http://www.thefinancialblogger.com/the-smith-manoeuvre-2nd-part/ This is where your finance takes place Thu, 09 Feb 2012 04:02:52 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.thefinancialblogger.com/the-smith-manoeuvre-2nd-part/comment-page-1/#comment-268 The Financial Blogger Thu, 26 Jul 2007 10:45:15 +0000 http://www.parlonsfinance.com/blog/?p=28#comment-268 Hi Scott, You will have to ask your Manulife broker to setup your HELOC between 2 accounts (A and B). Let's say you have 100K mortgage in account A and $0 owing in account B as you are just started the SM. On account A, you pay the interest plus $500 on a monthly basis. After one month, your account statement will show account A : $99,500 and account B : $500 owing. At the end of the first year, you will have account A : $94K, account B : 6K. This is really important as the interest charged on account B is tax deductible. Therefore, you must need to keep track of it. Having a separate account and interest statement will get your life much easier. Please feel free to contact me if you have any other questions. Cheers, FB. Hi Scott,
You will have to ask your Manulife broker to setup your HELOC between 2 accounts (A and B).
Let’s say you have 100K mortgage in account A and $0 owing in account B as you are just started the SM. On account A, you pay the interest plus $500 on a monthly basis. After one month, your account statement will show account A : $99,500 and account B : $500 owing. At the end of the first year, you will have account A : $94K, account B : 6K.
This is really important as the interest charged on account B is tax deductible. Therefore, you must need to keep track of it. Having a separate account and interest statement will get your life much easier.
Please feel free to contact me if you have any other questions.
Cheers,
FB.

]]> http://www.thefinancialblogger.com/the-smith-manoeuvre-2nd-part/comment-page-1/#comment-265 Scott Wed, 25 Jul 2007 15:00:20 +0000 http://www.parlonsfinance.com/blog/?p=28#comment-265 I am in the process of setting this up with Manulife, when this gets setup do I need to setup account B or is this automatic? When I make my mortgage payment this of course reduces my principal owing on the mortgage however when I withdraw does this now show up in account B as debt? I am in the process of setting this up with Manulife, when this gets setup do I need to setup account B or is this automatic? When I make my mortgage payment this of course reduces my principal owing on the mortgage however when I withdraw does this now show up in account B as debt?

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