just found some leaveraged mutual funds - these are pretty sweet.
from manulife. (canadians only)
you're allowed upto $50,000 per person with NOTHING DOWN, they lend you the money and you just pay the interest at 1% above prime to play the market with it. the interest is a 100% write off. in 10 years manulife GUARENTEES the value of the depost on the investment fund - so all you are risking is the interest over 10 years and you got to write that off so if you're in the maximum tax bracket that's 50% free.
it's about $260/month for $50,000 - and they let the wife get one too so we borrowed $100,000 for $520/month.
in 10 years (assuming no change in interest) we invested $62,400 - but wrote off over $30,000. so over 10 years we really only invested $30K.
over 10 years the chances are ( according to most 10 year periods in holding funds) we'll get $200,000 back - subtract the $100,000 owing and have $100,000 in the fund - subtract what we invested and we got $60,000 outa it.
if the marklet crashes we still got a write off over the 10 years - we can cash out ANYTIME and can stay longer then 10 years or shorter if we want.
you can invest more than this too but you need to put some money upfront - they leaverage 4X afetr the initial no investment $50K.
I was impressed. it's not where I's stick all my money - but it's nice to have some relativly liquid investments like this.
from manulife. (canadians only)
you're allowed upto $50,000 per person with NOTHING DOWN, they lend you the money and you just pay the interest at 1% above prime to play the market with it. the interest is a 100% write off. in 10 years manulife GUARENTEES the value of the depost on the investment fund - so all you are risking is the interest over 10 years and you got to write that off so if you're in the maximum tax bracket that's 50% free.
it's about $260/month for $50,000 - and they let the wife get one too so we borrowed $100,000 for $520/month.
in 10 years (assuming no change in interest) we invested $62,400 - but wrote off over $30,000. so over 10 years we really only invested $30K.
over 10 years the chances are ( according to most 10 year periods in holding funds) we'll get $200,000 back - subtract the $100,000 owing and have $100,000 in the fund - subtract what we invested and we got $60,000 outa it.
if the marklet crashes we still got a write off over the 10 years - we can cash out ANYTIME and can stay longer then 10 years or shorter if we want.
you can invest more than this too but you need to put some money upfront - they leaverage 4X afetr the initial no investment $50K.
I was impressed. it's not where I's stick all my money - but it's nice to have some relativly liquid investments like this.
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