We’re Going to Have to Trust Him on This

To quote Thomas Bonk’s column of Tuesday: “Here’s a 20-year-old who just made deals worth at least $43 million and he’s moving out of state to avoid taxes? For what Woods is paying his management team, maybe he should be getting better advice.”

Good grief! Mr. Bonk has the financial acumen of a gnat. If Tiger were to average $8 million a year in income, he would pay 11% state taxes in California. Deducting this tax on his federal return in the 40% tax bracket would result in a total tax of $3,728,000 yearly. In Florida, the annual tax would be $3.2 million. This is an annual savings of $528,000. If this annual saving were placed in tax-free municipal bonds at a conservative 6% interest rate, the total account value at age 60 would be $81,714,318.

That’s why Tiger hired his management team rather than Mr. Bonk.

FRED F. SOLOMON

Solana Beach