You have $30,000 in cash today.You want to make a lump-sum investment TODAY, as you have an infant child who was just born and you'll be super busy with "life" for the next little while.#parenting

You previously visited a psychic, who told you that your newborn child will be traveling through Europe for 2 years when they turn 18 and subsequently they will have a marginal personal tax rate of 0%, since they will not be working.It's nice to be able to see the future!:)

You'd like to make an investment TODAY that will maximize the amount of money available for your child to attend university in 20 years, after they are finished with their travels.You want them to get educated so that you can retire comfortably and don't have to support them in your old age!

Your marginal personal tax rate TODAY is 50%.In 20 years, your tax rate will be 30%.You have sufficient contribution room available for all types of special tax-deferred plans.

Assume that the funds, once invested, will generate a 10% pre-tax rate of return for the entire 20 year period.

Should you invest in:

a) RRSP

b) TFSA

c) RESP

Please compute the after-tax FV of each plan