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Three brothers (Samuel, Freddie and Charlie) became parents the same year and wanted to save for their children postsecondary education. However, they disagreed on which
Three brothers (Samuel, Freddie and Charlie) became parents the same year and wanted to save for their children postsecondary 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 baby's college/university education. What they all agreed on was to save $ 2,000 each year respectively for their child. Samuel chose Option 1: Open a TFSA Investment account paying 6% annually for 17 years. Freddie chose Option 2: Open a Regular investment account (instead of the TFSA) where the 6% return is taxed at 30% annually for 17 years. The net return after tax is reinvested annually for 17 years. Charlie chose Option 3: Open an RESP investment account paying 6% annually for 17 years, as he wanted to take advantage of the CESG. Who has made the best decision and why
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