SPEED UP YOUR 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,…

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…

Do You Have a personal Retirement Savings Plan? Do You Want to Turbocharge It?

While many Canadians may not be putting aside a certain amount of their own after-tax cash for their retirement on a regular monthly basis, many are. And if this is you, you may want to consider making your money work more than once. I'm…

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…

Defined Benefit Pension Plans are Going the Way of the Dodo

I have commented at length in other articles, in my new book to be released soon and other media about how few of us Canadians are fortunate enough to have a public or private pension plan.  The majority of us have no pension plan at all. …

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…

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…

INTERVIEW BY THE FRUGAL NORTH - THE SMITH MANOEUVRE Q&A

I had the great pleasure to ask Robinson Smith a few questions about the Smith Manoeuvre (a topic I touched on here) which is a method to create tax deductibility on your mortgage and pay off that loan sooner. For those who don’t know, Rob…

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…

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…