Has anyone here tried the SMith Manouvre?
 

Anyone here with any experience with this?

the only real benefit i can see is turning a non tax deductible mortgage into a tax deductible one.

Risks, the borrowing of money to invest in a fixed income fund which could be good or turn into shit.

has anyone done this? has anyone thought out all the logic?

I clicked this thread thinking it was some sort of weird sex-move like "the angry dragon" or something. This thread DOES NOT deliver... :(

:1orglaugh:1orglaugh:1orglaugh

hehe hardy har

im really hoping to find someone who has looked into this or is doing it etc

I invented the Smith maneuver.

...but it's a lot different than the one you've described. :D



But with regard to taxes and mortgages, it's worth pointing out that although your mortgage per se isn't tax deductible, your mortgage interest is.

As well, if any part of your home is considered office space (as in work space) you can write off that % of your utilities and other costs and applicable expenses... as I do every year. So in a way albeit indirectly your mortgage is at least marginally covered with write-offs.

But no, I'm not familiar with any maneuver designed to allow one's entire mortgage to become tax deductible.

Got a link?

I invented CDSMITH Manure.

http://www.smithman.net/home.html

i didnt want to link to a forum but if you look up smith manouvre in google..you will find some people talking about it.

it also brings in some heavy life insurance

Careful, it's so toxic I hear it'll blow up a meth lab.

Unconfirmed but I wouldn't chance it.



Phoenix thanks, I'll have a look at those links. :D

This here is a pretty good read... http://www.canadiancapitalist.com/20...noeuvre-debate

Still looking at other stuff on this though...

In this article: http://www.milliondollarjourney.com/...-manoeuvre.htm
it says "Maxing out your RRSP and investing for the long term will outperform the Smith Manoeuvre."

I tend to agree. One of the most amazing and productive ways of putting your money to better use for you involving RRSP's is this:

Temporary loan strategy:
(How to make a 50% higher RRSP contribution for the same money)

Example --
- Let's say you can afford $1,000 savings and decide to get an RRSP.
- You borrow $536 to go with your usual $1,000 RRSP contribution and you make an RRSP contribution of $1,536
- No payments are due on the loan for 6 months. The rate is 7%.
- You get a tax refund of $545 because of the RRSP.
- You use the refund to pay the loan off including $9 for 3 months interest.
- You have now put $1,536 in your RRSP for only $1,000.
- Your RRSP growth is 50% more than without the Temporary Loan.


I love this strategy, and wish I had of figured it out or been told about it years ago. I only ran across it last year.

I clicked this thread too thinking the same way. :1orglaugh:1orglaugh:1orglaugh