InvestorQ : Since the LTCG tax will impact my final corpus, is there any formula for me to sustain my future wealth and not impact my corpus intended?
Abhisha Yadav made post

Since the LTCG tax will impact my final corpus, is there any formula for me to sustain my future wealth and not impact my corpus intended?

Answer
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Bhavika Nehru answered.
1 year ago


If you are not comfortable with a reduce corpus for retirement, then the other option is to increase your corpus regular accordingly. If you have just started your SIP in the last 3-5 years then the thumb rule is to increase your monthly contribution to the SIP by 10%. That means; you can increase your monthly SIP from Rs.10,000 per month to Rs.11,000 per month to ensure that your final corpus is not impacted. This may not really be a big burden on you if you are still in the early stages of your financial plan. Of course, if you are in the later stages, then it becomes a lot more complicated. Of course, the affordability factor does come in at this juncture but that is the best way to hedge your bets in a scenario where the LTCG tax will take away a good chunk of your long term wealth.