Investment leverage is borrowing money to purchase investments. Historically, it tends to work quite well. It isn’t for everyone, but it is a concept that can be a powerful tool for helping people achieve their financial goals sooner when it is right for them. The best way to find out if investment leverage is right for you is to become familiar with it.

Let our money work for you

Traditional investing is simple: earn money - save a portion of that money - invest money. But your money may not be working as hard as it could for you.

With investment leverage, rather than making a series of small contributions over a long period of time, you borrow a larger amount and invest it all at once. This allows a much larger investment to grow for your full investment period and you make interest payments on your loan.

An effective wealth creation strategy

There are two powerful forces driving this strategy:

1. Compound returns. An investment loan allows a larger amount to grow for longer which can generate a much larger long-term return.

2. Tax deductibility. By deducting loan interest, you are reducing your cost of investing and increasing the chance that leveraged investing will out-perform traditional investing.