Originally Posted by pb4uski
My spreadsheet projections include a mini tax return that computes taxable income and federal and state taxes so my taxes are in my expenses for planning purposes.
However if I was doing a formal net worth calculation I would do a deferred tax liability for my tax-deferred accounts and for unrealized gains and losses on my taxable accounts.
I do a mini tax return projection for the current year and the following year (rolling over each year).
However, in my spreadsheet projection (which covers nearly 50 years), I estimate taxes at 20% of funds withdrawn from our IRAs. This will obviously get refined as time goes on, but seems to be a reasonable estimate today. Our tax rate last year was 12% (state/federal combined). BTW, we do not estimate taking money out of our IRAs for another 20 years.