Schwab Center for Financial Research. Assumes a portfolio with 50% of the assets in a taxable account and 50% in a tax advantaged account. Calculated by allocating the most tax-efficient assets in taxable account and the least tax-efficient assets in tax-advantaged account, based on Schwab's capital market expectations for future asset returns. Conservative portfolio assumes a target allocation of 22% cash, 62% bonds and 16% equities. The example is hypothetical and provided for illustrative purposes only and is not intended to represent a specific investment product or outcome. *Does not include state taxes. Some tax brackets include the 3.8% net investment income tax.