Season 1 · Episode 16
Does Borrowing to Invest Make Sense with High Interest Rates?
Unconventional Wisdom · Ed Rempel
April 25, 202321m 15s
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Show Notes
Should you borrow to invest?
With interest rising 4.5% recently, does it still make sense?
Spoiled with low interest rates so low for many years, leverage seemed so obvious with a credit line at 3% and tax-deductible, while getting the growth of the stock market.
As a fee-for-service financial planner, and an expert on the Smith Manoeuvre strategy and effective investing, my latest podcast episode will give you my insight.
You'll learn:
- How to borrow to invest ("leverage") effectively.
- What happened with leverage in past periods of high interest rates?
- How high can interest rates go & borrowing to invest is still beneficial?
- Rule of thumb for breakeven point of borrowing to invest.
- What is the mindset you need to borrow to invest effectively?
- What is the best tax deduction after RRSP for high income people?