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Tax/Mortgage/Investment seminar for personal investors with non-deductible mortgages
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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