^ Some reasonable points here prairie boy, but nothing that a decent planner can't overcome! Firstly the capital gains issue is rather easily made moot by a corporate class fund. This will defer the tax as long as you remain invested in that series of funds. Further, no matter how the gains are earned (be they dividends or interest) they come out as a capital gain. This is much more tax favrouable.
Leveraging is riskier, no question about that...you're investing with borrowed money. That being said however, investing for the longer term in a diversified portfolio without margin calls reduces this risk.
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