Timeline for Take out a loan vs. sell bond investments
Current License: CC BY-SA 3.0
11 events
| when toggle format | what | by | license | comment | |
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| Apr 30, 2015 at 23:26 | comment | added | AbraCadaver | Well have at it. I am coming at this from a far from being retired debt free professional, so with the exception of a primary mortgage for a new costlier home I'm not a borrower. | |
| Apr 30, 2015 at 20:59 | comment | added | stannius | Hardly; otherwise I wouldn't be here asking the question. I would take a positive expectation bet. However it seems to me that taking out a loan while owning bond investments (in a taxable account) is a double bet on interest rates not going up: the HELOC is a variable interest rate; and the bond investments would go down if interest rates went up. | |
| Apr 30, 2015 at 19:27 | comment | added | AbraCadaver | Also, the stock market is at all time highs, so you're betting on it continuing to gain with no downturns in the time it takes you to pay back the loan. | |
| Apr 30, 2015 at 19:25 | comment | added | AbraCadaver | @stannius: Keys are "expected" and "ignoring everything else". But it sounds as though you've made up your mind already ;-) | |
| Apr 30, 2015 at 19:18 | comment | added | stannius | I would borrow money to invest if the expected value of the investment was higher than the interest rate on the loan. | |
| Apr 30, 2015 at 18:12 | history | edited | AbraCadaver | CC BY-SA 3.0 |
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| Apr 30, 2015 at 18:09 | comment | added | AbraCadaver | @Raze: If you ignore risk. See my edit. | |
| Apr 30, 2015 at 18:07 | history | edited | AbraCadaver | CC BY-SA 3.0 |
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| Apr 30, 2015 at 17:55 | comment | added | Raze | I would absolutely borrow money to invest - if the return on the investment is higher than the cost of the money borrowed. In order to decide between selling the investment and taking the HELOC a comparison has to be made between the cost of the HELOC and the expected return on the potentially sold investment. | |
| Apr 30, 2015 at 17:52 | history | edited | AbraCadaver | CC BY-SA 3.0 |
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| Apr 30, 2015 at 17:46 | history | answered | AbraCadaver | CC BY-SA 3.0 |