Ignoring Taxes in Financial Planning? Your Investment Corpus May Fall Short of Long-Term Financial Goals

Summary

Investors often overlook taxes when planning for long-term financial goals, such as funding a child's education or buying a home. This can create a gap between expectations and reality, as taxes can reduce investment returns and erode portfolio value over time. To avoid falling short of their goals, investors can either estimate the tax impact and incorporate it into their calculations or build a margin of safety into their target corpus.