Sarah, aged 28, has just started her career and anticipates her income will significantly increase over the next 10-15 years. Her primary financial goal is to save for a down payment on a house in five years. Which registered account would generally be most suitable for her to prioritize in the near term?

Question: Sarah, aged 28, has just started her career and anticipates her income will significantly increase over the next 10-15 years. Her primary financial goal is to save for a down payment on a house in five years. Which registered account would generally be most suitable for her to prioritize in the near term?

Answer options:

• Registered Retirement Savings Plan (RRSP) ✅ Tax-Free Savings Account (TFSA)
• Registered Education Savings Plan (RESP)
• Registered Disability Savings Plan (RDSP)

Correct answer: Tax-Free Savings Account (TFSA)

Explanation: For short-term goals like a down payment with potential for immediate access and future higher tax brackets, the TFSA is ideal as contributions are after-tax, and withdrawals (including growth) are tax-free.