re: How many of you follow Dave Ramsey's advice for everything?

quote:

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If it's a retirement account, leave it be.


it's not. it's just a normal stock purchase account. i'd have to pay capital gains on whatever i sold which would probably be pretty high for the total amount of the loan since the stock has nearly tripled in price since i first started purchasing it.

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Cost = (($24,200 + tax/fees/warranty - $6,000)*1.0684)^n
n = how many years

Company stock account opportunity cost =
(($24,200 + tax/fees/warranty - $6,000)*1.???)^n
??? = what is exptected return from company stock over same period as loan

*You would want to sell long-term (= or > 1yr) stock before short-term (< 1yr), as short-term capital gains rate is much higher than long-term capital gains rate

Is your cost higher or lower than the stock account opporutnity cost


Give or take, this is how I would approach the decision.

IF the stock is part of your long-term retirement or other plan, by all means do not touch it. Time value of money is 8th wonder of world, and your future self will hate you for taking it out today to pay off a vehicle that will only last you a short period of life, as opposed to what the future earnings for the stock account will offer your retirement self.

Good luck