Live Smith Manoeuvre Example, July update

You might want to consider just using the net amount of the interest in your calculation – ie subtract the tax rebate you will get next year.

Why don’t you put all the money in uranium stocks??

Mike

Hi FP,
I’ll definitely consider the tax rebate at the end of the year. In the mean time, as I do not receive any cheques until the end of the year, I prefer to use the real cost of interest that affects my cash flow.

Funny remarks on uranium stock . I already have Paladin (PDN.TO) in my regular portfolio. I tend to be more conservative when I leverage.

Hello FP,

Are you using capital structure funds, so you don’t have to pay capital gains taxes, when you switch funds?:wink:

Hi Brian,
Honestly, I do not know about capital structure funds. Would you mind elaborating on this?
It seems pretty interesting (any time I can save taxes, I’m in!).

Thx!

FB – capital structure or capital class funds have a slightly higher MER but they allow you to switch between different funds in the same structure without incurring a taxable event. I think most, if not all of the big mutual fund companies have them. Generally the class funds are the same funds as their regular products.

Mike

FP, thx for the info!
So if I understand correctly, I pay more in MER to pay less taxes… seems like there is a cost of opportunity to consider!
Cheers,
FB.