The True Cost Of Tax Inefficiency

When investors run out of contribution room in their tax-sheltered investment accounts, such as Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs), they often continue investing in a non-registered investment account, which unfortunately does not provide the same automatic benefit of avoiding or deferring taxes. Managing investments in a taxable portfolio then becomes a much more complicated exercise—one that attempts to maximize wealth on an after-tax...