Growth Comparison at Year 20
Assuming a 6.0% annual return and a 31.48% marginal tax rate.
How tax is analyzed: In an FHSA and TFSA, investments grow tax-free. An RRSP provides a tax deduction today (assumed reinvested or saved), but withdrawals are fully taxed at your marginal rate. A Non-Registered account suffers "tax drag" annually on dividends/interest, and capital gains tax on the remainder when sold. *Assumes marginal tax rate remains consistent.