FAQ: Why Do I Have Taxable Capital Gains in my Non Registered Account Before Retirement?

The platform will automatically calculate non-registered income sources including interest/bond coupons, capital gains, Canadian dividends and foreign dividends. As a default the equity return is made up of capital gains (60%), Canadian dividends (20%) and foreign dividends (20%) and this split can be adjusted if you go to Planning > Projections > Advanced Options. Go to the Taxable Account area and open the return column using the “>” arrow.

As a default the platform also assumes a 5% annual portfolio turnover in the non-reg account, this is to account for annual rebalancing and/or capital gain distributions from ETFs. This turnover can cause small capital gains to be calculated. This again can be adjusted if you go to Planning > Projections > Advanced Options. Go to the Taxable Account area and find the portfolio turnover.