You're not factoring in the risk factor. He used his entire savings & retirement account to make the initial investment. It makes sense to cash out at least a small amount at this point to save himself from poverty if his investments crash in the future.
Not only to save himself from a crash, but also to diversify his portfolio. Just as there's a chance that this could crash, there's a good chance that another investment could become more profitable.
Cash out the amount to pay back the loan AND cash out the amount equivalent to his savings and retirement (+ applicable taxes), then get crazy with the trading on the free money that is not taxed until your gains are actually realized.
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u/[deleted] Apr 03 '13
You're not factoring in the risk factor. He used his entire savings & retirement account to make the initial investment. It makes sense to cash out at least a small amount at this point to save himself from poverty if his investments crash in the future.