As a financial advisor, I come across
many people who simply do not have the
cash flow to maintain their lifestyle
today, and save sufficiently for their
future needs. By making their mortgage
tax deductible, they are using the tax
man to help them save for the future
without any extra cash required. It
simply is the best way to create wealth.
A family earning $60,000 has a future
retirement income need of $40,000 after
tax income. Assuming 25 years until
retirement, annual average inflation
rate of 2.5%, average annual investment
return of 8% and the income to last
for 20 years, they will need a total
of $ 944,248 today or make monthly non-registered
savings of $1,032 to fund the retirement.
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Often this is difficult to do as the
current pay cheque is spent on groceries,
utilities, house maintenance, car, vacations
and… the mortgage payment. Typically
less than required is going to savings.
The Deduct My Mortgage™
strategy involves exchanging your bad
debt (non-deductible debt) with smart
debt (tax deductible debt). This enables
you to build up an investment portfolio
simultaneously as you are paying down
your bad debt; be assured this can be
done with no extra cash flow required. |
