My smith manoeuvre has been around for approximately 15 months. Total deposits from HELOC : $96,725 Brokerage Account balance : $116,441.87 Divs rec’d : $1370 CAD approx Here’s the interesting part- performance up to today. Total interest paid ; ~$2,000 / 15 mos (Tax rebate from interest; $593) Actual interest cost : $1,407 Monthly : Pre-rebate interest: $133.33 / month After tax rebate interest : $93.80 Total profits :$19,716.87 / 15 mos Avg profit per month: $1,314.40 For those of you still with me after so many numbers sans-emojis; I averaged $1,314.40 per month of profit, while paying an average of $93.80 in interest charges. Points to note, with a few emojis : ➡️Projected FORWARD dividend yield and interest are more than double the amount displayed above - I deployed cash aggressively last year so both the dividends AND the interest charges will scale up in kind. ➡️Forward interest charges are approx $415 a month, capitalized (aka paid for by the HELOC itself). Future growth is hard to predict, so I’ll just state that with the div yield of the portfolio being approx 1.9%, the interest sitting at 3.10%, that I only need about 1.2% to make the strategy profitable. Pretty low hurdle rate if you ask me ! Please feel free to poke me for reminders on this account. Ill keep it open for my fellow finance / investing peeps. 🐥
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33 Comments
Moe @moementumfinance · 5mo
Thanks for this update Kyle! Keep up the great work man. So great to see your portfolio crushing it sans ou avec emoji 🫡💪
Ur Habibi@learningwbeat · 5mo
Thanks for this, I am thinking too however I am lock in until Nov 2027 with my mortgage. I don't think they will wave off 7k penalty. Did you combined your HELOC with mortgage? What's the best approach? From my understanding big banks are not doing 1:1 ratio i think it's 1:0.75. You getting a new follower today.
Mr Financial@mr.financial · 5mo
This is a great update to give those thinking of it prospective. You're playing the long game, and that's where equities shine. If your portfolio goes negative for a decade, it still wouldn't matter. Keep the run way long and the portfolio will take off 😁
Le Corb@lecorb · 5mo
@kgcottawa nice post! Thanks for sharing. To clarify, you borrowed $97,725 from your HELOC to invest in a non-registered account, correct? And so far including dividends and in-realized capital gains your non-registered account is $116,441.87? Is your profits including un-realized capital gains? How long until you have re-paid the HELOC? Thanks
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