Mark LeClaire

• 18 years experience assisting people with their investments

• Certified Financial Planner

• Chartered Financial Planner

• Personal Financial Planner

• Canadian Investment Manager

My Value Proposition

18 years of experience

3000 mutual funds all on a no-load basis

Personalized rates of return on your portfolio

Templeton AIC Industrial Allinance

Mackenzie GGOF Front Street

AIM-Trimark Acuity Fidelity

Northwest CI AGF

CIBC TD Opensky

Tonight you will learn how to:Tonight you will learn how to:

• Get FREEFREE tax refunds from the CRA

• Pay off your mortgage faster

• Build an investment portfolio

The Wealth PyramidThe Wealth Pyramid

The Problems…The Problems…

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

The Solution…The Solution…

History of THE SMITH MANOEUVRETHE SMITH MANOEUVRE

What is THE SMITH MANOEUVRETHE SMITH MANOEUVRE

THE SMITH MANOEUVRE is a financial strategy designed to convert the non-deductible interest debt of a house mortgage to the deductible-interest debt of an investment loan, which simultaneously ensures the building of a free and clear investment portfolio.

A picture is worth A picture is worth a thousand words…a thousand words…

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

GOOD DEBTBAD DEBT

Another 1000 words…Another 1000 words…

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

tidbit

How much do you have to earn to pay off a $200,000 loan?

Read it and weep…Read it and weep…

• You need to earn this much: $700,402

• You pay this much income tax: $280,161

• You have this much left: $420,241

• You pay this much bank interest: $220,241

• Pay back the original loan: $200,000

$700,402 !!!

Is this legal?Is this legal?

The Four Steps

Plain Jane Smith Manoeuvre

1. Re-borrow and invest any paydowns on your first mortgage.

2. Apply tax refunds against your first mortgage then immediately re-borrow and invest the same amount.

The Four Steps

Enhanced Plain Jane 3. Cash in and apply current paid up

assets against the first mortgage in the morning, re-borrow and invest the same amount in the afternoon.

4. Divert any monthly savings or investment programs against the first mortgage, and immediately re-borrow and invest the same amount.

case history:

Quantify the value of THE SMITH MANOEUVRE

for the Blacks.

The BlacksThe Blacks

• $200,000 at 7% for 25 years

• Both work, $100,000 per year

• 40% tax bracket

• $50,000 rainy day fund

• Adding $500 per month

• 40 years of age, 2 kids and a dog

Future value for Future value for the Black’s current the Black’s current

investment program?investment program?

FV of $50,000 for 25 yrs $541,735

FV of $500/mth for 25 yrs 663,417

$1,205,152$1,205,152

What if they did What if they did THE SMITHTHE SMITH

MANOEUVRE? MANOEUVRE?

Results of the Four Steps

Plain Jane

After Step 1 $214,207

After Step 2 309,882

Enhanced

After Step 3 1,209,709

After Step 4 1,962,770

$1,962,770$1,962,770

THE SMITH MANOEUVRE$1,962,770

The difference$757,618

The Black’s way$1,205,152

For the Black’s, For the Black’s, this is a decision worth this is a decision worth 3/4 of a million dollars!3/4 of a million dollars!

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE

Is your mortgage tax deductible?

THE SMITH MANOEUVRE$1,962,770

The difference$757,618

The Black’s way$1,205,152

Lets summarize…Lets summarize…

“Procrastination

is the enemy of your

financial success”

F. Smith