Why the Rich Borrow Instead of Selling<\/p>\n
Imagine an entrepreneur with a $5 million non\u2011registered portfolio returning 6 % a year and a sudden need for $1 million to buy an adjacent property. If she sells investments, she will realise capital gains, pay tax up front, and lose the future growth on the assets she liquidates.<\/p>\n
By contrast, a securities\u2011based lending (SBL) facility lets her pledge part of the portfolio as collateral, borrow at roughly prime minus 0.5 % to 1 %<\/a>, and leave the full $5 million invested. Provided the spread between portfolio returns and interest cost remains positive after tax, she comes out ahead.<\/p>\n On paper, the math is compelling. In real life, however, shifting from “debt\u2011free is safe” to “debt\u2011as\u2011strategy” introduces three challenges that accountants must police:<\/p>\n The Modern High\u2011Net\u2011Worth Credit Toolkit<\/p>\n Emerging Trends Driving the Shift<\/p>\n Guardrails: Where Accountants Add Real Value<\/p>\n Final Word<\/p>\n Strategic leverage is not about having debt; it is about using debt as a precision tool to widen the after\u2011tax spread between what your money earns and what it costs to access. For affluent Canadians who can stomach the complexity, the upside is meaningful: lower tax drag, uninterrupted compounding, and on\u2011demand liquidity for the next opportunity.<\/p>\n Yet credit’s benefits arrive only when the fine print aligns with each client’s unique tax profile and risk tolerance.<\/p>\n That alignment is the accountant’s wheelhouse. By integrating debt strategy into holistic planning, SRJ Chartered Professional Accountants help ensure that leverage acts as a scalpel—sharply effective, safely handled, and never leaving unintended scars on family wealth.<\/p>\n Disclaimer: <\/strong>This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.<\/em><\/p>\n Media Contact<\/span> Canadian high-net-worth individuals allocate equal time to liabilities analysis as they do to investment planning during financial meetings today. The most advanced family portfolios borrow against existing securities to increase wealth compounding at tax-efficient rates exceeding their borrowing costs. At … Continue reading \n
\n
\n
Company Name:<\/strong> SRJCPA<\/a>
Contact Person:<\/strong> Shayan Rashid
Email:<\/strong> Send Email<\/a>
City:<\/strong> Toronto
Country:<\/strong> Canada
Website:<\/strong> https:\/\/www.srjca.com\/<\/a><\/p>\n<\/p>\n","protected":false},"excerpt":{"rendered":"