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Originally Posted by jimbethesda

Are those riskless? (Hint, no). I used stocks because you cited their expected returns in your post about opportunity costs.

Crypto and angel are going the wrong way on the risk curve to compare to loan rates.

Obviously I am kidding but I appreciate the sober attempt to help.

I have a difference of opinion on whether one needs to compare to risk-free investment returns. While that is true in theory because loan payments will be due no matter what, I think that is overly conservative. I believe one needs to compare to likely investment returns on an after-tax basis in order to have the most accurate forecast of what will happen. I wouldn't set my borrowing threshold at the 46.5% pre-tax return the S&P has returned over the last year but I do think it's reasonable to compare to the the long-term average of 6-8% pre-tax or 5.1-6.8% after-tax.