Best Wealth Creation Strategy Available
For the last few weeks I having been saying I wanted to show you the number one way of attaining wealth and it is so simple I am surprised that more people are not using this very important part of copying what the rich do. That’s right, the wealthy use this method of investing because they are using other people’s money, not their own.
First , you only need two things to qualify for up to $100,000, an income and a net worth. With this I can get you a loan from B2B Bank (that’s not your money it’s their money), so it’s “other people’s money”.
The monthly interest cost is about $300. We do not want to pay the principal down because then you’re using your money.
So it’s an interest only loan. Now here is the best part.
When you invest that money and the profits can provide an income all that interest is Tax deductible. So the total cost per year for a $100.000 loan is only $3,600 and you get to deduct that from your income just like you would deduct an RRSP.
So now let’s go to where you invest this money. We choose Segregated funds only sold by a Licensed Insurance broker .Unlike Mutual Funds that have no guarantee, Segregated funds have a 75% guarantee at maturity. They also are credit proof so not even CRA can touch them (great investments for business owners that need protection from lawsuits or owe taxes)… One more thing they also bypass probate, another great reason to own them if you want your money to go to your kids.
So let’s do the math and then you can see why if you do not already have this strategy working for you, you should contact us ASAP to set one up. Let’s say you make just 10% return on $100,000 loan,your profit would be $10,000. So what did it cost you? $3,600, which is Tax deductible.
$10,000 minus $3,600 = $6,400 profit. So now your rate of return is not 10% but because you used other people’s money it’s an outstanding 177.82% return on your money. Yes you made $6,400 profit on a $3,600 investment.
WOULD YOU HAVE MADE THE SAME IN AN RRSP?
Let’s compare this investment with an RRSP had you put your money in an RRSP you would have deducted $3,600 from your income tax. Had you used this strategy your interest is 100% tax deductible so you would end up reducing your taxable income by the same amount. So they both have the same effect on your taxes.
A 10% gain on your RRSP would have grown by $360, compared to a profit of $6,400 had you use the investment loan strategy. The problem with the RRSP is they accumulate into a TAX TIME BOMB where it becomes 100% taxable when you withdraw them and when you die half of it goes to CRA before it goes to your kids. This does not happen with our Investment loan program. Our leveraged investment is capital gains so you save 50% of the taxes. If you’re a business you still have a huge Capital gains deduction to use. Plus I can show you in our next step how to transfer your capital gains to a TAX EXEMPT INVESTMENT WHICH MEANS NO TAXES.
So now you know the basic way to leverage.
Now we add the spice. First of all who says you can only borrow $100,000, many of our clients borrow $300,000 where the cost per month is about $900. So instead of buying RRSPs every year they do this. That 10% return would have created $30,000 extra each year.
What if you already have an RRSP and you finally realize they are bad for your future financial well being.
Many of our clients take the $900 per month out of their RRSPs and use this money to fund their $300,000 investment. The cashing in of RRSPs is 100% taxable but the Tax deduction for the interest cost is exactly the same so one cancels the other out. This way you save future taxes on the RRSPs and no money comes out of your pocket. So this is a much better investment than an RRSP.
One more thing if you have been following us for a while, you know we have averaged 19.59% over the last 10 years.
You also saw from our last email that our funds are up over 20% this year.
Here are the latest figures Asian Pacific 24.50% Global Dividend 22.75%, NASDAQ 21.23% and emerging markets 20.48%
That would put me over 20% for 11 years.
So you could see what would happen if you invested that leverage with us; your 10% return on your $100,000 would be $20,000 and on your $300,000 a $60,000 gain. So you can see how quickly your wealth could grow. Have you figured out the average return? It’s almost 400%. When you compare it to an interest cost of about 3.5%.
So are you still going to buy those RRSPs or come and talk to us about making you wealthy?