Does Borrowing to Invest Make Sense with High Interest Rates?

25/04/2023 21 min Temporada 1 Episodio 16
Does Borrowing to Invest Make Sense with High Interest Rates?

Listen "Does Borrowing to Invest Make Sense with High Interest Rates?"

Episode Synopsis

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?  

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