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The ‘tax-free trap’: How a simple phrase skews Canadians’ savings choices

By Ruth Pogacar, Associate Professor, Haskayne School of Business, University of Calgary
Jonathan Farrar, Professor of Accounting, Wilfrid Laurier University
Leslie Berger, Associate Professor, Lazaridis School of Business and Economics, Wilfrid Laurier University
Lu Zhang, Associate Professor of Finance, Toronto Metropolitan University

New research finds that people are more likely to choose a plan that has the words “tax-free” in the title, regardless of the details in fine print.

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