Maria, 45, is planning for retirement and is considering various investment vehicles. She earns a high income and has maximized her RRSP contributions. She also wants to save for her children's post-secondary education. Which of the following investment vehicles would be most suitable for her additional after-tax savings, considering tax efficiency and her goals?

Question: Maria, 45, is planning for retirement and is considering various investment vehicles. She earns a high income and has maximized her RRSP contributions. She also wants to save for her children's post-secondary education. Which of the following investment vehicles would be most suitable for her additional after-tax savings, considering tax efficiency and her goals?

Answer options:

• An open non-registered investment account holding Canadian dividend-paying stocks. ✅ A Tax-Free Savings Account (TFSA) for additional long-term savings.
• An uninsured Guaranteed Investment Certificate (GIC) ladder for growth.
• Investing directly in a rental property for its potential capital appreciation.

Correct answer: A Tax-Free Savings Account (TFSA) for additional long-term savings.

Explanation: A TFSA is highly tax-efficient for additional savings, as all income earned (interest, dividends, capital gains) and withdrawals are tax-free. This makes it an excellent choice for long-term growth and flexibility, surpassing the benefits of a non-registered account even with dividend tax credits.