Episode 60 Transcript – Mayan Riviera in Mexico, Smith Manoeuvre

This is Jessi Johnson and Janakie Singham and we are on a tricycle bike, kind of like the one right in front of us. A tricycle taxi, the one our tour guide is on. I’m going to do the next few blogs over the next month on what I’m studying, the Smith manoeuvre, which is a very typical investment strategy for leveraging your own home to pay off your mortgage faster and create a greater overall family wealth. One of the first phases is, as you pay down your mortgage you take the money, the principal that you pay down, and you borrow that back on a line of credit so you use a step product which I can access and you reinvest that money, you’re hoping to get 10%. At the end of the 25 year amortization you pay off the money, the amount of money that you reinvest, and have all that investment income plus pay off your mortgage significantly faster. I can get into much more detail at my investment seminar or you can give me a phone call and I guess you say adios. You can reach me at www.firsthomeinfo.ca. Bye!