Investing More

Amazingly we’ve been living in Calgary for 5 years now.  The time came to renew our mortgage and while I was doing that I started the process of opening a HELOC so that we can use some of the equity in our house to invest.

With today’s low interest rates it has become pretty attractive to borrow money. I expect it will be relatively easy to get a positive spread between the interest rate and the return on any investments.

Leverage like this is the only way to become wealthy.  This is dramatically apparent for our house value: since buying a house the slope on our monthly net worth tracking doubled.  Unfortunately in the case of house value that equity is not very liquid and difficult to access.

The plan for the HELOC funds is to invest most of it in a well diversified portfolio of stocks and bonds.  I’ll withdraw funds each month to pay for the interest on the loan.  By the time the HELOC is paid off we should have made a nice profit.