+1 the most common approach is to include a provision for taxes in your budgeted spending. Alternatively, you could input the value of your investments net of taxes and then exclude taxes from your spending. Or do it both ways and see how the results are.
BTW, 20% is probably way too high depending IME especially after considering deductions, exemptions and progressivity of tax rates.
You can get an idea on the amount/percentage by doing a pro forma tax return as if you were retired.
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