Ian (50) is a spender. His passion for motorcycles and vintage cars means he often carries personal debt.

He and his friends often talk about their retirement plans, and though a number of his friends are planning retirement in their early 60s, Ian’s current retirement savings make his planned retirement closer to 65+.

Realizing that with 15 more years of working he needs to get his spending under control if he is going to retire, Ian turns to Jacob a friend and financial advisor.


Ian’s situation is familiar to a lot of Canadians, who enjoy spending on big ticket lifestyle items, which leaves little cash left over for savings. He knows that he needs to put more of his money towards savings if he hopes to retire in his 60s.


Together, Ian and Jacob review Ian’s, financial objectives, risk tolerance, cash flow and time horizon.

The first thing Jacob does is explain to Ian the concept of good debt versus bad debt. Jacob recommends cutting back on lifestyle spending and directing more money towards savings.

As Ian is 50, a traditional savings approach, with 10 years of compound growth, will probably not achieve his goal of retiring at 60. As an option, Jacob suggests a borrow to invest strategy to accelerate his savings.


  • $250,000 investment loan
  • Interest rate of 3.75 % (Prime +0.75%)
  • Principal and interest payments over 10 years
  • Loan paid off before Ian moves into retirement
  • Monthly payments of $2,501.53 (Ian currently spends $2,500 on lifestyle debt)


Ian and Jacob discuss the risks of borrowing to invest and the fact that the loan must be paid back, regardless of the value of the investment. For Ian this is an acceptable risk and he is committed to changing his lifestyle to achieve his retirement goal.

Ian sells a few of his vintage cars and uses this money to pay off his credit card and personal loan debt. He is now in the situation where he can take the $2,500 monthly sum he was using to pay those loans, and direct it towards an investment loan.

Over 10 years, assuming an annual rate of return of 6%, Ian would have paid out a total of $250,000 in principal and $50,184 in interest (total $300,184).

His total investment savings is planned to be worth $447,711 (difference of +$147,527), putting him much closer to retirement.

  • Value of $250,000 investment after 10 years is $447,711
  • $50,184 Interest paid
  • $250,000 Loan amount
  • $147,527 Net gain

Calculations are for illustration purposes only. Actual rates and amounts may differ. Investment Loan Stories, and the figures contained therein, are hypothetical examples and are not intended to project or predict actual results. Please Note: The images of persons featured on this web site are images of models and are used for illustrative purposes only; none of these images are actual clients of B2B Bank.

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B2B Bank does not provide investment advice to individuals or advisors and does not endorse or promote any investment products. While investment loans have the ability to magnify gains, they also have the potential to magnify market losses. Leveraging involves greater risk than purchasing investments using only your own cash resources because it has the potential to magnify investment losses. The dealer and advisor, not B2B Bank, are responsible for determining the suitability of investments for their clients and for informing them of the risks associated with borrowing to invest. B2B Bank acts solely in the capacity of lender and loan account administrator. Any loan approval from B2B Bank should not be construed as an endorsement of any investment choice, program or strategy. All loans are subject to credit approval and borrowed monies are due and payable regardless of the performance of the investments purchased. B2B Bank reserves the right to request additional information or documentation at its sole discretion. The B2B Bank Investment Loan Program is available exclusively through licensed financial advisors. ®B2B BANK is a registered trademark of B2B Bank.