♦ Does Borrowing to Invest Make Sense with High Interest Rates? ♦

Should you borrow to invest?

With interest rates up 3.5% so far in 2022, you may be wondering if it still makes sense.

Spoiled with low interest rates so low, leverage seemed so obvious with a credit line at 3% and tax-deductible.

As a financial planner and expert on the Smith Manoeuvre strategy, and a proponent of investing in the stock market, my latest video 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?
…. and more!

Enjoy this week’s video!
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⏰ TIMESTAMPS

00:00 | Intro.
01:18 | How to borrow to invest (“leverage”) effectively.
02:56 | The most effective way to invest during high interest rates.
03:14 | What happened with leverage in past periods of high interest rates?
05:05 | How high can interest rates go and borrowing to invest is still beneficial?
07:45 | Rule of thumb for breakeven point of borrowing to invest.
12:25 | What is the mindset you need to borrow to invest effectively?
15:35 | The # 1 learned skill when it comes to investing.
16:33 | How does a growth mindset benefit you?
17:23 | What is the best tax deduction after RRSP for high income people?
20:12 | Recap of what you learned in the video.
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Please like, share and comment if this video has been helpful to you!

Thanks so much!
Ed Rempel
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Ed Rempel CPA, CMA, CFP is a financial blogger, fee-for-service financial planner and tax accountant with a ton of real life financial planning experience. He was awarded “Best Canadian Personal Finance Blog” by Expertido, and is the #1 financial blog in Canada for a financial planner on Hardbacon and Feedspot.

For the past 28 years, he has assisted thousands of Canadians with creating real, professional, “interactive” financial plans that earn results. Ed is known for his financial strategies, such as the Smith Manoeuvre and Lifecycle Investing strategies. He is also particularly skilled with the 8-Year GIS Strategy, a strategy to help seniors qualify for larger government pensions using effective planning & investing.

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