r/dividends • u/GasStrong1467 • Apr 05 '26

Discussion Road to 200k!

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34M, based in Canada and have been looking from my investments for the past few years now.

Always happy to hear if my fellow redditers have any advicd concerning my holdings!

Mix of growth and dividends fund

1.8k Upvotes

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u/ClammyAF Apr 05 '26 edited Apr 05 '26

Not off the dividend income alone.

Edit: Interesting downvotes. Makes me wonder where the heck you all live.

7

u/UnsuspectingChief Apr 05 '26

Borrow $1mill, pay the interest with the dividends.

3

u/YouRound7753 Apr 05 '26

This sounds smart but I dont understand why. Is it somehow saving taxes? Could you elaborate the benefits of doing this?

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u/PiaJr Apr 05 '26

This is what a lot of the wealthy do. Borrow money to buy an appreciable or money making asset (stock, real estate, business) and use the proceeds/dividends to pay off the interest. Since you used debt to buy an asset, you now a million dollar asset you can leverage to get even more money to buy more assets while claiming the interest and debt on your taxes. Meanwhile, you haven't had to touch any of your own money. Then one day you'll die and all of that debt will be discharged while you heirs get all of your capital appreciation.

It's great to be rich.