Leveraged Investment

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Leveraged Investments

This is almost a perfect leveraged investment against your largest asset - your family home.

The cash flow nature of the returns and the investment security are such that you can reasonably borrow against your home on a tax advantaged basis though a Line of Credit, invest the money in the MIC, and take out enough cash flow from the dividend returns to cover the cost of interest on the borrowed money, and income taxes and the earned income, and leave the balance to accumulate over time.

Borrow $100,000 against the equity in your home from a Line of Credit, at current interest rates.

• Mortgage Payment will be HLOC rate times $100,000 X 4.5% = $375.00 per month
• Invest $100,000.00 in MIC 8% monthly income program 666.66 per
• Total interest paid on HLOC over 12 months is $8,000 .00

Pay the monthly interest cost of $375.00

Pay the income tax owing on total interest income assuming 12% ROI less cost of borrowed money.

Total Invested is $100,000.00

Total amount earned in MIC assuming a 12% ROI

• $100,000 X 12% = $12,000
• Less cost of HLOC $4500 interest

Before tax net income from investment after the cost of interest is:

• = $12,000 - $4,500 = $7,500.00 net taxable income

Assuming marginal tax rate at 45%

$7,500 X 45% = $3,375

• net after tax profit is $4,125.00

Investment unit value after 12 months = $104,125.00

Net After-tax value of investment after 10 Years is $49,813.22 after paying off $100,000.00 HLOC