In part one of this two-part series, Talbot Stevens, author of Dispelling the myths of borrowing to invest, discusses the pros and cons of this controversial strategy. Stevens identifies seven main risks of leveraging and outlines the various elements of creating a successful borrowing strategy for clients. He spoke with Investment Executive senior reporter Jade Hemon at the TMX Broadcast Centre in Toronto.
Short-term loans repaid within a year; larger long-term loans when returns are high enough to justify cost of borrowing
Advisors can promote education, wiser spending choices, better savings strategies and borrowing for the future
Personal savings rates may be at record lows, but you can help clients find ways to save for retirement