"members":[{"type":"individual","id":"83fe0b7bdc59eef6","login":"russelldmatt","name":"Matt Russell","avatar_url":"https://avatars-next.observableusercontent.com/58e4695811bb91f8703e809e4ba2293faf27ca60dded2221c1cb81c04b14a46e","tier":null,"role":"editor"}],"comments":[],"custom_thumbnail":false,"trashed":false,"lapsed":null,"subscribed":null,"forks":0,"collection":null,"type":"notebook","body":{"title":"IRA Tax stuff","cells":[{"id":0,"value":"md`# IRA Tax stuff`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":11,"value":"viewof retiredTaxRate = {\n return html``\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":15,"value":"viewof avgInvestmentReturnRate = {\n let x = html``\n html`${x}`;\n return x\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":20,"value":"viewof longTermCapGainsRate = {\n return html``\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":2,"value":"viewof currentTaxRate = {\n return html``\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":135,"value":"$2e","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":255,"value":"$2f","pinned":true,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":4,"value":"inputSummary = html`\nInputs:
\nCurrent Tax Rate = ${currentTaxRate}%\n
\nRetired Tax Rate = ${retiredTaxRate}%\n
\nAverage Rate of Return on Investment (over 40 years) = ${avgInvestmentReturnRate}%\n
\nLong-term Capital Gains Tax Rate = ${longTermCapGainsRate}%\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":25,"value":"Option1 = {\n return (1 + avgInvestmentReturnRate/100)**40 * (1 - retiredTaxRate/100)\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":37,"value":"Option2 = {\n return 1 * (1 - currentTaxRate/100) * (1 + (((1 + avgInvestmentReturnRate/100)**40 - 1) * (1 - longTermCapGainsRate/100)))\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":47,"value":"results = html`\nResults:
\nPercent saved by using IRA: ${((1 - Option2/Option1) * 100).toFixed(1)}%
\nOption 1: $1 * (1 + ${avgInvestmentReturnRate/100})^40 * (1 - ${retiredTaxRate/100}) = $${Option1.toFixed(2)}
\nOption 2: $1 * (1 - ${currentTaxRate/100}) * (1 + (((1 + ${avgInvestmentReturnRate/100})^40 - 1) * (1 - ${longTermCapGainsRate/100}))) = $${Option2.toFixed(2)}
\n`","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":55,"value":"{\n viewof currentTaxRate.value = 35;\n viewof currentTaxRate.dispatchEvent(new CustomEvent(\"input\"));\n \n viewof retiredTaxRate.value = 35;\n viewof retiredTaxRate.dispatchEvent(new CustomEvent(\"input\"));\n \n viewof avgInvestmentReturnRate.value = 4;\n viewof avgInvestmentReturnRate.dispatchEvent(new CustomEvent(\"input\"));\n \n viewof longTermCapGainsRate.value = 15;\n viewof longTermCapGainsRate.dispatchEvent(new CustomEvent(\"input\"))\n}","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":95,"value":"normal = (current_tax_rate, avg_investment_return, cap_gains_rate) => (1 - current_tax_rate) * (1 + (((1 + avg_investment_return)**40 - 1) * (1 - cap_gains_rate)))\n","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":99,"value":"traditional_ira = (avg_investment_return, retirement_tax_rate) => (1 + avg_investment_return)**40 * (1 - retirement_tax_rate)\n","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":102,"value":"roth_ira = (avg_investment_return, current_tax_rate) => (1 + avg_investment_return)**40 * (1 - current_tax_rate)","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":104,"value":"contribution_cap = 5500","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":140,"value":"data1 = {\n let current_tax_rate = currentTaxRate / 100\n let avg_investment_return = avgInvestmentReturnRate / 100\n let cap_gains_rate = longTermCapGainsRate / 100\n let data = []\n for (let retirement_tax_rate = 0.00; retirement_tax_rate <= 0.5; retirement_tax_rate += 0.01) {\n let o = { \"not using an IRA\": normal(current_tax_rate, avg_investment_return, cap_gains_rate),\n \"using a Traditional IRA\": traditional_ira(avg_investment_return, retirement_tax_rate),\n \"using a Roth IRA\": roth_ira(avg_investment_return, current_tax_rate),\n retirement_tax_rate: retirement_tax_rate,\n };\n for (let key in o) {\n if (key != \"retirement_tax_rate\") {\n data.push({ name: key, retirement_tax_rate:o.retirement_tax_rate, value: o[key] })\n }\n }\n }\n return data;\n}","pinned":true,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":267,"value":"data2 = {\n let current_tax_rate = currentTaxRate / 100\n let avg_investment_return = avgInvestmentReturnRate / 100\n let cap_gains_rate = longTermCapGainsRate / 100\n let pretax_roth_max = contribution_cap / (1 - current_tax_rate)\n let data = []\n for (let retirement_tax_rate = 0.00; retirement_tax_rate <= 0.5; retirement_tax_rate += 0.01) {\n let o = { \"not using an IRA\": pretax_roth_max * normal(current_tax_rate, avg_investment_return, cap_gains_rate),\n \"using a Traditional IRA\": contribution_cap * traditional_ira(avg_investment_return, retirement_tax_rate) + (pretax_roth_max - contribution_cap) * normal(current_tax_rate, avg_investment_return, cap_gains_rate),\n \"using a Roth IRA\": pretax_roth_max * roth_ira(avg_investment_return, current_tax_rate),\n retirement_tax_rate: retirement_tax_rate,\n };\n for (let key in o) {\n if (key != \"retirement_tax_rate\") {\n data.push({ name: key, retirement_tax_rate:o.retirement_tax_rate, value: o[key] })\n }\n }\n }\n return data;\n}","pinned":true,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"},{"id":137,"value":"vegalite = require(\"@observablehq/vega-lite@0.1\")","pinned":false,"hidden":false,"mode":"ojs","author":"$undefined","summary":"$undefined","output":"$undefined","database":"$undefined"}],"files":"$W30","stdlib":"1","titling":"auto"}} 2d:"$2c:body"