7150 Hawthorne Dr. Unit 104
Windsor, ON, N8T 3N3
Phone: (519) 974-6688
Toll Free: +1 866-973-4846
Fax: (519) 974-7192
Leverage is a strategy where you purchase an investment with borrowed funds. In a rising market, the strategy can greatly enhance the return of an investment. Conversely, when the market falls, the loss on the investment is magnified. Interest paid on borrowed funds is generally tax deductible if the money is borrowed to earn income from a business or property. For example, if you borrow money to buy a mutual fund outside of an RRSP, the loan interest will be tax deductible. Generally, leveraging is a worthwhile strategy if the after-tax rate of return on the investment is greater than the after-tax cost of the loan interest. This and other factors should be discussed with your financial advisor when considering the use of leverage as part of your overall investment program.
Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Seguin Financial Group Ltd. Seguin Financial Group is a trade name used for both mutual fund & Insurance business activities. Banking products and services are offered through referral.