Most investors need to save for a future retirement. Most likely you are aware of RRSPs, TFSAs, and their benefits and limitations. If you have a time horizon of 10 years or more before you plan to take income from your investments, potentially better way to tax-efficiently reach your savings goals. You can read more about this strategy on the B2B Bank Page on Borrowing to Invest. Potential benefits of this strategy include:
If you borrow to invest with potential of earning income, the interest is normally tax-deductible. If you borrow against your home equity as you pay down your original loan, you can effectively convert your mortgage to an investment loan.
When a consumer takes out a loan to purchase a vehicle, they expect the asset they are purchasing to go depreciate. When an investor takes out an investment loan, they purchase an investment portfolio they anticipate will increase in value – though of course there are no guarantees.
Contact us to discuss whether an investment loan program would help you achieve your financial goals.
Many people invest because they believe it’s a good way to achieve their financial goals. They also know that getting professional financial advice can help them invest better. If you’re working with a financial advisor (or considering it), you should understand how advisors are compensated. The topic of fees can be complicated, but we’ll sti...Read More
In all Canadian provinces, corporations enjoy a relatively low tax rate. In fact, most business owners and incorporated professionals are better off leaving their retained earnings in a ho...Read More
The best place to save for retirement and grow your wealth may be your corporation, not an RRSP or IPP. Examples below are based on 2021 personal and corporate tax rates for BC taxpayers. Does your business earn $500,000 or less? In 2021, the tax rate on corporate income below the small business deduction threshold of...Read More