A Million Dollars Of Debt

May 5, 2020 | Blog, Investments, Mortgages and Debt | 0 comments

Would you work with a financial planner that was a million dollars in debt? Before you say “No”, read the full story.

This is not your father’s economy.

This is not your father’s economy. And it shouldn’t be your father’s saving strategy either. When our parents were paying off their mortgages in the 1980s this advice didn’t make sense (to use debt to your advantage) because interest rates weren’t low, they were super high. Today savers are losers. Saving money in the bank will destroy your wealth given the current government low interest rate environment.

Everyone has an opinion on how to build wealth.

You’ve got the pro stock market folks. And then you’ve got the real estate guys. They often don’t like each other. People in the stock market are always going on about how the real estate market is a bubble ready to burst. Folks in real estate will always bring up Nortel and the 2008 market crash that decimated their savings. These discussions aren’t particularly helpful … I however am.

Taking advantage of current government policies.

If you watch government policies and look at current strategies being used within our financial system the answer is clear. Loading up on debt is the way to go. This may seem scary at first … but don’t stop reading now. Hear me out.

Governments have hit the debt wall.

There is a major structural problem with our economy. How can it be that we have had low interest rates for 5 years and there’s no big recovery going on? It’s not right. It’s the sign of a bigger problem. New spending by governments isn’t helping the economy the way it used to. In fact, it’s barely helping it at all.

But this I know to be true …

  1. Governments are full of debt.
  2. They have no way to pay off this debt other than raising taxes or trying to artificially make the debt look smaller by inflating the economy with low interest rates.
  3. They’re going to use more debt to grow the economy.
  4. They’re going to use debt as a policy tool.

So if you can use good debt to buy good investments, like rental properties … not the $Million dollar 3-bedroom home in the beaches, but a similar 3-bedroom home in Durham for $350K. And if you can rent these properties out to cover your costs and even leave a little extra then you’re using debt and the current low interest rates to your advantage. As the use of debt grows your wealth grows as well.

But some of you are saying Nooooo …. I don’t want to be a landlord. That’s okay … we have turnkey Real Estate Investment Fund as well. And this is available in your RSP or TFSA.

So if you would like to be smart about your use of debt and buy assets that pay for themselves then I can help.

I am using debt to my advantage just like the wealthy do. I don’t mind telling you, in fact I will boast about the fact, that I (“we” …. need to include my husband) have over a million dollars of debt. However, all of that debt is good debt. All of it is tax deductible debt. All of it is attached to either an investment property or mortgage investment or stock market portfolio. So I am not just preaching something. I am living it.

So the question remains … would you like to work with a financial planner that has over $1 Million dollars in good debt? That owns 5 rental properties. That invests in cash flow opportunities. If the answer is yes … you gotta drop me an email … Kathleen at vws@live.ca

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