I have around $40000 invested in TFSA and Non-Registered Margin Account across various broad based indices of XEQT, VFV etc. Wealthsimple is providing with the margin loan over these investments and I wanted to leverage it.
I am just testing the waters and I have invested **$11500** taken as margin loan and invested in WS private credit. Margin loan interest is around **$43 per month** for now **@ 4.45% per year.** First the first one month the fund has invested in HSA with yield of $20 and received the first month dividend of around **$74 per month** after fees. Personal Marginal tax rate is 20%. I see that interest and management fess paid as expense for the tax year can be claimed as expense if used for interest income. I wanted to know if this dividend can be claimed for the same.
I just want to understand the risks involved with this strategy and what else better can be done with the margin loan provided by WS for the long term of 10 years.
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