IF one 12 months in the past at the moment
And paid off Oct 12, When QQQ is sitting down 30% ytd.
I am not understanding how this is able to have been a foul concept, as I had the money to pay mortgage plus any curiosity early.
My premise was that I offered all my shares close to peak suspecting an honest market crash after the beautiful foolish wanting run up. No rocket science simply taking a look at reversion to imply. Draw a line to the place indexes would have been with out the covid crash and subsequent bubble.
On the similar time I would deliberate to take the max 401k mortgage of 40k at 6% curiosity or no matter it was and use that to “promote” a portion of the portfolio to purchase again in later, however with out penalties or capital beneficial properties.
You would say it was “timing the market” however that was already my thesis for dumping all shares. I would thought-about rebalancing however did not assume bonds would do a lot better and wasn’t value difficult taxes with capital beneficial properties.
Finally I didn’t take the mortgage as I did not actually need additional cash, had no giant deliberate upcoming purchases and acquired reasonably distracted with different life occasions.
Is there one thing I am lacking the place in that time-frame this is able to have ended up being a horrible concept?
Appears to me that may have netting ~10k in my portfolio and if shares rebounded from right here about 20k.
https://www.investopedia.com/articles/retirement/08/borrow-from-401k-loan.asp
