Which would be the best choice for Jacob

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Question - Jacob is self-employed and last year he earned $60,000. He managed to save $10,000 of this amount and is considering his investment options. He recently married and just learned that his wife is expecting their first child. In addition to the $10,000 that he plans to invest, he has another 15,000 in an emergency fund. Considering his desire to maximize the tax effectiveness of his investment, which of the following would be the best choice for Jacob?

1- Jacob should contribute the money to his RRSP

2-Jacob should invest the money in a new limited partnership that a colleague is setting up, because he could use the partnership losses to reduce his current taxable income

3- Jacob should invest the money in a non-registered money market fund

4- He should use the money as a down payment on a piece of real estate.

Reference no: EM133104345

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