For investors, the true return of an investment is measured by the efficiency with which it posses purchasing power to the future. This efficiency can in turn be measured by the real adjusted rate of return after TAX and inflation.
Two key factors that affect the tax adjusted true rate of return are the allocation and management of assets, and tax planning :
To grow your wealth in a long-term, tax planning represents a source of value creation of roughly the same importance as the allocation and management of assets.
However this should not mean that tax considerations should play a driving or dominant role in allocation of assets, as there can be products with tax incentive trap which may compromise on basic investment returns. But the high levels of taxation on wealth and its yield in various countries mean that tax aspects can no more be overlooked.
