We have a major ($40k) home project we have to do. I have about $150k of MSFT stock. Should I sell stock to pay for the project or take out a loan? Am leaning toward selling but looking for opinions from anonymous people.
If you have enough cash (outside of emergency fund) just use that and build it up again in a few months. You won’t pay any loan interest and won’t have to sell the stocks.
If you had cash right now, would you take out a loan to buy Microsoft stock?
^ this is the right way to look at it.
MSFT is priced pretty nicely right now. I'd definitely sell rather than gamble on a loan.
Sell sell sell. Being debt free = peace of mind.
Why would you take a loan and pay fees and interest when you have money?
Loans are more expensive
Depends simply upon how much would be the rate of interest. Loan is not a bad thing. If rate of return on investment is higher than rate of interest on loan, it's wise to take loan and invest. I think Microsoft stock has a great potential to grow. If you think Microsoft stock would grow faster than rate of interest, take loan. On the other hand if you don't want to gamble at all, you can sell the stock. You will still have approximately 70% of stock left. So not a big deal. If it grows faster in the future, you will still enjoy the appreciation of that remainder. Or you can balance. 20k stock sell, 20k loan.
You should sell.
You should have already sold your stock if you work there. But lucky you, you didn’t, and it went up. Now double reason to sell. Unless you’ve held it and it has appreciated so much that you are looking at massive capital gains tax. Then you may want to consider other options before selling.
Sell covered calls?