Amazing Money Making Ideas For The Near Year

With the New Year in full swing, it is now time to begin getting your finances back in order. You’ll need to get your taxes filled out and submitted to the IRS. Then, it is time to find ways to generate more money. The options are plentiful, but some methods are far better than others. What methods can be used to generate money in the New Year? You’ll learn about some of the most amazing money-making ideas for 2018 below.

Debt Counseling

First and foremost, you should understand that consumers are always going to face debt problems. Millions of Americans have gotten themselves into debt and they need assistance digging themselves out. There is where you could enter the picture. By becoming a debt counselor, you’ll be able to instruct people how to remove late payments and get their credit score improved in a jiffy. You’ll help improve someone’s life and they’ll be grateful for your assistance. On top of that, you’ll make money every step of the way.

Online Surveys

Over the past few years, online surveys have gained a bad reputation. Nevertheless, they’re still going strong and they can still be a great way to earn a little money on the side. Of course, you’ll need to work diligently to find the survey websites that are actually worth your time. The good thing about online surveys is the fact that they’re accessible to everyone and anyone. Whether you’re fit as a fiddle or you are wheelchair bound, you can still make money with online surveys. They might not turn you into a millionaire, but they’ll help you generate a little extra money from week to week.

Renting Your Home

Do you often find yourself away from your home? If the answer is yes, you should consider putting your home to work for you. Airbnb has become incredibly popular during the past few years and it can help you make a good amount of money for doing virtually nothing. The company will even protect you from property damage! So, you’ll be able to make money and maintain your peace of mind all the while. Just make sure that you’re comfortable with a stranger being in your home, before signing up.

Joining Uber

Uber and other similar companies have managed to attract millions of customers. These companies offer rides to those in need. As long as you’ve got a car and a license, you too can become an Uber driver. This is a great job because you’ll have complete control over your schedule. The only downside is the fact that you’ll have to put a lot of wear and tear on your automobile.

Social Media

Finally, you should understand that social media is now more popular than ever before. If you’re able to establish yourself as a social media influencer, you’ll be able to make a lot of money. You can market other company’s products for them and you’ll make a lot of money. Alternatively, you may want to consider becoming a social media coach or manager for a big company. With social media, the possibilities are nearly endless.

TFSA or RRSP? Cutting through the Confusion

When it comes to choosing between a Tax-Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP), there are plenty of details to keep you up at night. It’s important to look at the pros and cons of each plan, so you can develop a financial plan that’s right for you.

Your personal Financial Plan should include the income per year you will need after you retire to have the retirement lifestyle you want. Your Plan should also calculate the amount you will need to contribute to TFSA or RRSP per year to achieve this.

This will help you determine the difference between your current tax bracket and the tax bracket you will experience after you retire. It’s easy to assume your income will be less, so your tax bracket will be less, but that is not necessarily accurate. Many government income programs allow clawback provisions that put many seniors in shockingly high tax brackets!

Clawbacks are just like a tax and they can be an unexpected cost. If you look at the breakdown of the three most common clawbacks, you can see the difference between having a TFSA or an RRSP. Here’s how the three clawbacks break down:

1.      Low income (less than $20,000) – 50% clawback on GIS

2.      Middle income ($35,000-$85,000) – 15% clawback on the age credit

3.      High income ($75,000-$120,000) – 15% clawback on OAS

You can own the same investments in your TFSA as your RRSP. The main difference is that RRSP contributions and withdrawals have tax consequences, while TFSA contributions and withdrawals don’t.

Therefore, the answer to TFSA vs. RRSP is primarily based on your marginal tax bracket today compared to when you withdraw after you retire.

Rule of Thumb

RRSP is better if:

  • You will be in a lower marginal tax bracket during retirement. Example: Today you’re making $100,000 and you will receive $35,000 during retirement, you can get a tax refund of 43% on your current deposits and pay only 20% tax on your retirement withdrawals, giving you a gain on the actual value of your RRSP of 23%.

TFSA is better if:

  • You will be in a higher marginal tax bracket during retirement. Example: Today you’re making $40,000 and you will receive $20,000 during retirement, you can get a tax refund of 20% on your current deposits and pay out 70% when you make retirement withdrawals. This figure includes lost GIS from the clawback. This saves you a 50% loss on your entire RRSP.

You can choose either an RRSP or a TFSA if:

  • You will be in the same marginal tax bracket during retirement.

