How to Build a Better Financial Future

Planning for retirement is something everyone should be doing. The Smith Manoeuvre is one strategy you can use to make sure you and your family are well looked after financially.

I am self-employed and I will not get a pension. Due to this, I have spent the last five years researching ways that I can build a retirement plan for myself and to learn how I can help my family.

I wanted to take a moment to share what I have learned.

The Smith Manoeuvre

There is a strategy that revolves around your mortgage that can save on taxes and allow you to build a far larger retirement fund.

It focuses on making it so I can write off (tax deduction) the interest I pay on my personal mortgage as fast as possible and save for retirement earlier.

Here is the crazy part. Over thirty years I can create an extra $670,000 in tax deductions and reduce my tax bill by $300,000 (this is not because I am self-employed but rather because of making the interest tax deductible).

That alone is enough for me to want to implement the strategy because with two kids I need all the help I can get!

Where things get really exciting is if I reinvest my principal paydown (debt I pay off on my house) and the tax refunds I get (due to positioning my mortgage interest as being tax deductible).

By reinvesting the principal paydown and tax refunds, assuming an 8% return over 30 years (I’ll be 61) the investments would grow to $2,240,000 and the total net worth created for retirement would be nearly $1,700,000.

Plan for Retirement

I do not know about you but I am worried the dream of retirement is only going to get harder to reach. Housing will be more expensive along with food, tuition, utilities ect.

I am trying to do everything I can while I have time to position my kids to have a head start when they are adults.

I figure if I believe in this enough for my own family I should share it.

I have extra copies of the book (The Smith Manoeuvre by Fraser Smith), if you want a copy send me a message with your address and I will mail you a copy of the book.

If you prefer something to listen to let me know and I can send you a couple podcasts on the strategy.

Keaton Kirkwood

Keaton is a mortgage broker and real estate investor who is passionate about trying to help Canadian’s create financial freedom.

February 22, 2023

Find out more

As mortgage broker’s we are on your team. Our job is to understand your needs, plans and wants in order to understand your mortgage needs. We then look at a number of lenders to find the best products and solutions for you.

During our time in the industry we have learned a number of tips and tricks to help you save money and to pay of your mortgage faster.

If you have any questions or would like a customized mortgage plan let us know!

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