Three brothers (Larry, Moe and Curley) became parents the same year and wanted to save for their children post-secondary education. However, they disagreed on which option is best. They have each chosen a different route to essentially do the same thing. Save for their babys college/university education. What they all agreed on was to save $ 2,500 each year respectively for their child.

Larry chose Option 1: Open a TFSA Investment account paying 7% annually for 17 years.

Moe chose Option 2: Open a Regular investment account (instead of the TFSA) where the 7% return is taxed at 40% annually for 17 years. The net return after tax is reinvested annually for 17 years.

Curley chose Option 3: Open an RESP investment account paying 7% annually for 17 years, as he wanted to take advantage of the CESG.

Who has made the best decision and why