Comments on: Another New Financial Product I’d Like to See http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/ Investing and Personal Finance Sat, 11 Sep 2010 00:43:11 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: <![CDATA[Mr. Cheap]]> http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/comment-page-1/#comment-1316 Wed, 30 May 2007 20:29:03 +0000 http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/#comment-1316 "Tracking specific debts (sub-accounts) Sometimes, you may want the option of segregating some of your borrowings to track them separately. You can set up sub-accounts with your Manulife One account. For example, if you wanted to borrow from the account for investment purposes and track the interest on those borrowings separately (to deduct for tax purposes), you could set up a sub-account to do that. " from their website http://www.manulifebank.ca/canada/mBank.nsf/Public/mone_day-to-day is exactly what I was thinking of. Thanks! “Tracking specific debts (sub-accounts)
Sometimes, you may want the option of segregating some of your borrowings to track them separately. You can set up sub-accounts with your Manulife One account. For example, if you wanted to borrow from the account for investment purposes and track the interest on those borrowings separately (to deduct for tax purposes), you could set up a sub-account to do that. ” from their website http://www.manulifebank.ca/canada/mBank.nsf/Public/mone_day-to-day is exactly what I was thinking of.

Thanks!

]]> By: <![CDATA[Mr. Cheap]]> http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/comment-page-1/#comment-1315 Wed, 30 May 2007 20:25:44 +0000 http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/#comment-1315 Hi Vasile, yes as I mentioned in the posting: "this is quite similar to a readvanceable mortgage" (the readvanceable mortgage is the core of the Smith Maneuver). There are many ways to build on this idea (paying down your non-deductible mortgage and replacing it with tax-deductible investing debt). Fraser Smith has been the only person bold enough to slap his own name on it. Manulife One sounds good, although you're right that prime is quite expensive for a mortgage :-(. Hi Vasile, yes as I mentioned in the posting: “this is quite similar to a readvanceable mortgage” (the readvanceable mortgage is the core of the Smith Maneuver).

There are many ways to build on this idea (paying down your non-deductible mortgage and replacing it with tax-deductible investing debt). Fraser Smith has been the only person bold enough to slap his own name on it.

Manulife One sounds good, although you’re right that prime is quite expensive for a mortgage :-( .

]]> By: <![CDATA[Vasile]]> http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/comment-page-1/#comment-1314 Wed, 30 May 2007 20:07:49 +0000 http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/#comment-1314 What you're trying to do is sometimes called "Smith Manoeuvre". You pay 25% downpayment and take a 75% mortgage, then get a HELOC secured by your equity and invest 5% with money borrowed from that HELOC. You can check Manulife One, which combines a mortgage, a HELOC and a few (5?) checking accounts (you can use them for "tagging" different kinds of expenses, e.g. investments), all managed together. It has it's own price: the mortgage rate is quite high, at prime, if I remember correctly. What you’re trying to do is sometimes called “Smith Manoeuvre”. You pay 25% downpayment and take a 75% mortgage, then get a HELOC secured by your equity and invest 5% with money borrowed from that HELOC. You can check Manulife One, which combines a mortgage, a HELOC and a few (5?) checking accounts (you can use them for “tagging” different kinds of expenses, e.g. investments), all managed together. It has it’s own price: the mortgage rate is quite high, at prime, if I remember correctly.

]]> By: <![CDATA[Mr. Cheap]]> http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/comment-page-1/#comment-1313 Wed, 30 May 2007 19:15:28 +0000 http://www.moneysmartsblog.com/another-new-financial-product-id-like-to-see/#comment-1313 Another useful feature of this would be if two people were buying property together (say a couple or business partners), but they wanted to keep their contributions separate. If one of them prepaid on their portion, it'd be possible to keep a record of the difference (and that would help to split it fairly when they decide to sell) Another useful feature of this would be if two people were buying property together (say a couple or business partners), but they wanted to keep their contributions separate. If one of them prepaid on their portion, it’d be possible to keep a record of the difference (and that would help to split it fairly when they decide to sell)

]]>