Other Details to Consider

If you are still unsure if an RRSP or a TFSA is right for you, answer these two important questions:

1.      How will I use my tax refund?

  • TFSA is best if you plan on spending your RRSP tax refunds. Example: if you deposit $10,000 to either a TFSA or an RRSP and then spend the refund, the TFSA will give you a higher retirement income. You need to reinvest your tax refund for RRSPs to provide you the same after-tax retirement income as TFSAs.

2.      Is the withdrawal flexibility from my TFSA a pro or a con?

  • Flexibility is good, but if you are tempted to withdraw before retirement, RRSP might be a better choice.

Sound Financial Planning

It is advisable to plan on retiring with a taxable income in the low-to-mid level tax brackets. Since the cash that you live on can vary from your taxable income, it’s important to remember that TFSA withdrawals that are non-taxable. They can give you cash income that is not taxable income. Other tax deductions must be factored in to figure out the tax bracket you will be in.

Example: Basic government pensions are $20,000. OAS is $7,000 maximum, based on your number of years residing in Canada. CPP can range from $0 to $13,000, depending on how much you’ve deposited in the past. From here, calculate your income from your RRSP and TFSA and any other investments. You can generally withdraw 3-4% (depending on how you invest) of your RRSP or TFSA each year and have it last as long as you live.

This should help you determine which plan is right for you. You can plan to be in the right tax bracket. If you currently earn $80,000 and will retire with $50,000, you may be tempted to think TFSA is best since you will get a refund of 31% today but will pay 34% at withdrawal. However, with only $5,000 per year from non-taxed TFSA, your taxable amount is down to $45,000 which puts you in the 23% category, so RRSP is actually better. In this example, you need enough TFSA for the $5,000 per year but the rest should go into RRSP.

Important Note

Don’t forget to adjust for inflation! All of your retirement calculations need to factor in inflation. It will roughly double your cost of living in 20 or 25 years.

Forgetting to include inflation is the most common error many people and advisors make in estimating retirement income and how large of a nest egg you will need.

What about non-registered investments?

In some cases, non-registered investments may actually be better. Just maximizing TFSA and RRSP is not always the best answer. If your taxable income in retirement will be in a higher tax bracket than now, non-registered investments might be a smarter choice. If using your TFSA to the maximum will still leave you in higher tax brackets, non-registered investments will give you more cash at lower tax brackets than RRSP.

Example: Currently you make $80,000 and you plan to retire with $80,000, you get a 31% refund now but will have to pay as much as 44% when you withdraw because of the OAS clawback. Upon retirement, you can only get $45,000 at lower tax bracket rates than your current tax bracket.

If you plan on getting $20,000 from government pension, then you need to plan now for enough RRSP to give you $25,000 income. The rest should be in TFSAs. However, that won’t be enough. You will still need $35,000 more. That’s when non-registered investments might pan out better for you than RRSPs.

But don’t forget the taxes. Non-registered investments are not always tax free, depending on how they are invested, and the interest is always taxable. Capital gains, however, are only half taxable. Dividends are given preferred tax rates but they also get higher clawbacks because the income for determining clawbacks is the “grossed-up dividend”, which is 38% more than the dividend.

Let’s look at a worst-case scenario for non-registered investments: a senior making $20,000 gets a dividend of $1,000 which has a clawback of $690 (50% of $1,380). In this case, there is no income tax, but you still lose $690 out of the $1,000 in reduced GIS income.

If you sell a bit of your non-registered investments each month, you can get a nice, low tax rate on the cash. My term for this is “self-made dividends.” Since your cash income is made up of your capital gains and your original investment, the tax is very low, often only 10% of your withdrawal.

Bottom Line

1.      RRSP –

  • medium working income $50-80,000 and modest retirement savings
  • high working income over $90,000

2.      TFSA –

  • low working income under $45,000
  • medium to high working income with no retirement savings
  • medium to high working income with large retirement portfolio

How much should I save?

Generally speaking, a modest savings would be $500,000-$700,000 when you retire. Factoring in inflation, this would amount to approximately $1 million to $1.4 million if you plan to retire in two decades.

Plan in Place

Now is the time to prepare a Financial Plan that will help you sift through the options while understanding all the details such as tax brackets, clawbacks and inflation. In my experience, when my retired clients have a portfolio consisting of a good RRSP or pension, a strong TFSA and some non-registered investments, we can come up with a good plan for how much they can withdraw annually while minimizing the amount of taxes that are required.

