| Using home equity loan to invest in mutual funds - with dividends reinvested | ||||||||||||||||||||||||||||||
| Loan amount … | 65000 | 
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Mutual funds … | 65000 | ||||||||||||||||||||||||||
| Interest rate … | 7.00% |
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Monthly div at 12% pa … | 650 | ||||||||||||||||||||||||||
| Monthly payment | 584 |
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After-tax monthly div at 12% pa … | 552.5 | - taxed @15% | |||||||||||||||||||||||||
| Final loan balance | 0 |
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Monthly div at 10% pa … | 542 | ||||||||||||||||||||||||||
| Loan period … | 180 | months |
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After-tax monthly div at 10% pa … | 460.7 | - taxed @15% | ||||||||||||||||||||||||
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| New home equity loan | Mutual fund @ 12% | Mutual fund @ 10% | ||||||||||||||||||||||||||||
| Month | Opening balance | Interest | Repay | Closing balance | Opening balance (col B) | Gross dividend @12% (col 1) | Tax @ 15% (col 2) | After-tax dividend re-invested (col 3) = (col 1 - col 2) | After-tax closing balance (col B + col 3) | Cumulative after-tax dividend re-invested (col 4) | Cumulative home equity loan repaid with own money (col 5) | After-tax net cash flows (col 6) | Opening balance (col B) | Gross dividend @12% (col 1) | Tax @ 15% (col 2) | After-tax dividend re-invested (col 3) = (col 1 - col 2) | After-tax closing balance (col B + col 3) | Cumulative after-tax dividend re-invested (col 4) | Cumulative home equity loan repaid with own money (col 5) | After-tax net cash flows (col 6) | ||||||||||
| 1 | 65000 | 379 | -584 | 64795 | 65000 | 650 | -97.50 | 553 | 65553 | 553 | -584 | -31 | 65000 | 542 | -81.25 | 460 | 65460 | 460 | -584 | -124 | ||||||||||
| 2 | 64795 | 378 | -584 | 64589 | 65553 | 656 | -98.33 | 557 | 66110 | 1110 | -1168 | -58 | 65460 | 546 | -81.83 | 464 | 65924 | 924 | -1168 | -244 | ||||||||||
| 3 | 64589 | 377 | -584 | 64381 | 66110 | 661 | -99.17 | 562 | 66672 | 1672 | -1753 | -81 | 65924 | 549 | -82.41 | 467 | 66391 | 1391 | -1753 | -362 | ||||||||||
| 4 | 64381 | 376 | -584 | 64173 | 66672 | 667 | -100.01 | 567 | 67239 | 2239 | -2337 | -98 | 66391 | 553 | -82.99 | 470 | 66861 | 1861 | -2337 | -476 | ||||||||||
| 5 | 64173 | 374 | -584 | 63963 | 67239 | 672 | -100.86 | 572 | 67811 | 2811 | -2921 | -110 | 66861 | 557 | -83.58 | 474 | 67335 | 2335 | -2921 | -586 | ||||||||||
| 6 | 63963 | 373 | -584 | 63752 | 67811 | 678 | -101.72 | 576 | 68387 | 3387 | -3505 | -118 | 67335 | 561 | -84.17 | 477 | 67812 | 2812 | -3505 | -693 | ||||||||||
| 7 | 63752 | 372 | -584 | 63539 | 68387 | 684 | -102.58 | 581 | 68968 | 3968 | -4090 | -122 | 67812 | 565 | -84.77 | 480 | 68292 | 3292 | -4090 | -798 | ||||||||||
| 8 | 63539 | 371 | -584 | 63326 | 68968 | 690 | -103.45 | 586 | 69554 | 4554 | -4674 | -120 | 68292 | 569 | -85.37 | 484 | 68776 | 3776 | -4674 | -898 | ||||||||||
| 9 | 63326 | 369 | -584 | 63111 | 69554 | 696 | -104.33 | 591 | 70145 | 5145 | -5258 | -113 | 68776 | 573 | -85.97 | 487 | 69263 | 4263 | -5258 | -995 | ||||||||||
| 10 | 63111 | 368 | -584 | 62895 | 70145 | 701 | -105.22 | 596 | 70741 | 5741 | -5842 | -101 | 69263 | 577 | -86.58 | 491 | 69754 | 4754 | -5842 | -1088 | ||||||||||
| 11 | 62895 | 367 | -584 | 62677 | 70741 | 707 | -106.11 | 601 | 71342 | 6342 | -6427 | -85 | 69754 | 581 | -87.19 | 494 | 70248 | 5248 | -6427 | -1179 | ||||||||||
| 12 | 62677 | 366 | -584 | 62459 | 71342 | 713 | -107.01 | 606 | 71948 | 6948 | -7011 | -63 | 70248 | 585 | -87.81 | 498 | 70746 | 5746 | -7011 | -1265 | ||||||||||
| 13 | 62459 | 364 | -584 | 62239 | 71948 | 719 | -107.92 | 612 | 72560 | 7560 | -7595 | -35 | 70746 | 590 | -88.43 | 501 | 71247 | 6247 | -7595 | -1348 | ||||||||||
