We Both Borrowed to Invest through Smith Manoeuvre
What does the Smith Manoeuvre actually look like when youâve been doing it for years? In this video, @kgcottawa and I go beyond the theory and share our own real-world experiences implementing the Smith Manoeuvreâincluding how we got started, why we decided to use it, how we invest the borrowed money, how we handle the HELOC interest, dividends, taxes, and adjusted cost base, and what we would do differently if we were starting over. đ° We also open up our portfolios and share the numbers behind our strategies. Kyle walks through his Smith Manoeuvre portfolio, including his Scotia STEP setup, roughly $141K of net deposits, his XEQT position and individual Canadian stocks. I also share my own Smith Manoeuvre portfolio, which is now worth roughly $242K against approximately $141K of borrowing, with the portfolio invested primarily in $XEQT. We discuss why we both favour long-term investing, why weâve experienced periods where the portfolio was in the red, and why a strategy like this requires the ability to stay invested through major market declines. 𧞠We also get into some of the less excitingâbut extremely importantâparts of the strategy: tracking interest, tax deductions, eligible dividends, return of capital, adjusted cost base, keeping records clean, and working with professionals when you're dealing with leveraged investing. This is not a âget rich quickâ strategy, and neither of us is presenting this as financial or tax advice. Itâs simply a transparent look at how two investors are approaching the Smith Manoeuvre with their own money, what has worked for us, what hasnât, and what weâve learned along the way. If youâre considering the Smith Manoeuvreâor already doing itâweâd love to hear from you: Would you rather start with smaller monthly amounts, or invest a larger lump sum upfront? đ¤ â ď¸ Disclaimer: This video is for educational and entertainment purposes only and reflects our personal experiences. It is not financial, investment, mortgage, or tax advice. Leveraged investing involves significant risk, and everyoneâs circumstances are different. Consider speaking with qualified professionals before implementing the Smith Manoeuvre. https://www.youtube.com/watch?v=flADDmGrLmY
256 views
0 Comments
Join the conversation with 500,000+ other investors đ¸
Create an account to get access to everything Blossom has to offer!
đ Personalized algorithm based on your investing style, experience level and interests
đ Powerful portfolio and dividend tracking tools
đ See what top creators and others in the community are investing in