With a mix of fully-taxed, low taxed and non-taxed sources of income, we can plan effectively for you to receive the cash for the retirement you want, while remaining in lower tax brackets.

A sound financial plan that cuts through the confusion of TFSAs and RRSPs set you up for a comfortable and worry-free retirement. It will have the optimal strategies that are right for you.


RRSP.ORG Registered Retirement Savings Plan

Registered Retirement Savings Plan – RRSP.ORG the original website that best describes everything you wanted to know about Canadian registered plans and schemes has taken a turn for the best. The information and knowledge base on RRSP.ORG is more than ready for change and a complete overhaul.

MONEY.CA the leading Canadian money and personal finance website has acquired the aging website for all the right reasons. RRSP is just one of many keyword subject sites that most of Canada wants and needs. For over 20 years this small and meaningful site providing news and information in the world of Registered plans for Canadians has now been taken over by people who know and care dearly about the subject matter and the benefits and advantages it brings to Canadian’s, the government and the country as a whole.

Look forward to the changes and updates as Canadian financial consumers will learn how to make, save and preserve more of their hard earned wealth. The advisor channel is more than welcome to contribute news, information, stories and articles that make sense and pays dividends to the average Canadian.

Simple Energy-Saving Tips That Can Cut Utility Costs

Isolated stack of bills over a black background.

Not only is reducing your energy usage good for the environment but it also can wind up saving you a lot of money. Luckily, there are plenty of steps that you can take to cut back on your power usage without having to sacrifice comfort and convenience in the process. The more you can educate yourself about how to save energy, the more money you stand to save on your utility bills.

Check out the tips in the following section to see if you can find additional ways to save:

  1. Read Your Energy Bill Carefully

The next time you get a bill from your power company, take the time to read through all of the information. This can help you get a better understanding of how you are currently using energy. Based on this information, you can then figure out where you can make changes. Always make sure you know the company you are dealing with, there is a lot to be said about the importance of researching energy companies

  1. Don’t Use Standby Mode

Many modern appliances and electronic devices have a standby mode that is designed to help them start up more quickly. Turning off this feature can save a substantial amount of energy.

Today, most appliances will retain their settings even if they are unplugged from the wall. Cutting off all power to your appliances and electronic devices when they are not in use is one of the best ways to save energy. Consider getting a power strip that you can use to easily cut the power to all of the devices that are plugged into it.

Before you unplug an appliance or an electronic device, however, make sure that your settings will be saved. You can usually find this information in the user manual for the device.

  1. Cut Back On Your Energy Usage In the Kitchen

One of the easiest ways to save is by using your kitchen appliances more wisely.

Instead of leaving the tap running while you wash up, use a bowl. This can save you a lot of energy over the course of a year.

When making tea, only add as much water as necessary to the kettle. If possible, reduce the number of times that you use your washing machine by one cycle each week. Again, this can help you save a significant amount of power over the course of a year.

  1. Use A Water-Saving Showerhead

Replacing your current showerhead with a water-saving model can reduce the amount of energy that is required to heat the water for your showers. Today’s low-flow showerheads provide a surprising amount of water pressure. In fact, you probably won’t even be able to tell a difference when compared to your old showerhead.

Not only can this step save energy but it can also save water. As a result, you can enjoy lower utility bills throughout the year.

The amount of savings that you realize from your new showerhead depends on how many people are in your family and how many showers you take a week on average. The easiest way to find out how much you can save is by seeing how much water is used by your current showerhead compared to one of the newer low-flow models. After crunching the numbers, you may be pleasantly surprised by the savings.

  1. Take Shorter Showers

Cutting back slightly on the amount of time that you spend in the shower can reduce your annual energy usage significantly – especially if everyone in your family does the same. Even shaving as little as a minute off of your shower time can make a big difference when it comes to energy savings.

  1. Reduce Drafts

Older homes often have cracks or openings around windows and doors that allow heated air to escape and cold air to get inside.

Sealing up these openings can reduce drafts, making it easier to maintain a comfortable temperature inside your home. If you handle the process of sealing air leaks yourself, you can quickly recoup the cost of your supplies through energy savings.

  1. Get A Handle On Your Home Heating

On average, approximately 50% of the money that homeowners spend on their utility bills goes to heating. This includes heating the air inside the home as well as heating water. One way to cut back on this expense is by installing a programmable thermostat. Lowering the temperature by a single degree can save a significant amount of power on an annual basis.