| 14 | 62239 | 363 | -584 | 62018 | 72560 | 726 | -108.84 | 617 | 73177 | 8177 | -8179 | -2 | 71247 | 594 | -89.06 | 505 | 71752 | 6752 | -8179 | -1427 | ||||||||||
| 15 | 62018 | 362 | -584 | 61795 | 73177 | 732 | -109.77 | 622 | 73799 | 8799 | -8764 | 35 | 71752 | 598 | -89.69 | 508 | 72260 | 7260 | -8764 | -1504 | ||||||||||
| 16 | 61795 | 360 | -584 | 61571 | 73799 | 738 | -110.70 | 627 | 74426 | 9426 | -9348 | 78 | 72260 | 602 | -90.33 | 512 | 72772 | 7772 | -9348 | -1576 | ||||||||||
| 17 | 61571 | 359 | -584 | 61346 | 74426 | 744 | -111.64 | 633 | 75059 | 10059 | -9932 | 127 | 72772 | 606 | -90.97 | 515 | 73287 | 8287 | -9932 | -1645 | ||||||||||
| 18 | 61346 | 358 | -584 | 61120 | 75059 | 751 | -112.59 | 638 | 75697 | 10697 | -10516 | 181 | 73287 | 611 | -91.61 | 519 | 73806 | 8806 | -10516 | -1710 | ||||||||||
| 19 | 61120 | 357 | -584 | 60892 | 75697 | 757 | -113.55 | 643 | 76340 | 11340 | -11101 | 239 | 73806 | 615 | -92.26 | 523 | 74329 | 9329 | -11101 | -1772 | ||||||||||
| 20 | 60892 | 355 | -584 | 60663 | 76340 | 763 | -114.51 | 649 | 76989 | 11989 | -11685 | 304 | 74329 | 619 | -92.91 | 526 | 74855 | 9855 | -11685 | -1830 | ||||||||||
| 21 | 60663 | 354 | -584 | 60433 | 76989 | 770 | -115.48 | 654 | 77643 | 12643 | -12269 | 374 | 74855 | 624 | -93.57 | 530 | 75385 | 10385 | -12269 | -1884 | ||||||||||
| 22 | 60433 | 353 | -584 | 60202 | 77643 | 776 | -116.46 | 660 | 78303 | 13303 | -12853 | 450 | 75385 | 628 | -94.23 | 534 | 75919 | 10919 | -12853 | -1934 | ||||||||||
| 23 | 60202 | 351 | -584 | 59968 | 78303 | 783 | -117.45 | 666 | 78969 | 13969 | -13438 | 531 | 75919 | 633 | -94.90 | 538 | 76457 | 11457 | -13438 | -1981 | ||||||||||
| 24 | 59968 | 350 | -584 | 59734 | 78969 | 790 | -118.45 | 671 | 79640 | 14640 | -14022 | 618 | 76457 | 637 | -95.57 | 542 | 76999 | 11999 | -14022 | -2023 | ||||||||||
| 25 | 59734 | 348 | -584 | 59498 | 79640 | 796 | -119.46 | 677 | 80317 | 15317 | -14606 | 711 | 76999 | 642 | -96.25 | 545 | 77544 | 12544 | -14606 | -2062 | ||||||||||
| 26 | 59498 | 347 | -584 | 59261 | 80317 | 803 | -120.48 | 683 | 81000 | 16000 | -15190 | 810 | 77544 | 646 | -96.93 | 549 | 78093 | 13093 | -15190 | -2097 | ||||||||||
| 27 | 59261 | 346 | -584 | 59023 | 81000 | 810 | -121.50 | 689 | 81689 | 16689 | -15774 | 915 | 78093 | 651 | -97.62 | 553 | 78646 | 13646 | -15774 | -2128 | ||||||||||
| 28 | 59023 | 344 | -584 | 58782 | 81689 | 817 | -122.53 | 694 | 82383 | 17383 | -16359 | 1024 | 78646 | 655 | -98.31 | 557 | 79203 | 14203 | -16359 | -2156 | ||||||||||
| 29 | 58782 | 343 | -584 | 58541 | 82383 | 824 | -123.57 | 700 | 83083 | 18083 | -16943 | 1140 | 79203 | 660 | -99.00 | 561 | 79764 | 14764 | -16943 | -2179 | ||||||||||
| 30 | 58541 | 341 | -584 | 58298 | 83083 | 831 | -124.62 | 706 | 83789 | 18789 | -17527 | 1262 | 79764 | 665 | -99.71 | 565 | 80329 | 15329 | -17527 | -2198 | ||||||||||
| 31 | 58298 | 340 | -584 | 58054 | 83789 | 838 | -125.68 | 712 | 84501 | 19501 | -18111 | 1390 | 80329 | 669 | -100.41 | 569 | 80898 | 15898 | -18111 | -2213 | ||||||||||
| 32 | 58054 | 339 | -584 | 57808 | 84501 | 845 | -126.75 | 718 | 85219 | 20219 | -18696 | 1523 | 80898 | 674 | -101.12 | 573 | 81471 | 16471 | -18696 | -2225 | ||||||||||
| 33 | 57808 | 337 | -584 | 57561 | 85219 | 852 | -127.83 | 724 | 85943 | 20943 | -19280 | 1663 | 81471 | 679 | -101.84 | 577 | 82048 | 17048 | -19280 | -2232 | ||||||||||
| 34 | 57561 | 336 | -584 | 57313 | 85943 | 859 | -128.91 | 731 | 86674 | 21674 | -19864 | 1810 | 82048 | 684 | -102.56 | 581 | 82629 | 17629 | -19864 | -2235 | ||||||||||
| 35 | 57313 | 334 | -584 | 57063 | 86674 | 867 | -130.01 | 737 | 87411 | 22411 | -20448 | 1963 | 82629 | 689 | -103.29 | 585 | 83214 | 18214 | -20448 | -2234 | ||||||||||
| 36 | 57063 | 333 | -584 | 56811 | 87411 | 874 | -131.12 | 743 | 88154 | 23154 | -21033 | 2121 | 83214 | 693 | -104.02 | 589 | 83803 | 18803 | -21033 | -2230 | ||||||||||
| 37 | 56811 | 331 | -584 | 56558 | 88154 | 882 | -132.23 | 749 | 88903 | |||||||||||||||||||||