INVESTMENT FUNDING STRATEGIES
Many business owners and corporate executives have excellent cash flow, but few assets outside their home, business or company shares. With many years ahead of them before retirement, intelligent borrowing to invest can be a part of their portfolio. For example, borrowing into RRSPs allows a generous tax refund to pay off any bad debts like credit cards. With this strategy, their monthly investment goes to low interest ‘good’ debt for their RRSP, instead of expensive ‘bad’ debt. Atlas Wealth Financial can help connect you with specialists for:
RRSP loans, with terms from 6 months to 10 years, and rates as low as Prime + 0.5%
RESP loans, for those eager to capture government education grants and to plan ahead for your child’s education
Non-registered investment loans, which can be interest-only, or which can even be invested into pension products with guaranteed lifetime payouts. This type of borrowing also allows a tax break each year that you pay interest.
The Smith Maneuver is an efficient strategy to use the equity in your home to invest for your future without using your cash flow. It converts your mortgage over time into a tax-deductible investment credit line.
It is important to understand that borrowing to finance investments can have associated risks. Though not for everyone, banking or borrowing solutions can be used in your plan, and we are here to help.