Give your investments a boost, Catch up on your Goals and Retire sooner with a Investment Loan

"Today, more than half of Canadians surveyed admit to not

being financially prepared for retirement. Some think they’ll

catch up, while others don’t know if they can."

It’s time for this thinking to change.

What is an Investment Loan?

An investment loan1 helps you take advantage of compound returns to boost your savings growth potential.

Unlike traditional investing, where you simply invest your savings each month, an investment loan involves borrowing money and investing a larger amount all at once. Also known as investment leveraging, this strategy allows a much larger deposit to grow for the full investment period. Then, instead of making additional monthly or annual contributions to your investment, you make "Interest Only" payments on the loan.

Plus, interest charged on an investment loan is generally tax-deductible.

This may reduce the cost of the loan.

  1. Leverage allows you to start with a larger initial investment.

  2. Because a larger amount is growing, compounding allows a leveraged investment to grow faster.

  3. Value before taxes are paid (on both types of investing) and loan is repaid (leverage only).

  4. Final investment value returned to the investor after taxes are paid and loan is repaid.

How does Investment Leverage Work?

Investment leveraging is borrowing to invest. That is, it is using someone else’s money to achieve your investment goals. Whether you know it or not, you may have already taken advantage of this strategy. For example, if you’ve had a mortgage, a student loan or a Registered Retirement Saving Plan (RRSP) loan, you’ve used someone else’s money to achieve your goal of home ownership, higher education or a more comfortable retirement.

Investment leveraging is similar to the examples above. Leveraging is simply borrowing money to purchase investments with the goal of achieving greater wealth.

The amount you pay for loan interest may be the same as the amount you would normally contribute to a traditional investment plan. But while your out-of-pocket costs may be the same under both strategies, leveraged investing has the potential to grow your money faster.

Why does your Money Grow Faster?

1. Compound returns: Compound returns refer to the fact that investment growth accelerates over time as the growth from one year is added to your initial investment to create a larger investment that can grow the next year, and so on. The key to successful compounding is having the largest possible amount growing for the longest possible time.

While traditional investing (dedicating a portion of your income each month) benefits from compound returns, it fails to take full advantage of them.

With leveraged investing, you contribute a much larger amount on day one and the whole amount can grow for the full amount of time. The effect of compound returns is much stronger with leverage which can result in better investment results over the long term.

2. Tax deductibility: Since the interest you pay on a loan reduces your investment return, it’s important that you pay as little interest as possible. However, the interest you pay on an investment loan is generally tax deductible. This reduces the overall cost of this strategy.

Ideal Candidates for Investment Loans:

You may be well suited for an investment loan if you:

  1. Currently make regular contributions to your investments, and have stable cash flow.

  2. Have a long-term investment horizon.

  3. Are comfortable with a higher amount of risk.

  4. Have experience investing.

Working with Companies You Know & Trust

TESTIMONIALS

What our clients say:


"Found about this through Tiktok but as most I was intrigued and had questions. In my zoom meeting I had every question answered. Very informative, personable and knowledgeable team that's there to help you understand if this is a good fit for you and your portfolio.

So happy with this meeting. Time well spent. Looking forward to the follow up." - Michael M

"Very knowledgeable on financial literacy . Patient to answer to all queries. Good advice on options available for insurance policies.

Great talk Tadashi! Keep up the good job of educating the public on how to benefit from day to day finance needs." -

Joseph O

"I am extremely happy to have come across Tad and his team, they are very professional and knowledgeable, this has been a life changing experience and I am sure we will have a long and prosperous relationship.

Thank you Tad and your team.

God bless you all." - Gerardo G.

"I leaned more in one hour than anyone has taught me in my whole lifetime. Tadashi explained everything so clearly and was very patient with all of my questions." - Lisa F

"Tadashi was professional and answered all my questions" -Bryan S

"I learned a lot today as what my investments can do for me. It was a very pleasant experience"-

Linda R

Connect With the Most Trusted Sources for Sound Advice

For More Financial Content Follow Our Socials Below