Hello David---
I'm retired with a great pension and no debts--with a portfolio (150k) mutuals-mixed registered and non registered. Most are spousal as i was so limited with personal contributions until my severance package which went in my name registered.Now ---my kids are a different story---They are on our line of credit at cibc for 30k and are attemptin to pay down the debt but we have made some payments for them --so it gets confusing--now that we want to purchase a newer vehicle and just wonder which way to finance this . The vehicle has been leased by the same kids and the term is up--we want to buy it out and they are arranging lease terms for a larger unit. I'm afraid that i'm not a real student of finances and have missed the boat on many occasions. I don't require funds from my portfolio and have simply deferred or stickhandled into a financial corner---and don't know how to start a constructive play.Do i cash in a portion of the portfolio to finance the car --then re-aquire that portion--making ( $20k)
interest deductible----Are there tax implications? Or do i ask the kids to restructure around their hugely new found home equity and get off my line of credit. I'm not getting too many suggestions from my sources .Sorry if this sounds lame---I'm admittently lazy -but give me a running car with a heater ,my golf clubs,and $50 in my pocket---i'm happy!-----By the way ---Thanks for re-surfacing the David and the Pope joke---it's a beauty------------------BXXXXXXX
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david ingram replies:
1. Get kids off your line of credit. In fact they should be buying out their own car instead of starting the lease cycle over again.
2. If you are going to buy the car, cash in some portfolio and pay cash. If you want to expand or increase the portfolio, borrow the money back
3. Consider a Manulife segfund leveraged portfolio which I think is far superior to "any" RRSP purchase anyone can make.
Understand that I have a vested interest here because we share a radio show but Fred Snyder of Dundee Wealth Managers at (604) 731-8900 would be a great guy for you to get a written financial plan from.
That would put it all in perspective.
Last but NOT least, drag your kids (and yourself) out to one of Fred's seminars held at his office at 1764 West 7th in Vancouver every Thursday Night.
Good information and no pressure.
Information follows:
Fred Snyder and I are giving free seminars on making your CANADIAN mortgage interest tax deductible at Fred's office at
1764 West 7th
Vancouver.
The Seminar also features alternatives to RRSP Accounts
This is in the Spence Diamond Building at the corner of 7th and Burrard
and is very easy to find.
When: Just about " Every" Thursday Night
Time: 7 to 9:30 PM
RSVP: phone (604) 731-8900 to reserve (limited to 25 people)
AND
Answers to this and other similar questions can be obtained free on Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet at
www.600AM.com
Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600.
Old shows are archived at the site.
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David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
davidingram at shaw.ca
www.centa.com www.david-ingram.com
Disclaimer: This question has been answered without detailed information or consultation and is to be regarded only as general comment. Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
david ingram
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