March 26, 2020 Advanced Investing Personal Wealth The Rational Reminder Podcast 91: Tax Efficiency & Leverage: The Smith Maneuver with Robinson Smith The Smith Maneuver was developed by Fraser Smith as a smart way for Canadians to convert a traditional, non-deductible mortgage into a deductible mortgage by systematically re-borrowing to invest. Today we are joined by Fraser’s son, Robinson, to talk about the maneuver, his father’s legacy and explain how you can use it to your financial advantage. In his book, The Smith Maneuver, Fraser laid out a plan for working the mortgage and debt system to your advantage, by deducting the interest on a mortgage, while still being able to claim exceptions on the sale of a house. Robinson does a great job of explaining the procedure for implementing the strategy and all the possible ways to use it. He talks about risk, different kinds of debt and investor diligence, giving everything you need on the subject! Robinson believes in his father’s vision of bringing the practices of the wealthy to the average Canadian and allowing wealth creation through leveraging possibilities instead of the inertia and fear that most people choose. For the last part of our conversation, Robinson gives us some examples from the Smithman Calculator, illustrating just how effective the system can be! Join us on the Rational Reminder Podcast today, to get it all! Subscribe to the Rational Reminder podcast Key Points From This Episode: An explanation of the Smith Maneuver and its usefulness to Canadians. [0:03:40.6] A step by step walk-through of the implementation of the Smith Maneuver. [0:07:15.1] The possibility of refinancing a credit line for lower mortgage rates. [0:10:18.0] How to think about maintaining more leverage with mortgage payments. [0:13:04.9] The risks of debt, minimizing withdrawal amounts and reversing the maneuver. [0:16:48.6] Robinson and his father’s investor experiences around the 2008 market crash. [0:18:35.3] Why leveraging smart debt is so much better than gambling on a startup! [0:20:24.2] The regulatory risk that is present when performing a Smith Maneuver. [0:22:04.1] Risks that accompany not applying these strategies that Robinson is espousing. [0:24:47.6] The influence of your tax rate on the efficacy of the Smith Maneuver. [0:27:23.2] The diligence that is needed in the implementation of the Smith Maneuver. [0:29:15.0] How the Smith Maneuver can address poverty issues that plague Canada. [0:33:39.8] Running through the input process and rewards on the Smithman Calculator! [0:34:51.8] Net-worth improvements and cash-flow dams from re-borrowing. [0:38:41.7] How Robinson defines success in his mission to help Canadians. [0:41:26.3] Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Robinson Smith — https://smithman.net/about-us/ Fraser Smith — https://www.canadianmortgagetrends.com/2011/09/remembering-fraser-smith/ The Smith Maneuver — https://www.amazon.com/Smith-Manoeuvre-Fraser/dp/1553696417 Smith Consulting Group — http://www.smithconsultinggroup.com/ Simon Frazer University — https://www.sfu.ca/ Master You Mortgage for Financial Freedom — https://www.amazon.com/Master-Your-Mortgage-Financial-Freedom/dp/1999171608 Jimmy Pattison — https://www.jimpattison.com/ Save-On-Foods — https://www.saveonfoods.com/ Ripley’s Believe It or Not — https://www.ripleys.com/ Guinness World Records — https://www.guinnessworldrecords.com/ HELOC Rule — https://www.debt.org/real-estate/mortgages/home-equity-line-of-credit/ Ian Ayres — https://law.yale.edu/ian-ayres Barry Nalebuff — https://som.yale.edu/faculty/barry-nalebuff Share: Facebook Twitter LinkedIn Email IIROC AdvisorReport
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