[disneysteve]

Originally Posted by sweeps

The 4.5% load isn't a valid analogy, in my opinion. That is an example of overpaying to invest. This is a matter of interest rate arbitrage... a perfectly acceptable strategy.

However, HD, to answer your point. It's splitting hairs I agree. But the difference to me is that noppenbd doesn't have the available cash flow now. He's accelerating beyond his natural investing capability. And, as you mentioned it's a variable rate. If interest rates go up fast, he's going to get the double whammy -- the HELOC is going to go up and his stock investment will likely go down.

I agree. I think there is a fundamental difference between keeping a loan you already have and taking out a new one for the sole purpose of investing the money.