Question: Suppose that when you turn 25 , you are single and are in a 22% bracket for federal income tax and a 8% bracket for

Suppose that when you turn 25 , you are single and

Suppose that when you turn 25 , you are single and are in a 22% bracket for federal income tax and a 8% bracket for marginal income for state and local income taxes. (In 2021, this corresponded to an income between about $40,000 and $86,000 after a standard deduction of $12,550.) This means that you pay an income tax rate ("marginal rate") of 30% on the top part of your income but a lower rate on the rest. Suppose that you commit to saving $100 per month after taxes toward retirement

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