Pros and cons of borrowing to invest in dividend stocks

Pros and cons of borrowing to invest in dividend stocks

Borrowing to invest in dividend stocks may be a good decision if you meet these six criteria, like using a lower-risk investing strategy
Borrowing to invest can make sense for some investors under certain circumstances. We think you’ll benefit most from this buying opportunity by sticking… Read More

Q: Pat, I am thinking of employing the “RRSP meltdown strategy.” In my case, though, I’m thinking of using your newsletters to choose the stocks I purchase with borrowed funds (rather than losing fees to a broker/advisor). What are your thoughts regarding this approach to an RPSP meltdown?

A: There are times when you may want to withdraw money from an RRSP. This has spawned one strategy, the RRSP meltdown, that can bring you more risk than reward.

Here’s how the RRSP meltdown works:

When you take money out of your RRSP, you have to… Read More

RRSP meltdown strategies could jeopardize your retirement

RRSP meltdown strategies promise to ease your tax burden on withdrawals, but these complicated manouvres are usually more lucrative for brokers than for investors
Investors sometimes ask us what we think of the so-called RRSP meltdown. This is a strategy that would let them make withdrawals… Read More

How borrowing to invest can be a good strategy

How borrowing to invest can be a good strategy

There are reasons for and against borrowing to invest, but the primary benefit is that it’s a perfectly legal tax shelter.

Borrowing to invest can be a highly effective tax shelter. You deduct your interest expense against your current income. And at the same time,… Read More

Is borrowing money to invest a good idea?

Is borrowing money to invest right for you? The risks may not be worth the reward.

With interest rates still near historic lows, borrowing money to invest continues to look attractive. That’s especially true if you borrow to buy some of the best Canadian dividend stocks,… Read More

The reverse mortgage pitfalls you need to know about

Canadian seniors may borrow on their home equity in the form of a reverse mortgage—but should they?

Money lenders are always coming up with innovative ways for you to borrow money. One such innovation is the reverse mortgage.
Interest in reverse … Read More