Compare borrowing against your assets vs. selling them
Borrow Scenario
$932,530
Interest paid: $25,000
Sell Scenario
$834,130
Tax paid: $13,636
Borrowing wins by $98,400after 10 years
| Year | Assets (Borrow) | Loan Bal. | Int. Paid | Net (Borrow) | Net (Sell) | Diff. |
|---|---|---|---|---|---|---|
| 1 | $540,000 | $100,000 | $5,000 | $440,000 | $417,273 | +$22,727 |
| 2 | $583,200 | $100,000 | $10,000 | $483,200 | $450,655 | +$32,545 |
| 3 | $629,856 | $100,000 | $15,000 | $529,856 | $486,707 | +$43,149 |
| 4 | $680,244 | $100,000 | $20,000 | $580,244 | $525,643 | +$54,601 |
| 5 | $634,664 | $0 | $25,000 | $634,664 | $567,695 | +$66,969 |
| 6 | $685,437 | $0 | $25,000 | $685,437 | $613,111 | +$72,327 |
| 7 | $740,272 | $0 | $25,000 | $740,272 | $662,159 | +$78,113 |
| 8 | $799,494 | $0 | $25,000 | $799,494 | $715,132 | +$84,362 |
| 9 | $863,453 | $0 | $25,000 | $863,453 | $772,343 | +$91,111 |
| 10 | $932,530 | $0 | $25,000 | $932,530 | $834,130 | +$98,400 |