Cash Damming

If you own assets that generate income – a portfolio of appropriate investments, a rental property(s), a business, and/or your home has a tenanted basement suite – you’ve probably set your life up in the standard way. That is: ostensibly keeping these assets’ income streams, and the mortgage on your principal residence, separate.

I can show you an unorthodox but tested-and-true way to re-route your income streams – so that your assets continue to grow, your home’s mortgage gets paid off faster, AND your personal income tax bill gets reduced. All without ANY change to your actual cash flow. This tactic, known as Cash Damming, is an element of the Smith Manoeuvre™. Book a call to have a broad-stroke discussion about your cash flow needs; and how the right financial advisors and I can team up to make it happen for you.

Traditional Cash Flow Management: Debt Consolidation and Re-Amortizing

From my desk, optimizing your household cashflow is usually a cornerstone of a mortgage refinancing exercise. We’re examining your debts – including your existing mortgage, credit cards, lines of credit, auto leases/loans, personal/student loans and so on. What are the rates for each? More importantly, what are the monthly payments? And what’s the VOLUME of interest you’re paying in total, using your after-tax income? Factor in the balance of your monthly living expenses and we arrive at a sweet spot in which a new mortgage moves you forward with lower payments, lower & less interest, and a breath of fresh air.