Tax Suppression Modeling

Stop the "Tax Drag."

Your portfolio balance is a lie. See exactly how much of your nest egg belongs to you, and how much is deferred tax liability.

Portfolio Parameters

Marginal rate upon withdrawal (RRSP/RRIF).

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Gross Portfolio Value

$0.00

Total Tax Liability (Deferred)

$0.00

The "Tax Erosion" Curve

YOUR SHARE

* The red area represents the portion of your wealth that legally belongs to the CRA/IRS upon withdrawal at standard rates.

Is your wealth efficient?

Standard "buy and hold" strategies ignore decumulation taxes. Our models calculate the optimal order to withdraw from RRSP vs. TFSA to minimize this liability.

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The "Silent Partner" in Your Portfolio

When you look at your RRSP or 401k balance, you are looking at a pre-tax number. This creates a "Wealth Illusion." You do not own 100% of that account; you have a silent partner—the government—waiting for their share upon withdrawal.

The Vector Philosophy: Tax Alpha. Investment returns are important, but tax retention is critical. For Canadian retirees, "Tax Drag" can erode 30% to 50% of buying power if withdrawals trigger OAS clawbacks or push you into higher marginal brackets.

Strategies to Reduce Liability

  • TFSA Maximization: Prioritizing Tax-Free Savings Accounts shifts growth from "Deferred" to "Exempt."
  • RRIF Meltdown: Strategically withdrawing from registered accounts *before* age 71 to smooth out tax brackets over time.
  • Income Splitting: Using spousal RRSPs or pension splitting to lower the household's effective tax rate.

The OAS Clawback Threshold:

In Canada, if your net income exceeds the recovery tax threshold, the government begins to reduce your Old Age Security pension. Our Clarity Report models this threshold specifically to prevent accidental benefit loss.