You’ve made up your mind and would like to use your home loan to create wealth? Canadian investors can transform their mortgage into a tax-deductible loan with the Smith Manoeuvre. But then, what? How to proceed? Which rules should you set yourself? Mike shares his best tips based on his own leverage portfolio!
This episode includes many references to Dividend Stocks Rock Stock Screener. You can visit the DSR website right here or have a glance and what Mike’s filters looked like below.
- How does the Smith Manoeuvre work and what kind of expectations should investors have.
- What is Mike’s goal with his leverage portfolio and the role played by compounding interest?
- Is it good timing to start such a strategy and why is it best suited for investors with a high-risk tolerance?
- Why investors should use a non-registered account to create a Smith Manoeuvre and the flexibility a margin account can bring.
- What type of budget should you aim at without taking too much risk?
- The 4 Rules Mike set himself for his leverage strategy and why it is important to have some.
- Which set of filters to use in order to pick among the best companies possible.
- The importance of looking at your sector allocation before adding any stock to your buy list.
- How do you determine the order in which to buy your stocks for a brand new leverage portfolio?
- Is borrowing to invest a good idea at any age?
To follow the updates on Mike’s Smith Manoeuvre portfolio and to access all his previous Dividend Income Reports, simply follow this link.
You can dive deeper into the concept of the Smith Manoeuvre in the episode below.
Small caps are in for a rollercoaster ride, but can bring a lot of growth to your portfolio! Often overlooked, these companies still tend to outperform large caps. Here are their pros and cons as well as our best picks in the small caps category!
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This podcast episode has been provided by Dividend Stocks Rock.