Disclaimer

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Disclaimer

• This presentation and all of the information it
  contains are provided "as is" without warranty of
  any kind, whether expressed or implied. All
  implied warranties, including, without
  limitation, implied warranties of
  merchantability, fitness for a particular
  purpose, and non-infringement, are hereby
  expressly disclaimed.  
• Limitation of Liabilities Under no circumstances
  will Smith Consulting Group Ltd., any of its
  affiliates, or Fraser Smith be liable to any
  person or business entity for any direct,
  indirect, special, incidental, consequential, or
  other damages based on any use of this Web site
  or any other Web site to which this site is
  linked, including, without limitation, any lost
  profits, business interruption, or loss of
  programs or information, even if Smith Consulting
  Group Ltd, any of its affiliates, or Fraser Smith
  has been specifically advised of the possibility
  of such damages.
• Updated December 20, 2004

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Tonight you will learn how to

• Get FREE tax refunds from the CRA
• Pay off your mortgage faster
• Build an investment portfolio

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SIMULTANEOUSLY
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The Wealth Pyramid
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The Problems
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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The Solution
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History of THE SMITH MANOEUVRE
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What is THE SMITH MANOEUVRE
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• THE SMITH MANOEUVRE is a financial strategy
  designed to convert the non-deductible interest
  debt of a house mortgage to the
  deductible-interest debt of an investment loan,
  which simultaneously ensures the building of a
  free and clear investment portfolio.

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A picture is worth a thousand words
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
GOOD DEBT
BAD DEBT
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
GOOD DEBT
BAD DEBT
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Another 1000 words
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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tidbit How much do you have to earn to pay off
a 200,000 loan?
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Read it and weep
You need to earn this much
700,402
You pay this much income tax
280,161
420,241
You have this much left
You pay this much bank interest
220,241
Pay back the original loan
200,000
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700,402 !!!
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Is this legal?
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• During the past 20 years, THE SMITH
  MANOEUVREhas not been challenged by any tax
  authority, by any lawyer, by any accountant, by
  any financial planner or by any financial guru as
  regards the theory, the strategy, the mechanics,
  the arithmetic or the projected outcomes.

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The Four Steps

• Plain Jane Smith Manoeuvre
• 1. Re-borrow and invest any paydowns on your
  first mortgage.
• 2. Apply tax refunds against your first
  mortgage then immediately re-borrow and invest
  the same amount.

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The Four Steps

• Enhanced Plain Jane
• 3. Cash in and apply current paid up assets
  against the first mortgage in the morning,
  re-borrow and invest the same amount in the
  afternoon.
• 4. Divert any monthly savings or investment
  programs against the first mortgage, and
  immediately re-borrow and invest the same amount.

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case history Quantify the value of THE SMITH
MANOEUVRE for the Blacks.
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The Blacks

• 200,000 at 7 for 25 years
• Both work, 100,000 per year
• 40 tax bracket
• 50,000 rainy day fund
• Adding 500 per month
• 40 years of age, 2 kids and a dog

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Future value for the Blacks current investment
program?
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• FV of 50,000 for 25 yrs 541,735
• FV of 500/mth for 25 yrs 663,417

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1,205,152
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What if they did THE SMITH MANOEUVRE?
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Results of the Four Steps

• Plain Jane
• After Step 1 214,207
• After Step 2 309,882
• Enhanced
• After Step 3 1,209,709
• After Step 4 1,962,770

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1,962,770
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• THE SMITH MANOEUVRE1,962,770

The Blacks way1,205,152
The difference757,618
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For the Blacks, this is a decision worth 3/4
of a million dollars!
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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THE SMITH MANOEUVREIs your mortgage tax
deductible?
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• THE SMITH MANOEUVRE1,962,770

The Blacks way1,205,152
The difference757,618
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The Smithman Calculator

• Go to page 35 of your book.

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Whos doing the financing?
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Lets summarize
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Your next step
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Procrastination is the enemy of your financial
success F. Smith
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