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Originally Posted by TurnedTheCorner
There's no shortgae of interesting hybrid investments out there, but the Corporate Class Fund is a new one to me. Thanks for sharing! Interest is 100% income, dividens are 75%, and capital gains are 50% if I recall correctly - are those rates still right?
I'm planning on a loan of some kind to contribute more to my RRSPs this year so that our household is tax neutral. I'm meeting with the bank tomorrow to discuss the T&Cs of an RRSP loan. if the rate is OK and the loan is flexible, I may go with that instead of drawing on my LOC. I'm concerned about flexibility because my annual bonus should arrive shortly after the contribution deadline, and I may be able to pay the loan in one shot. LOC should have no problem with this, but if the RRSP loan penalizes for this, there's no point to it for my situation that I can see.
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The rates for the dividend are actually a lot less than that. FYI, to my knowledge banks cannot do the Corporate Class funds.
It sounds like you want a loan with a deferral arrangement so that you can pay the whole thing off; the banks should offer this for you but if they do not, there are plenty of other sources that will.