Borrow a lump sum at the IRS minimum rate, invest it, and fund the payments (and optional living withdrawals) by selling from the portfolio — backtested against real historical S&P 500 total-return years, with an optional after-tax view.
Loan Details
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Loading current IRS minimum rate…
Interest-only for this period, then automatically recalculated to fully amortize by the original maturity date.
See how this scenario would have played out starting in a specific past year.
Replay a real historical sequence of S&P 500 returns — pick which one below.
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Held aside for near-term spending instead of invested day one.
Which historical S&P 500 sequence to replay. Goes back to 1928 — try 2008 or 1929 to stress-test a downturn.
Pick a starting market. Optionally add a phase to transition into a different one later — e.g. start in a Depression and switch to Normal Cycle after 10 years, to model a market that's bad now but turns around.
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Month 13 = start of year 2 (the reserve above covers year 1).
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Wages, pensions, etc. — used to place the realized gain in the right tax bracket.
Estimates federal long-term capital gains tax (0/15/20%, 2026 brackets), the 3.8% Net Investment Income Tax, and state tax on gains realized from selling shares to fund payments/withdrawals — using the portfolio's known, exact cost basis (the whole position was purchased on day one). Dividends aren't modeled separately here. Not tax advice.
📊 Results
Ending Loan Balance
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Should reach $0 at maturity
Total Interest Paid
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Ending Portfolio Value
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Max Drawdown
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Worst peak-to-trough dip
Total Living Withdrawals
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Total Taxes Paid
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IRS Minimum Rate (AFR)
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Applicable federal rate
Portfolio Value vs. Loan Balance Over Time
Annual Summary
Withdrawal & Tax Action Schedule
Recommended Sell Date
Purpose
Amount
Cash Needed By
Need a written agreement for this loan? Use the Personal Loan Calculator to generate a promissory note with the same interest-only option.
This is a historical backtest, not a forecast. Past S&P 500 returns don't predict future returns — a different sequence of years (especially a downturn early in the loan) can produce a very different, or negative, outcome ("sequence-of-returns risk"). The after-tax module is a simplified estimate (no dividends, no tax-loss harvesting, no state-specific capital-gains carve-outs beyond what's already excluded from the state data) and is not legal, investment, or tax advice — consult a financial advisor and tax professional before borrowing to invest.