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Accrual Equivalent After Tax Return


Definition

The tax-free return to an investment that, if accrued annually, produces the same after-tax accumulation as the taxable portfolio.

Using the term Accrual Equivalent After Tax Return :

Ms. Johnson told her broker that she wishes her portfolio to have the accrual equivalent after tax return as a comparable taxable portfolio.

Pay Special Attention To :

Taxes are a very important part of investing. Ensure you get good advice in order to maximize after-tax returns.

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Related terms

Accrual Equivalent Tax Rate