🛡️ How much would I save in taxes this year using a return of capital income fund instead of selling index fund shares?
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Reviews of How much would I save in taxes this year using a return-of-capital income fund instead of selling index fund shares?
Finn
This calculator provides a straightforward comparison of your current-year tax bill when generating cash from index funds versus high-yield ETFs. It's a helpful starting point for investors planning their taxable account withdrawals and looking to minimize immediate tax drag. Just remember that Return of Capital (ROC) distributions defer taxes rather than eliminating them, as they lower your cost basis for when you eventually sell the ETF shares. You'll also want to check if your specific ETF's non-ROC distributions are taxed as ordinary income, which may be higher than the flat capital gains rate assumed here.
Reviewed v26.8.6
Aug 6, 2026
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Compare how investing in index funds versus keeping cash in savings affects your ability to draw down a lump sum over time.
Projects your portfolio with and without an assets-under-management advisor fee, showing the compounding drag in dollars and whether self-managing with index funds is the better deal.
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