What tax-saving advice can you offer the culligans

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Question - Mr. Max and Dr. Julia Culligan are in to make their annual RSP contribution. Max works part-time as a landscaper and earns $40,000 a year. Julia is a surgeon and earns $250,000 a year. Julia makes a maximum contribution to a spousal RSP while Max uses all of his disposable income to contribute his maximum to an SP in his own name (he has very little disposable income as he and Julia split all costs 50/50). They both invest the funds in equity mutual funds. What tax-saving advice can you offer the Culligans?

a) Max should invest in funds which provide more interest income rather than dividends and capital gains

B) Julia should not contribute to her maximum limit this year pic

C) Max should be contributing to a spousal RSP instead of Julia

D) Julia should direct more of her income towards paying household expenses

Reference no: EM133175259

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