31. How do taxes affect my investment returns?

Quick Answer:
Taxes can significantly reduce net returns; planning when and where to invest helps preserve gains.

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Learn More:
Capital-gains tax, dividend tax, and withholding charges can erode profits. Holding investments longer and using tax-advantaged accounts improves after-tax results. Evaluating performance without taxes gives a false sense of progress. Findex highlights post-tax performance to provide a more accurate measure of real returns.

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