THE INTERACTIVE LEARNING COLLECTION
Wealth Race
Compare two fictional Canadians through time. Change assumptions and inspect the mathematical differences.
WEALTH RACE · TWO FICTIONAL CANADIANS
Alex and Sam start with the same cash, investments and debt. The example changes vehicle spending and investment contributions. You can edit every assumption; neither scenario is a recommended outcome.
Alex · Scenario A
Age 60 · Year 30
Estimated net worth of modelled balances$1,230,695Sam · Scenario B
Age 60 · Year 30
Estimated net worth of modelled balances$1,356,140Under the assumptions entered, Scenario B minus Scenario A is +$125,445 at age 60. This comparison does not determine which option is appropriate for you.
Scenario A assumptions
Scenario B assumptions
Why do the ending numbers differ?
At age 60, Scenario A produces $1,230,695 and Scenario B produces $1,356,140. The following signed amounts reconcile the +$125,445 difference (B minus A). Positive and negative describe arithmetic, not personal suitability.
| Mathematical driver | Effect on B minus A |
|---|---|
| Starting net position | $0 |
| Cumulative take-home income | $0 |
| Housing cash costs | $0 |
| Vehicle cash costs | +$72,000 |
| Other spending | $0 |
| One-time expenses | $0 |
| Debt interest | $0 |
| Investment growth after fees | +$53,445 |
Contributions move cash into investments; debt principal payments reduce both cash and debt. Neither creates net worth by itself. Contribution timing, return and fees change investment growth. The growth line groups these interacting assumptions rather than claiming a single cause.
Cumulative amounts at the end
| Amount | Scenario A | Scenario B |
|---|---|---|
| Take-home income | $2,434,085 | $2,434,085 |
| Housing cash costs | $648,000 | $648,000 |
| Vehicle cash costs | $180,000 | $108,000 |
| Other spending | $504,000 | $504,000 |
| One-time expenses | $0 | $0 |
| Investment contributions | $144,000 | $216,000 |
| Investment growth after fees | $124,795 | $178,240 |
| Investment fees (already included in growth) | $18,316 | $26,160 |
| Debt payments (principal + interest) | $11,185 | $11,185 |
| Debt interest accrued | $1,185 | $1,185 |
| Final-year cash flow after contributions | $57,351 | $57,351 |
Illustrative milestones
| Observation | Scenario A | Scenario B |
|---|---|---|
| $100,000 in investments | Age 44 | Age 41 |
| $500,000 in investments | Not reached | Not reached |
| $1,000,000 in investments | Not reached | Not reached |
| Separate debt reaches zero | Age 34 | Age 34 |
Milestones use year-end observations, not targets or promises.
Scenario A · yearly ledger
| Age | Cash / shortfall | Investments | Debt | Net position | Annual cash flow | Cumulative spending | Cumulative interest |
|---|---|---|---|---|---|---|---|
| 30 | $5,000 | $10,000 | $10,000 | $5,000 | $0 | $0 | $0 |
| 31 | $12,800 | $15,224 | $7,533 | $20,491 | $7,800 | $44,400 | $533 |
| 32 | $21,800 | $20,630 | $4,914 | $37,516 | $9,000 | $88,800 | $914 |
| 33 | $32,024 | $26,224 | $2,133 | $56,115 | $10,224 | $133,200 | $1,133 |
| 34 | $44,311 | $32,013 | $0 | $76,324 | $12,287 | $177,600 | $1,185 |