Today’s programmable thermostats and modern heating systems provide a lot more control over how a home is heated than systems of the past. Today’s systems allow you to:

* Control which parts of your home are heated at specific times.

* Only use your furnace when you need it.

* Use different temperature settings for different parts of your home

  1. Put Smart Technology To Work

Smart technology is taking the world of residential heating by storm. Today, there are a lot of different tools and applications out there that allow you to control the temperature inside your home remotely using your smartphone, computer, or another device. This will help you save on your energy bills.

  1. Replace Your Light Bulbs With LED Bulbs

Today’s LED bulbs provide an incredible amount of light while using practically no power. They can be used to replace a variety of different light bulbs including halogen bulbs, incandescent bulbs, and compact fluorescent bulbs. They are available in just about every size and style that you can imagine, meaning that you should be able to find a bulb for every light fixture in your home. Replacing your current bulbs with LED bulbs can result in significant energy savings.

  1. Don’t Leave The Lights On

Make sure you turn off the lights when you leave a room. Even if you are planning on coming right back to the room, turning the lights off for a short period of time can still save quite a bit of energy.

5 Changes to Retirement Savings in 2018 Everyone Should Know

The new year brings new changes to retirement savings rules. This year, five changes will affect the way you save for retirement. These changes include:

1. Higher Roth IRA Income Limits

Roth IRA income limits will be slightly higher this year. If your filing status is head of household or single, your ability to contribute to a Roth IRA will be phased out if your income is between $120,000-$135,000.

For joint filers, the range is $189,000-$199,000. For married taxpayers filing separately, the range is $0-$10,000.

If your income exceeds a certain threshold, you won’t be able to contribute to a Roth IRA for the rest of the year. If your income falls within the above-listed range, you’ll only be able to make a partial contribution. If your income is higher than the range, you won’t be able to contribute to a Roth IRA at all.

2. Increased 401(k) Contribution Limits

In 2018, the annual contribution limit is increasing for 401(k) account holders. The limit this year is $18,500.

For those aged 50 and older, catch-up contributions will still be capped at $6,000, which brings the limit up to $24,500 per year.

3. Slightly Higher Saver’s Credit Income Limits

The Saver’s Credit allows taxpayers to claim a tax credit for contributions to retirement savings. Taxpayers must fall below certain income limits to qualify.

In 2018, the limit is slightly higher at:

  • $31,000 for single and married-filing separately
  • $47,250 for heads of households
  • $63,000 for married taxpayers filing jointly

4. Higher IRA Deduction Limits

IRA deduction limits are also increasing in the new year.

Taxpayers who can access employer-provided retirement savings options, like a 401(k) may not be allowed to deduct their contributions to their IRA accounts from their taxable income.

IRA contribution deductions phases out after reaching a certain income range. In 2018, that range is increasing to:

  • $63,000-$73,000 for single and head-of-household filers.
  • $101,000-$121,000 for joint filers if the contributing spouse is covered by an employer-provided plan.
  • $189,000-$199,000 for joint filers if the contributing spouse is not covered by an employer-provided plan.
  • $0-$10,000 for taxpayers who are married and filing separately

IRA investing can be complex. If you’re new to IRAs, you can learn to invest at or talk to a financial adviser.

5. Increased HSA Contribution Limits

An HSA, or health savings account, is not typically grouped with other retirement savings accounts, but it may be an even better option than conventional options.

HSAs have a triple tax advantage. Contributions to the account are tax deductible. The money in the account is exempt from dividend and capital gains taxes. Distributions taken from the account are also tax-free if the money is spent on qualified medical expenses.

At the age of 65, that money can be used on more than just healthcare expenses, and you won’t incur any tax penalties. You may, however, have to pay income tax on the withdrawal of the money.

In 2018, the contribution limits on HSAs is increasing to $3,450 self-only and $6,900 for family coverage.

Understanding the Differences Between Financial Advisors and Brokers

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Advisors Channel

As a fee-only financial advisor, I am surely biased to this type of advisor. I do think everyday investors are much better off if they have someone in their corner who is recommending a particular investment product because it actually is the best product for them, given their circumstances and life stage. Not because there’s a commission on the sale at the end of the day.

