Entries by The Smith Manoeuvre


The Smith Manoeuvre provides three benefits simultaneously.  Firstly, it improves your cash flow by reducing your tax bill.  Annual tax deductions mean that you pay less tax, which is lovely.  Secondly, it enables you to pay off your expensive, non-deductible mortgage much faster than paying it off conventionally.  This too is lovely – very lovely.  […]

Many Canadian Workers Unprepared for Retirement

Canadian HRReporter just put out an article that sums up the Canadian retirement landscape wonderfully.  Lack of personal preparedness, lack of a plan – personal or corporate, unrealistic retirement expectations, and mis-aligned corporate support for employees and employee goals and needs. Retirement Regret TD Bank surveyed over 1,100 people and the result was that over […]

Mortgage Debt – Good or Bad? That Depends!

The origin of the word ‘mortgage’: ‘mortuus’ (‘dead’ – Latin) —> ‘mort’ (‘dead’ old French) + ‘gage’ (‘pledge’ old French) = ‘Mortgage’ (‘Dead Pledge’ old French) —> ‘Mortgage’ (late Middle English) So basically, ‘death pledge’. And ain’t it apt? Yes…yes it is. What Does Your Mortgage Cost You? This is the math that nobody except the bank […]

The Sequential Approach to Your Mortgage & Retirement

The Sequential Approach to your mortgage and your retirement – there is a better way! Here’s the problem at hand: you have an expensive mortgage that needs to be paid and you have a retirement fund that needs to be funded.  So two money-related goals that are quite important.  Certainly neither of them can be […]

Dispelling the Myths of Borrowing to Invest

You may have read elsewhere that we here at The Smith Manoeuvre contend that there is no ‘leverage’ involved in the strategy.  The reason for this is that the leverage has already occurred prior to the Canadian homeowner implementing the strategy.  Think about it – the homeowner already borrowed when they bought the house.  The […]

Emergency Reserve

Do you need three-month’s salary as an emergency reserve? It is conventional wisdom and practice in Canada to set aside 3-6 months of salary as a cash (or near-cash) reserve in case there are unexpected emergencies or issues which crop up in life.  And crop up they will!  But while likely everybody will agree that […]

Cash Flow Dam Strategy

Do you own a proprietorship (home-based business or rental property)? When most small businesses get started, part of the excitement is going to the bank to open a business account. You order company chequebooks and deposit books. The money starts to flow in to your new bank account and at the end of the month you pay […]