| 35 | $60,057 | $38,003 | $0 | $98,060 | $15,746 | $222,000 | $1,185 |
| 36 | $77,102 | $44,201 | $0 | $121,303 | $17,045 | $266,400 | $1,185 |
| 37 | $95,472 | $50,616 | $0 | $146,088 | $18,370 | $310,800 | $1,185 |
| 38 | $115,193 | $57,253 | $0 | $172,446 | $19,721 | $355,200 | $1,185 |
| 39 | $136,293 | $64,122 | $0 | $200,414 | $21,100 | $399,600 | $1,185 |
| 40 | $158,798 | $71,229 | $0 | $230,027 | $22,506 | $444,000 | $1,185 |
| 41 | $182,738 | $78,584 | $0 | $261,322 | $23,940 | $488,400 | $1,185 |
| 42 | $208,140 | $86,195 | $0 | $294,335 | $25,402 | $532,800 | $1,185 |
| 43 | $235,035 | $94,071 | $0 | $329,105 | $26,895 | $577,200 | $1,185 |
| 44 | $263,451 | $102,220 | $0 | $365,671 | $28,416 | $621,600 | $1,185 |
| 45 | $293,420 | $110,654 | $0 | $404,073 | $29,969 | $666,000 | $1,185 |
| 46 | $324,972 | $119,380 | $0 | $444,352 | $31,552 | $710,400 | $1,185 |
| 47 | $358,139 | $128,411 | $0 | $486,550 | $33,167 | $754,800 | $1,185 |
| 48 | $392,954 | $137,756 | $0 | $530,709 | $34,814 | $799,200 | $1,185 |
| 49 | $429,448 | $147,426 | $0 | $576,874 | $36,495 | $843,600 | $1,185 |
| 50 | $467,657 | $157,432 | $0 | $625,089 | $38,209 | $888,000 | $1,185 |
| 51 | $507,614 | $167,787 | $0 | $675,401 | $39,957 | $932,400 | $1,185 |
| 52 | $549,354 | $178,502 | $0 | $727,856 | $41,740 | $976,800 | $1,185 |
| 53 | $592,913 | $189,590 | $0 | $782,503 | $43,559 | $1,021,200 | $1,185 |
| 54 | $638,327 | $201,064 | $0 | $839,390 | $45,414 | $1,065,600 | $1,185 |
| 55 | $685,633 | $212,937 | $0 | $898,570 | $47,306 | $1,110,000 | $1,185 |
| 56 | $734,869 | $225,223 | $0 | $960,092 | $49,236 | $1,154,400 | $1,185 |
| 57 | $786,074 | $237,937 | $0 | $1,024,011 | $51,205 | $1,198,800 | $1,185 |
| 58 | $839,287 | $251,093 | $0 | $1,090,381 | $53,213 | $1,243,200 | $1,185 |
| 59 | $894,549 | $264,708 | $0 | $1,159,256 | $55,261 | $1,287,600 | $1,185 |
| 60 | $951,900 | $278,795 | $0 | $1,230,695 | $57,351 | $1,332,000 | $1,185 |
Scenario B · yearly ledger
| Age | Cash / shortfall | Investments | Debt | Net position | Annual cash flow | Cumulative spending | Cumulative interest |
|---|---|---|---|---|---|---|---|
| 30 | $5,000 | $10,000 | $10,000 | $5,000 | $0 | $0 | $0 |
| 31 | $12,800 | $17,662 | $7,533 | $22,929 | $7,800 | $42,000 | $533 |
| 32 | $21,800 | $25,591 | $4,914 | $42,477 | $9,000 | $84,000 | $914 |
| 33 | $32,024 | $33,796 | $2,133 | $63,687 | $10,224 | $126,000 | $1,133 |
| 34 | $44,311 | $42,286 | $0 | $86,597 | $12,287 | $168,000 | $1,185 |
| 35 | $60,057 | $51,071 | $0 | $111,129 | $15,746 | $210,000 | $1,185 |
| 36 | $77,102 | $60,163 | $0 | $137,265 | $17,045 | $252,000 | $1,185 |
| 37 | $95,472 | $69,571 | $0 | $165,043 | $18,370 | $294,000 | $1,185 |
| 38 | $115,193 | $79,306 | $0 | $194,499 | $19,721 | $336,000 | $1,185 |
| 39 | $136,293 | $89,380 | $0 | $225,672 | $21,100 | $378,000 | $1,185 |
| 40 | $158,798 | $99,804 | $0 | $258,603 | $22,506 | $420,000 | $1,185 |
| 41 | $182,738 | $110,592 | $0 | $293,330 | $23,940 | $462,000 | $1,185 |
| 42 | $208,140 | $121,754 | $0 | $329,895 | $25,402 | $504,000 | $1,185 |
| 43 | $235,035 | $133,306 | $0 | $368,340 | $26,895 | $546,000 | $1,185 |
