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@cwordman I work in finance. It’s like every other profession, you learn through experience. I don’t do personal finance, but I’ve seen companies blow up with too much leverage and the same principles apply, don’t take risk you don’t have to, or can afford too

@cwordman I get the appeal of the smith maneuver, but for my personal risk tolerance, adding additional leverage when you already have a highly leveraged real estate asset, is unnecessarily aggressive. If your house is paid for, you have more flexibility in your budget to ride out rate hikes...

@cwordman It’s a somewhat simpler paradigm, but my view is that once you are out of debt other than your house, max out your TFSA, then your RRSP, then pay off your house, then it could be interesting to borrow against your house to invest. If you borrow to buy securities it’s tax deductible...

@cwordman Tax matters. If the returns are taxed and the costs (mortgage interest) isn’t that closed the spread Future rates matters. You need to compare your returns to the prices over the holding period. If you have a 5 year holding period, look at how long your rate is cheap and when you have...