First post for me. I've used PRC Gold and Online for an almost 2 years. Mid-year, we made an unplanned cash purchase of an investment property. Almost done with the renovations required to insure it for renting, I'd like to use PRC to compare financing scenarios. E.g., I'm retired, so should I refinance to cover annual expenses or draw down investments? My thought was to backup my current work (which has no record of the purchase and renovation) and start a brand new plan with current assets as though it were the beginning of the year (2205 or 2026).
Does anyone have any experience with this or advice?
This is ultimately a comparison of the return you hope for from the portfolio vs. the certainty of interest payments on taking out a loan. That gets complicated as you never know if the market is going to soar or tank and that will determine which option would have been cheaper.
The better comparison is simpler - if you have any bonds, then you can simply compare the interest rate you are earning on the bonds vs. the interest rate you will be paying on the loan. Since it likely that the interest rate you would have to pay on the loan exceeds what you would earn on the bonds, use your bonds, not a loan.
