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  • Mar 15th, 2018 2:54 pm
[OP]
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Dec 27, 2013
1608 posts
429 upvotes
Woodbridge

Recommended Books

I was reading a thread in which the OP was asking about the best way to pay for a condo. I understood maybe half of the words in that thread... Here's an example of something that went way over my head.
Mike15 wrote:
Mar 13th, 2018 2:39 pm
Selling shares and using those funds to buy the residence, but then borrowing on margin to invest would count as a tax-deductible investment loan though, right? That would be a good approach to explore, though there'd be tax consequences for realizing any capital gains in doing so.
I consider myself to be a fairly educated individual, but reading through the threads, heck just the thread titles of this forum makes me realize how little I know about personal finance. Could anybody recommend a website or some books that I can read to teach me to understand what any of these words mean? They really need to jack up the amout of personal finance in the curriculum. I can tell you how to translate a parabola 5 units to the right and flip it upside down, but I have no idea how best to manage my own money.
8 replies
Sr. Member
May 23, 2014
844 posts
423 upvotes
canada
Google it all. That’s how I learned.
If not

PERSONAL FINANCE FOR CANADIANS FOR DUMMIES

Most books will be too complex or American or what the author wants to talk about. So the above book should be good . Your local library has it and chapters
Deal Addict
Nov 24, 2013
4856 posts
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Kingston, ON
Could start just reading Canadian-centric personal finance blogs and learning from them,

https://www.moneywehave.com/

Supplement with looking terms up on Investopedia,

https://www.investopedia.com/dictionary/

You don't have to eat the whole cow in one bite. I joined RFD Personal Finance a few years ago looking for advice on mortgage renewal, and have learned A LOT since just being here and gradually picking things up. It helps that I have an accounting background, but a lot can just be picked up over time. Other sites like Reddit PersonalFinanceCanada or CanadianMoneyForum http://www.canadianmoneyforum.com/ are great resources as well, though you'll see a lot of the same things as here.

Wrapping my head around the Smith Manouevre (which I first heard of here on RFD) really helped my understanding of how holistic personal finance strategy can be. The ways of structuring your finances go beyond just getting the best individual rate on a mortgage product or seeking the best investment return.
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Sep 19, 2013
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Winnipeg
You are asking for two different things. If you need books on how to manage your own money - there are tons of websites and books. If you go to the local library and personal finance section, you can find them. Wealthy Barber is a very basic book with a story based narrative, its a good start.

Now to the other thing - you are also asking a specific question. I bet the tax saving strategy you are talking about would not be discussed in detail in most of the basic personal finance books. Even if it is, it wont be discussed in a detailed way. Most of the details pertain to tax. This is leveraged investing. You take out a loan, use it to generate income (business, expenses towards rental property, stocks) and the interest you pay is tax-deductible. If you use a HELOC against your own home, its called Smith Manoeuvre. Google it.

One thing to note, leveraged investing in stocks only makes sense if you are 100% invested in equities. If you have a bond portion in your portfolio, then you are basically balancing your portfolio towards lower-risk, lower-return bonds.
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams
[OP]
Deal Addict
Dec 27, 2013
1608 posts
429 upvotes
Woodbridge
amitdi wrote:
Mar 14th, 2018 1:29 pm
You are asking for two different things. If you need books on how to manage your own money - there are tons of websites and books. If you go to the local library and personal finance section, you can find them. Wealthy Barber is a very basic book with a story based narrative, its a good start.

Now to the other thing - you are also asking a specific question. I bet the tax saving strategy you are talking about would not be discussed in detail in most of the basic personal finance books. Even if it is, it wont be discussed in a detailed way. Most of the details pertain to tax. This is leveraged investing. You take out a loan, use it to generate income (business, expenses towards rental property, stocks) and the interest you pay is tax-deductible. If you use a HELOC against your own home, its called Smith Manoeuvre. Google it.

One thing to note, leveraged investing in stocks only makes sense if you are 100% invested in equities. If you have a bond portion in your portfolio, then you are basically balancing your portfolio towards lower-risk, lower-return bonds.
This might give you some more info - I read the Wealthy Barber. I also read Millionaire Teacher as well as some books by Kevin O'Leary on personal finance. I found this very useful. I guess I'm looking for something that summarizes and describes the more technical situations or strategies that one might find themselves in. I'll start with the links that you guys have provided so far. My problem is that when I read blogs or forum posts, people will use a term or reference some maneuver, then I'll open tabs reading about that, and in the process read about some other term or maneuver, then open tabs about that, and go off on tangents. I feel like a book from cover to cover would force me to organize my learning and thoughts.
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Sep 19, 2013
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jvnanu wrote:
Mar 14th, 2018 2:22 pm
This might give you some more info - I read the Wealthy Barber. I also read Millionaire Teacher as well as some books by Kevin O'Leary on personal finance. I found this very useful. I guess I'm looking for something that summarizes and describes the more technical situations or strategies that one might find themselves in. I'll start with the links that you guys have provided so far. My problem is that when I read blogs or forum posts, people will use a term or reference some maneuver, then I'll open tabs reading about that, and in the process read about some other term or maneuver, then open tabs about that, and go off on tangents. I feel like a book from cover to cover would force me to organize my learning and thoughts.
For personal finance: read Wealth Logic: Wisdom for Improving Your Personal Finances

For SM strategy, I read a very good book, but I forgot the name. It sounded like "Mortgage Freedom" or something like that. It talked about 4 phases of SM. I will try to look for it when I go to the library.
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams
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Jan 15, 2015
482 posts
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jvnanu wrote:
Mar 13th, 2018 4:33 pm

Could anybody recommend a website or some books that I can read to teach me to understand what any of these words mean?
thesick wrote:
Mar 14th, 2018 6:55 am
Google it all. That’s how I learned.
If not

PERSONAL FINANCE FOR CANADIANS FOR DUMMIES

Most books will be too complex or American or what the author wants to talk about. So the above book should be good . Your local library has it and chapters
If you have a public library account, logon to ProQuest though a proxy and read this and related books for free. You must logon to your library account and access Safari Books Online from there; the link below will allow you to search for books and read excerpts only. For example, with my local library website I access the top menu bar, click on "Databases", and select "E-books & Audiobooks" in the drop-down menu, then scroll down to "Safari Books Online". YMMV.

The Personal Finance for Dummies book is not strictly for Canadians though. I noticed there is an Investing for Dummies Canadian edition.

ProQuest Tech Books...
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Sep 19, 2013
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Here is the other book I was talking about. It talks about some SM strategy.

Mortgage freedom : retire house rich and cash rich
Author: Alexander (Sandy) Aitken
In the beginning the Universe was created. This has made a lot of people very angry and been widely regarded as a bad move. -- Douglas Adams

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