That doesn’t mean, though, that you shouldn’t be mindful of possible issues – and that’s for any financial advisor, whether fee-based or full-service brokers. For that matter, you also should be mindful of potential drawbacks to other options that may seem (superficially, at least) appealing.

Let’s look at the options.

Fee-only financial advisors are considered advantageous because there’s no inherent conflict of interest as there can be with full-service or commission-based brokers. Brokers often recommend investments owned by their company, which is an inherent conflict.  You simply have to consider whether the products recommended are going to be best for your personal financial goals.

What you pay for is financial guidance, planning and assistance. This may be a flat fee. Some advisors charge a percentage of your account’s assets. You may be able to negotiate the amount. But, the fees you pay do not fluctuate according to the type of investments that are being recommended. What you get with this approach is objectivity and investment advice that’s unbiased. Your interests and your advisor’s are aligned.

The commission-based approach to financial advisory services is less the norm today than in the past. You open an account or buy a stock or bond and your advisor gets a percentage. Recurrent trading may also be encouraged – which may not be good for investors with a longer-term perspective. This all can pose a conflict with your best interests and goals.

And on the do-it-yourself front? Well, as attractive as this might sound on the surface, consider the relevance of the saying about the attorney who represents himself. For investment purposes, you might find good information online, but it’s just as likely you’ll find speculative information, if not real fake news. Investing is a risky business; if you don’t have the time or the expertise to do an adequate job of qualifying research, get a professional to help. Your future – financial and otherwise – depends on it.

Speaking of your financial future, it’s never too early to start planning for it. That means Millennials – and even the oldest Generation Zs who are just entering the workforce – should be putting money aside as they think about their long-term financial goals. It’s a challenge, of course, especially for those who are still trying to pay off college. Retirement is maybe too much to think about, right?

With that said, I’ve developed a service package to make it less painless. My new Robo-Advisor Professional service package is specifically targeted to the needs of Millennials and utilizes an in-depth financial data collection sheet, as well as a plan discussion with myself, to collect essential information about your financial background and goals.  This provides a strong base of understanding for clients to invest in ETFs through WealthSimple with a superior portfolio manager with a track record of beating the index.

ETFs are ideal for those with more limited resources, as a “wrapper” around a group of securities. They have a cost advantage over individual stocks and can be traded commission free. They’re similar to mutual funds, but with more flexibility as they can be traded throughout the day, not just once.

The Mortgage Broker

The Mortgage Broker
The Mortgage Broker – Canadian Mortgage Broker – Mortgage Broker Canada

Make save and preserve more of your money with The Mortgage Broker. Home of the “Best Rate Around”. The independent mortgage broker in Canada is usually allies with a national brokerage to get better and lower rates by volume. Join your local mortgage broker to get the best rates. MONEY often refers Canadian financial consumers to licensed and reputable mortgage brokers and not to big banks directly in order to save you more and get better information, benefits and privileges. Learn more for a direct referral for your mortgage and real estate needs with professionals that know and understand that price and service rule the day. Call us toll free 1-800-789-1011 x101 to know more and get more value for service.

The Best US States Financially to Retire to

Many websites venture into what state is best for retirees. Fewer websites factor financial benefits into selecting a state. Bankrate, Wallethub, Kiplinger, Go Banking Rates, and decided to venture into retirement states with financial benefits with mixed results. Therefore, the ones on this list made the top 10 on three websites. Ironically, six on Wallethub‘s list made this list. Prepare to break away from stereotypes and embrace open-mindedness before reading.


Retirees craving snow year-round will appreciate Colorado’s snow-capped mountains and nearby ski resorts. Colorado’s strength lies in its healthcare, cost of living, and well-being/quality of life, according to Bankrate and The nature surrounding Colorado, including rivers, air, and trees, will attract outdoor enthusiasts too.


Florida’s warm weather, beautiful beaches, and endless amenities make it a premier retirement destination. Go Banking Rates and Kiplinger appreciate Florida’s affordable healthcare costs, low home prices, affordable cost of living, and no state income taxes. What Kiplinger adds to the pot is Homestead Exemption, a home saving opportunity for Florida seniors. Likewise, Florida title loans exist for seniors to pay for cars, motorcycles, and boats.


A state mainly overlooked as a retirement destination should now be on every retiree’s wish list. Bankrate and adore Idaho’s cost of living, low crime rate, and overall well-being are great reasons to move there, putting seniors at ease about safety concerns. The non-taxable prescriptions and social security income makes healthcare affordable for seniors, says Include the mountains and the sunny-not-humid weather and retirement are complete.


