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Great article to show historical returns when you consider the tax implications on three types of investment accounts. Good thing money ready takes taxes and inflation into account. 

Thought you might find this interesting but not surprising and could possibly be used in your communication? 

https://bestinterest.blog/how-do-taxes-affect-stock-returns/

 

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It’s a good article to start thinking about taxes and inflation and how they affect your returns, but obviously I don’t agree with just adjusting your rates of return (the “shorthand metric” at the end), that is way too simplistic and downright misleading. He also misses some points about taxable accounts, many people do.

Yes the dividends are taxed, so that’s a haircut, but if you’re a low income Canadian invest your non-registered portfolio in Canadian stocks, the dividend tax credit can be a boon. If you’re high income, avoid dividend paying stocks, go for growth in non-registered accounts. That growth is tax-free until you sell, and you get the capital gains exemption when you do. That tax break is lost in registered accounts. 

Anyway, not so simple, but luckily Canadians have the MoneyReady App 😀 Maybe I should write a blog post..

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Great feedback and I agree with being careful of over simplification. This being a US person and treatment would have different capital gain and dividend tax treatments. 

I believe a Canadian perspective, with Canadian historical data, communicating to people what they should realistically expect for returns could be very helpful with their long term planning. The information may also increase the chances of using the Money Ready model which will give a much more accurate result. 

Your call on writing an article but hopefully at least this article has provided something to consider? 

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Yes I understand. I put it on my to do list. Thanks