Tax drag as of · 365

Taxes change which return compounds — wrappers, location and realisation timing as first-class levers. Tax drag is how income, dividends and capital-gains rules reduce the rate that compounds inside a taxable account versus a sheltered one. Tax drag sits in the engines family of this atlas: mechanisms first, products second, hype never.

Use the calculator for scenarios, then return to the section pages when you want the vocabulary behind the curve. No. Tool-Lifes pages are educational atlases. Decisions need your goals, constraints and, when appropriate, a licensed adviser. Do I need a high return for compounding to matter?

Higher net rates help, but time and contributions often dominate — especially early. Costs and behaviour can erase a “good” rate. Treat outputs as scenario sketches. Vary contribution, rate, fees and inflation to see which lever moves your goal date. Always ask whether a figure is nominal or real. A high nominal path can still lose purchasing power.