Stretch the dollar further in Iowa if you’re willing to sacrifice beaches, mountains, and warm weather and embrace the Midwestern heartland. Bankrate and loves Iowa for affordable home prices, cost of living, and healthcare. Bankrate boasts about Iowa’s low crime rates while highlights the quality of life and senior assisted living options.

New Hampshire

For anyone willing to brave the cold winters, the Granite State makes the tradeoff worthwhile. Bankrate appreciates the state’s excellent healthcare, low crime rates, and overall well-being. Go Banking Rates and Kiplinger touts New Hampshire’s social security benefits, no state income tax, and no state sales tax. Kiplinger specifically mentions a $1,200 exemption for property taxes and a city exemption for dividend interest for retiree residents.

South Dakota

The third state with no state income tax, South Dakota’s weather leans to both extremes: the hottest summers and the coldest winters. Additionally, Bankrate mentions overall well-being and cost of living as advantages. Likewise, Kiplinger shares the same sentiment on no state income tax, yet acknowledges the low sales taxes. With good spending habits, the dollars earned from social security and savings will last a long time.


The social security payouts pay dividends in Wyoming, according to Go Banking Rates. Large payouts, great bank interest rates, and a low cost of living make Wyoming a lovely destination for retirees. Kiplinger, meanwhile, loves the no state income tax, the fourth one on the list, and low property taxes. In addition, Wyoming has low sales taxes thanks to abundant oil and mineral resources. Eligible seniors can expect a small refund from property taxes, sales taxes, and utilities combined.

The combined list shows that warmer climates aren’t the best retirement areas financially. It makes sense. Everyone’s moving there, which increases home prices, cost of living, and other expenses. In closing, retire where you feel financially comfortable and don’t let peer pressure sway you to live elsewhere. It’s important to plan long-term retirement with the state that will stretch the dollar the farthest.

Ed Rempel Org

What is The Cash Flow Dam?

What Is The Cash Dam and How Does It Work?

 The Cash Dam (sometimes referred to as a “cash flow dam”) is a simple but powerful concept, and it’s an especially attractive option for those who are familiar with the Smith Manoeuvre or other tax minimization strategies. Cash Dam can help you with tax optimization if you have a mortgage and own either a small business or a rental property.

What is cash damming?

 The Cash Dam allows the owner of a small business or rental property to more quickly pay down their non-deductible mortgage on their home. It’s a variation on the Smith Manoeuvre, but without additional investing. The Cash Dam is essentially an expedient way to change bad debt into good debt.

For someone who’s using the Cash Dam, what it involves is using a line of credit to pay for business expenses. Then, while using the increased business cash flow, you pay down a non-deductible mortgage or loan. This, in turn, produces an increasing tax-deductible business loan, while paying down a non-deductible mortgage or loan. Be advised that the Cash Dam as described above will only work for those who own a non-incorporated personal or partnership-based small business or a rental property.


 If you own a small non-incorporated business that has $2,000 in expenses each month and you also have a readvanceable mortgage, then the $2,000 per month expense would be paid by the home equity line of credit (HELOC). You then use the additional $2,000 you have in your business expense account to make a payment on your non-deductible mortgage. Interest paid on money that’s borrowed for business expenses is tax-deductible; by using the Cash Dam, you’ll be left with a tax-deductible business loan and a non-deductible mortgage that’s been quickly paid down.

One of the keys to the Cash Dam, however, is capitalizing the interest on the business line of credit. That way, you avoid using any of your own cash flow and you keep the business line of credit tax-deductible.

How does the Cash Dam differ from the Smith Manoeuvre?

The Cash Dam relies on using a tax-deductible business loan to allow you to pay down a non-deductible debt, while the Smith Manoeuvre allows you to buy investments. Investing from your credit line is why the Smith Manoeuvre has much higher risk and return than the Cash Dam.

Potential applications

 Say that you’re a rental investor, instead of using your own cash flow to pay for rental-related expenses, you can use the Cash Dam and a line of credit. In this instance, using the Cash Dam would help you pay for your personal mortgage and help you satisfy your tax obligations as well.

And if you are a small business owner, the Cash Dam can be extremely advantageous. The strategy gives you a way to quickly pay down your non-deductible mortgage and convert that debt into a tax-deductible business loan.