Episode 250 - What Is Your Net After Tax Return?

In this episode, Ryan Burklo and Alex Collins discuss the taxation component of net after-tax rate of return. They emphasize the importance of understanding the impact of taxes on investment returns over a long period of time. They use a visual representation to show the difference between gross and net growth of an investment portfolio after taxes. They highlight the significant impact that taxes can have on the final value of assets and the importance of considering taxation when making investment decisions. They also tease the next episode, where they will discuss strategies to increase cash flow in retirement while decreasing taxation.

Takeaways

Understanding the impact of taxes on investment returns is crucial for long-term financial planning.
Taxes can significantly reduce the net growth of an investment portfolio.
Considering taxation when making investment decisions is important to maximize after-tax returns.
Strategies to increase cash flow in retirement while decreasing taxation can have a significant impact on financial well-being.

Chapters

00:00 Introduction: Net After-Tax Rate of Return
02:36 The Importance of Considering Taxes in Investment Returns
06:54 Gross Growth vs. Net Growth: The Impact of Taxes
10:08 Strategies for Maximizing After-Tax Returns
13:02 Teaser: Increasing Cash Flow and Decreasing Taxation in Retirement
14:34 Question of the Day: Strategies for Increasing Cash Flow and Decreasing Taxation