Smith Manoeuvre

How to use smith manoeuvre with dividend investing

Mastering the Smith Manoeuvre and Turning Your Mortgage Into a Tax Deductible Investment Loan

By FT / April 19, 2020 /

By FT | April 19, 2020 |  We’ve been writing about the Smith Manoeuvre here at Million Dollar Journey for over a decade now!   Since I have personally implemented the Smith Manoeuvre and provided various updates on my tax deductible investment loan + Canadian dividend stocks strategy over the years, we’ve collected quite an assortment…

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Running out of HELOC Space with the Smith Manoeuvre

By FT / October 7, 2019 /

If you’ve been following the blog for a while, you may have heard about the Smith Manoeuvre. At a high level, it’s a long-term investment strategy for investors with high risk tolerance.  Essentially, it’s where an investor borrows against his home (using a HELOC) to invest in the stock market, business, and/or real estate.  The plan…

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An Investment Loan and Excess Cash

By FT / July 12, 2010 /

Back in March 2009, I posted about what happens to the Smith Manoeuvre strategy once the mortgage is paid off.  From that post, I listed 3 solutions: Keep the investment loan forever Pay off the investment loan over time Pay off a portion of the investment loan For us, it will probably be a combination…

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Adding (non borrowed) Cash to a Leveraged Portfolio

By FT / November 2, 2009 /

As the installment portion of my mortgage is soon coming to an end, lately I’ve been thinking about my leveraged portfolio and how I’m going to utilize it going forward.  I’ve written about the various options available to leveraged investors once their mortgage is paid off, but I didn’t get into the investment plan going…

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Tax Deductible Mortgage Plan (TDMP) – Worth It?

By FT / July 6, 2009 /

There was comment in the popular Smith Manoeuvre thread about comparing the tax deductible mortgage plan (TDMP) to the traditional SM.  Here are my thoughts on the issue. What is TDMP? The TDMP is a basically a way for someone interested in leveraging their home to invest to hand off the whole setup.  That is,…

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Defined Benefit Pension vs Defined Contribution Pension

By FT / May 6, 2009 /

With retirement being a hot topic in personal finance, I get a lot of questions regarding the differences between a defined benefit pension plan and a defined contribution pension plan.  Even though both have similar names, they have vast differences as to what it means for the retiree. Defined Benefit Pension (DBP) A defined benefit…

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Leveraged Investing and Prime Interest Rates

By FT / November 12, 2008 /

In my last Smith Manoeuvre update, a reader commented as to why would I invest in any stocks with yields lower than my interest rate.  To answer the question, to me, it’s not only about the yield, but also the strength of the underlying dividend.  You see, if the company is paying out an above…

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The Smith Maneouvre during a Market Crash

By FT / October 9, 2008 /

There has been much concern over the viability of the Smith Manoeuvre or a leveraged investment strategy during this recent bear market.  The main concerns are due to a couple of reasons, first, sinking equities, second, the increase of variable rates due to the credit crunch. In addition to this, one of the more popular…

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