| 44 | $263,451 | $145,259 | $0 | $408,710 | $28,416 | $588,000 | $1,185 |
| 45 | $293,420 | $157,628 | $0 | $451,048 | $29,969 | $630,000 | $1,185 |
| 46 | $324,972 | $170,428 | $0 | $495,400 | $31,552 | $672,000 | $1,185 |
| 47 | $358,139 | $183,673 | $0 | $541,812 | $33,167 | $714,000 | $1,185 |
| 48 | $392,954 | $197,378 | $0 | $590,332 | $34,814 | $756,000 | $1,185 |
| 49 | $429,448 | $211,561 | $0 | $641,010 | $36,495 | $798,000 | $1,185 |
| 50 | $467,657 | $226,238 | $0 | $693,895 | $38,209 | $840,000 | $1,185 |
| 51 | $507,614 | $241,425 | $0 | $749,039 | $39,957 | $882,000 | $1,185 |
| 52 | $549,354 | $257,141 | $0 | $806,495 | $41,740 | $924,000 | $1,185 |
| 53 | $592,913 | $273,403 | $0 | $866,316 | $43,559 | $966,000 | $1,185 |
| 54 | $638,327 | $290,232 | $0 | $928,559 | $45,414 | $1,008,000 | $1,185 |
| 55 | $685,633 | $307,646 | $0 | $993,279 | $47,306 | $1,050,000 | $1,185 |
| 56 | $734,869 | $325,666 | $0 | $1,060,536 | $49,236 | $1,092,000 | $1,185 |
| 57 | $786,074 | $344,314 | $0 | $1,130,388 | $51,205 | $1,134,000 | $1,185 |
| 58 | $839,287 | $363,610 | $0 | $1,202,897 | $53,213 | $1,176,000 | $1,185 |
| 59 | $894,549 | $383,578 | $0 | $1,278,127 | $55,261 | $1,218,000 | $1,185 |
| 60 | $951,900 | $404,240 | $0 | $1,356,140 | $57,351 | $1,260,000 | $1,185 |
How the model works
All values are nominal CAD. Income is after tax; no tax brackets, account limits or benefit entitlements are calculated. Monthly income first covers entered cash expenses, a separate debt payment, and the entered investment contribution. The remainder changes cash, which earns 0%. A cash shortfall is recorded explicitly without assuming a source of financing. Investments are not automatically sold to fill it.
Investment return and fees use the existing monthly compounding engine’s convention: growth, then fees, then the month-end contribution. Debt interest is the annual rate divided by 12; payments stop at the amount owed. A payment below interest leaves unpaid interest in the balance and increases debt. Accrued interest is not necessarily interest paid. Expenses and returns remain assumptions, not predictions. A one-time expense occurs at the end of the selected year and has no resale value.
Housing and vehicle inputs are cash expenses only; this model does not value a home, car or pension. Avoid including the separate debt payment again in those expense inputs. For asset ownership and financing, use the existing home and car explorers. Living costs are constant. Income growth applies once per year. For retirement-income changes and living-cost growth, explore Wealth Lab.
No tax on investment growth, inflation adjustment of results, lending approval, new borrowing, account restrictions or uncertain return paths are modelled. Inputs remain only in this page. No scenario is ranked or selected for you.
Explore the concepts behind the comparison
Compounding and fees in Investing 101 →Spending and borrowing in Financial Literacy 101 →Retirement Ready savings illustrations →Car ownership →Home ownership →Explore Wealth Lab →North of Numbers explains the math. You make the decision. Educational illustrations only; actual outcomes can differ materially.