Q: Hi 5i,
I'm a younger guy (mid 30s) who's fortunate enough to have saved hard and basically paid off my primary residence. I'm now looking to redeploy that equity through a credit line, which comes at a cost of prime + 0.5%. Our TFSAs are maxed (aligned with model BE/growth portfolios) and RRSP contributions are healthy, so I'm comfortable with our total equity exposure, but I would like a low-risk income-oriented holding in a new non-registered account that yields enough after tax to offset the cost of capital on the credit segment. Is there anything that comes to mind? Maybe a series of Prefs (neutralizes rate risk assiciated with this strategy) with a few high-yielding equities to bump up the overall yield?
Thanks for your help!
I'm a younger guy (mid 30s) who's fortunate enough to have saved hard and basically paid off my primary residence. I'm now looking to redeploy that equity through a credit line, which comes at a cost of prime + 0.5%. Our TFSAs are maxed (aligned with model BE/growth portfolios) and RRSP contributions are healthy, so I'm comfortable with our total equity exposure, but I would like a low-risk income-oriented holding in a new non-registered account that yields enough after tax to offset the cost of capital on the credit segment. Is there anything that comes to mind? Maybe a series of Prefs (neutralizes rate risk assiciated with this strategy) with a few high-yielding equities to bump up the overall yield?
Thanks for your help!