- The cash earnings per share (CEPS) expected for the first upcoming year
- The number of years until these cash earnings plateau
- The level at which these cash earnings per share plateau, and
- A uniform discount rate at which to discount these cash flows.
I have hardcoded the assumption that these cash flows will be projected and discounted out 30 years, then ignored after that. Let me know in the comments if you find this tool useful, or have found a better one elsewhere.
As always, this blog post and the below calculator are for illustration and discussion purposes only, and are not tax advice of any kind.
Roth IRA conversion calculator
|First year CEPS:|
|Number of years to plateau:|
|Risk-free discount rate (AKA your “basis” for any non-deductible IRA contributions):|
|Saving now vs later: which adds up to more?|