User Tag List

Results 1 to 5 of 5

Thread: Loan vs Savings

  1. #1
    CaNewbie
    Join Date
    Apr 2018
    Posts
    1
    Likes Received
    0
    Trading Score
    0 (0%)


    0
    Expires on: Fri, Mar 6th, 2020
    I'm trying to make some moves in my business and I was thinking . . .

    Should I get a loan or use my TFSA (Around 30k) to invest in my current business.

    The advantage of the loan would be I will have more cashflow.

    I was thinking about getting a secured loan using my TFSA as collateral or just get a line of credit.

    Both from a TD Bank.

    What would you do?

    I'm currently 100% Debt free.

    Thx!
    This thread is currently associated with: N/A


  2. #2
    University Couponer
    Join Date
    Jan 2013
    Location
    St.Catharines/ Tottenham
    Age
    20
    Posts
    1,384
    Likes Received
    5837
    Trading Score
    8 (100%)




    Well, I don't know how much my input will help from a university student but I was in a similar situation when purchasing a car.

    I had enough in cash to pay for the car outright but I personally decided to get an Educational Line of Credit to pay for it, saving the cash in my savings just in case I ever needed to pull from that. My interest rate on the line isn't terrible (4.45%), I just wanted to have the cash left in case I needed it for the rest of my time at university.

    Might not have been the smartest move, my father doesn't see my logic, but it is what it is and I'm glad I did it.

    Just my two cents on it, hope it even helps a little

  3. #3
    Junior Canuck Arjon's Avatar
    Join Date
    Jun 2017
    Location
    Greater Toronto area
    Posts
    529
    Likes Received
    1149
    Trading Score
    2 (100%)



    As someone who started two businesses and worked in a position where I trained / advised over 100 small start-ups, I believe there's no universal best answer. It's a matter of weighing the pros and cons, which tends to involve a fair degree of subjectivity in determining the weights to assign to various considerations. Accordingly, while it can be tempting to think that the lowest-cost option is best, that's not necessarily so.

  4. #4
    Mastermind Shwa Girl's Avatar
    Join Date
    Dec 2010
    Location
    Durham Region
    Posts
    21,950
    Likes Received
    35486
    Trading Score
    7 (100%)




    Quote Originally Posted by ozarkboy View Post
    I'm trying to make some moves in my business and I was thinking . . .

    Should I get a loan or use my TFSA (Around 30k) to invest in my current business.

    The advantage of the loan would be I will have more cashflow.

    I was thinking about getting a secured loan using my TFSA as collateral or just get a line of credit.

    Both from a TD Bank.

    What would you do?

    I'm currently 100% Debt free.

    Thx!
    I see this is your first post.
    Welcome to Smart Canucks

  5. #5
    CaLoonie
    Join Date
    Nov 2010
    Posts
    158
    Likes Received
    224
    Trading Score
    0 (0%)



    debt free. good on you. do a mix of tfsa, rrsp, and then maybe small investments. (no bitcoin)

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •