I'm trying to figure out the best way to buy a new Taco and seems to me like you need a crystal ball. My options are:
1) Sell some stock and pay cash. 2) Borrow from 401k and pay myself interest. 3) Finance through bank at, currently, 4%.On the surface the 401k would seem to be the way to go but over the last 12 months it has averaged 14.6% return. So if I do that vs. borrow at 4% I'm losing 10.6% - assuming performance continues. Selling stock that may or may not perform (it's about 3% over the last 12 months, no dividends) seems like an option. Compared to bank financing I'm gaining 1%. Problem is the tax hit when I sell put's me at about -1.5%. Of course who knows what the market is going to do. I hate to finance but it almost seems like the smart thing to do. Just wondering if anyone out there has gone through the same process and might have some thoughts to share. Maybe something else I haven't considered.
Thx!