How to leverage - long term strategy?
From what I understand, borrowing to invest makes the interest tax deductible as long as there is expectation of the future dividend payments. Furthermore, I can take advantage of the Federal dividend tax credit.
What's the best way to go about implementing this? Withdraw from LOC, purchase something like XEI or ZDV, and keep track of interest payments for tax time? or do it via margin account?
My time horizon is 20 years+ so I'm happy to weather out dips. I don't expect the LOC being called, but the margin account I will have to continue adding $ if the value of the portfolio drops past a certain threshold, correct?
Thoughts? Thanks in advance.