Leveraged Loans

 

Leveraging, or borrowing to invest, can be a powerful investing tool to increase wealth as well as to decrease taxation on an investment portfolio.

While you can't write off investment loans used to contribute to an RRSP, interest on loans to fund investments in a non-registered or taxable portfolio is generally tax deductible.

Leveraging can increase the rate of return earned by your portfolio. It is important to realize though that a leverage loan is a two-edged sword. It not only magnifies gains in up markets, but can also magnify losses in down markets.

Leverage investing is not for everyone, WPG can help determine whether leverage investing is right for you and help in securing leverage loans and creation of your investment portfolio.