What Is It?

This structure is a strategy that utilizes borrowed capital to create assets and to increase tax deductions. This new wealth can be used to effectively reduce income taxes, provide access Stagnant Capital®, and effectively grow a portfolio.

Is This For You?

At a minimum, investors must have a moderate knowledge of investing and maintain a medium risk tolerance. Potential candidates to take advantage of this program wish to maximize their savings potential, reduce their income taxes and create wealth. Suitability is individual and will be assessed based on investor knowledge and understanding of the risks associated in borrowing to invest*.

Benefits to You

  • Tax Advantaged Income
  • Increased Tax Deductions
  • Effective Borrowing Rates
  • Multiple Lenders
  • Multiple Investment Products**
  • May work in harmony with the ISWM Tax Deductible Mortgage Structure

Products Involved

  • National Canadian Lenders
  • Segregated Funds

*The use of borrowing to invest in securities can have both a positive and negative impact on the value of those securities. There is a magnification of the investment risk where a leverage strategy is used. Even where returns on leveraged investments are positive, interest costs may exceed the returns received. Whether the investment returns are positive or negative, you must still pay back the loan plus the agreed interest. A leverage strategy is not necessarily suitable simply because it is being used as a means to take advantage of tax deductions; there is specific tax legislation governing the deductibility of interest and if the conditions are not complied with, it may lead to reassessment.

**Insurance products offered through Diamond Tree 1000 Insurance Agency Inc. or Investors Source Insurance Ltd.

The Brochure

Click on the or icons in the embded pdf below to print or download the brochure.

Note: if the brochure pdf does not appear below then you can download the brochure by clicking here.