Why does the ISG software work with before-tax income?
If you ask people how much income they need, they will almost always cite a before-tax value. Most people relate to before-tax income better than they relate to after-tax income, and they actually have a better understanding of their income needs on a before-tax basis. Few people live their lives according to a well-defined and known after-tax budget. We recommend investing on a tax-deferred basis so that taxes are only paid on current annual income. The book that accompanies the ISG software includes a number of examples to demonstrate how to handle various tax situations. For complex situations we highly recommend seeking competent professional assistance.
