Comments on: Book Review: The Smith Manoeuvre

By: Garth Turner’s Dodgy Advice « MoneySense

Garth Turner’s Dodgy Advice « MoneySense — Wed, 27 Apr 2011 14:52:38 +0000

[...] Book Review: The Smith Manoeuvre [...]

By: Canadian Capitalist

Canadian Capitalist — Wed, 31 Dec 2008 12:00:04 +0000

Doug: It’s done. Sorry for the delayed response. I was traveling.

By: Doug

Doug — Tue, 30 Dec 2008 22:23:35 +0000

Please remove the email address from post #32. Thanks.

By: P.

P. — Mon, 04 Aug 2008 21:09:42 +0000

Simply put, the Smith Manoeuvre (or in my case the Smith Snyder Manoeuvre) is the best money strategy for Canadians period. As long as you are in it for the long term and are disciplined there is no real down side. The eminent gains far outweigh any risks.

By: Kiasmine

Kiasmine — Tue, 04 Mar 2008 17:31:33 +0000

Kevin why do you state the below?

“You should have at least 25% of your house paid off before starting SM.”

By: Kiasmine

Kiasmine — Tue, 04 Mar 2008 17:29:33 +0000

My Husband and I bought our first home 4 months ago (we are 30 years old no children we have approx. $20,000 worth of personal debt/student loans). Our mortgage is 290,000 we used a no down payment mortgage 100% financing. We have been offered a 50,000 LOC to attach to the mortgage to perform the smith manouver. This 50K is also 100% financed – higher interest – invested in mutual funds.
We view this as we have nothing to loose if we go with it. We put “0″ into our house other than our regular accelerated biweekly mortgage payments which could be considered as rent because he did not put a 5%-20% down payment on the home.
We were told that we will not be required to pay anything extra (considering the additional $50K) other than our original accelerated mortgage payment and we still benefit by gettin the net distribution.

Do you think it is in our best interest to start the smith manouver?

By: The Smith Manoeuvre Debate

The Smith Manoeuvre Debate — Thu, 13 Dec 2007 00:24:14 +0000

[...] one year back, I did a review of The Smith Manoeuvre (SM) book and noted that the book should have talked about the pitfalls involved with the strategy. Many [...]

By: Kevin Malone

Kevin Malone — Sun, 28 Oct 2007 06:36:39 +0000

You should have at least 25% of your house paid off before starting SM. I don’t think the length of the mortgage is all that relevant because you are going to pay it off a helluva lot faster than 35 years if you are doing SM

By: Canadian guy

Canadian guy — Tue, 23 Oct 2007 19:02:14 +0000

So would the SM work if you had a down payment of $21,000.00 in your house and your remaining mortgage is $243,000 over 35 years.

By: Guruwizard

Guruwizard — Thu, 11 Oct 2007 20:14:34 +0000

The nice thing about having gains is that you can realize them when you like. So in your example, with limited income, this year would be a good time to realize any capital gains if you had them.
Remember that you only pay tax on half of your actual gain.
This is the difference between capital gains and income (interest, rental, employment) which is 100% taxable.
You’ll pay your taxes on capital gains realized this year when you file your 2007 return.
If you don’t sell, you don’t pay any taxes, even if your investment is up in any given year.
It would be the same as your real estate investment properties.