- Annual rate of return
- This is the annual rate of return you expect from your investments after taxes. The actual rate of return is largely dependent on the type of investments you select. For example, the total return including dividends of the S&P/TSX Composite Index for the 10 year period from December 31, 2013 through December 31, 2023 was 8.6% (source www.spglobal.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
- Years to contribute
- Number of years you plan on making contributions.
- Years of withdraws
- Number of years you plan on taking distributions. Enter '1' for a lump sum distribution. All distributions are assumed to happen at the beginning of the period.
- Existing balance
- Any existing balance for the accounts.
- New contributions
- Your periodic contribution. All contributions are assumed to happen at the beginning of the period.
- Contribution frequency
- The frequency of your contributions. The options are Monthly, Quarterly, or Annually. All contributions are assumed to be made at the beginning of the period.
- Withdrawal frequency
- The frequency of your distributions. The options are Monthly, Quarterly or Annually. All distributions are assumed to be taken at the end of the period.
- Tax during contributions / withdrawals*
- Your estimated marginal tax rate. **TAXTABLE_CURRENT_DEFINITION** *Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the hypothetical investments shown. Investors should consider their personal investment horizon and income tax bracket, both current and anticipated, when making an investment decision, as these may further impact the comparison.
- Increase tax-deferred contribution by tax deduction savings
- If you check this box the calculator will assume contributions to the tax-deferred investment are tax-deductible when they are made. The calculator will then increase the contribution amount for the tax-deferred investment by the amount required to make the net contribution equal to the investments that have contributions made on an after-tax basis.
