Need Advice on Personal loan

[wanaberetiree]

I am 60 and live off of a portfolio with TRowe Price. Mostly a Roth in Media and Telecom to keep my AGI low to maximize ACA healthcare subsidies. That account is down 30% this year. I expect it to go back up and I don't want withdraw funds when they are down. TRowe does not lend money against the portfolio and I don't carry Homeowners insurance so home equity loan is not an option. Chase Visa has offered me a personal loan. I wonder if there are any better options. I would like to borrow 40,000 for Dental Implants and a new roof. I am debt free as of now. Will any other company lend money using my portfolio as collateral.

Any advice or opinion is appreciated.

Schwab has this https://www.schwab.com/pledged-asset-line
Maybe TRowe Price offers something similar?

 

[gayl]

I’m puzzled. How high is the insurance that you are willing to risk a 440k home total loss?

Yeah I gulped hard on that one!! Risking all 440k. I don't like paying 427m on my home / earthquake (live in California) / auto / umbrella insurance but can't imagine doing without

 

[OldShooter]

The local dental college 30% discount, 2 sterilization scandals, and long waits so I decided against it.

Public university clinic? After sterilization scandals it is probably the most sterile facility in 100 miles! Ask them what they have done. I would not worry too much about this if their explanation was credible.

Re long waits, is there urgency in your need? You have really not said. Certainly there is not urgency on doing multiple teeth. Saving 30% of a big number is a big number.

 

[waynezo]

Thanks to all who replied. I understand the risks of not having Insurance (My friend is a claims adjuster) and being in 100% equities. I live a simple life and am comfortable with my retirement portfolio. I can take the money out and still be fine. I would rather take the money out when the market is up. I don't usually borrow money (paid cash for my House). My only loan was on a car at 3% for 5 years. Of course my investments returned much more than 3%.
My dentist is board certified and I don't mind paying him. I have an aversion to taking money out when the market is down, so if the rate is good chase personal loan sounds good for dental. Some roofers offer financing. If I don't like the rates I will keep it simple and just take the money out.

 

[Bamaman]

Most all implants in our market are done by a group of M.D. oral surgeons with 30 employees and a $450k all head MRI machine to pay for.

I found a regular dentist in another city doing simple implants for $999. Honestly, the implant was easier and simpler than getting a filling. It only took 6 minutes. I saved $3k.

Shop for the best prices on implants.

 

[Koolau]

Most all implants in our market are done by a group of M.D. oral surgeons with 30 employees and a $450k all head MRI machine to pay for.

I found a regular dentist in another city doing simple implants for $999. Honestly, the implant was easier and simpler than getting a filling. It only took 6 minutes. I saved $3k.

Shop for the best prices on implants.

That sound like it would be worth "medical travel" to me. I've never heard of implants at that price. YMMV

 

[Time2]

No. Homeowners insurance should pay if there is damage due to winds, storms, etc. i was pleasantly surprised to learn that they would not depreciate my 20 year old roof. I assume state regulation requires them to replace the roof without depreciation because many homeowners could not afford to pay if they did. We also had coverage for updated code requirements and only had to pay the $1k deductible on a $18k repair.

I have a friend that went 30 years without home insurance, We had a hurricane in 2018, a tree fell on the roof, He repaired the roof, but 4 years later still has a 40sqft hole in the gable end of his garage and the ceiling in one bedroom is gone, floor has water damage. He might have won with 30 years of no insurance payments, but now refuses to use the winnings to fix the house, or maybe the winnings are spent.

 

[RunningBum]

I would not think about being 30% down, I would be comparing the loan rate (9%) with what you think you can while paying off the loan. If you think your investment returns have a decent chance of beating 9%, get the loan. Otherwise you are better off selling part of your investments.

 

[Time2]

About a year ago I got money to facilitate the purchase of a repo fixer upper home for my daughter and son in law. They were working their way through HUD financing, but after 6 months and many delays, none of their doing, I said, I'll buy it and give you a mortgage for a couple years until you get it fixed enough to get a mortgage. The plan was 1 yr, but I made it two just in case.
I didn't have the cash and didn't want to sell anything and pay taxes. So, I moved my taxable account from Vanguard to IBKR, where they had very low margin rates, 1.50%. I borrowed enough on margin to buy the house, I was at about 40% margin, 50% and IBKR could sell some stock to get under 50%. So, because of the market volatility, and not wanting any margin call, I then got a HELOC on my home and used that to pay down the margin, just in case. The HELOC had a 6 month teaser rate of 0.99%. Great rates, I'm happy, they're happy.
Nine and 1/2 months later they got the house repaired to a point where they got a bank mortgage and paid off me off and all my loans are paid back. It worked out great, they have a house on the water leading out to the gulf that they wanted. They only have about $310,000 into it and I'm so happy they didn't find a $550,000 home that would have put them deeper in debt.
I gave them a 4% mortgage for the first year and and raised it to 6% the second year, just to give them a real incentive to get the house repaired asap. But what really did it was all the notice that mortgage rates were on the rise, they got in after the first round of increases, so they went with a 15 yr 3.25% mortgage. The could have went with a 30 year 4.5% mortgage. But they earn plenty to cover the 15 year and that is a much better rate. Happy daddy!

 

[travelover]

......... 2 sterilization scandals......

Yikes. You mean while they were under, they sterilized people?

 

[Koolau]

Yikes. You mean while they were under, they sterilized people?

Think of the money you save. Wisdom teeth extracted and you also join the unhooked generation at no extra charge. Win/win!

 

[waynezo]

I would not think about being 30% down, I would be comparing the loan rate (9%) with what you think you can while paying off the loan. If you think your investment returns have a decent chance of beating 9%, get the loan. Otherwise you are better off selling part of your investments.

Good point. Chase will give me 20k @ 8.9% for 36 months about 2800 in total interest. My returns should be better than that. Barring a total market meltdown the odds are in my favor.

 

[waynezo]

Yikes. You mean while they were under, they sterilized people?

The patients had to be tested for HIV and Hep C yikes!

 

[Closet_Gamer]

Good point. Chase will give me 20k @ 8.9% for 36 months about 2800 in total interest. My returns should be better than that. Barring a total market meltdown the odds are in my favor.

I'm sorry...I may have lost the plot on this thread...but where are you going to get a very high likelihood of returns exceeding 8.9% over the next 36 months?

Thanks.

 

[OldShooter]

I'm sorry...I may have lost the plot on this thread...but where are you going to get a very high likelihood of returns exceeding 8.9% over the next 36 months?

Thanks.

8.9% after tax, right? I'm interested too.

 

[Sunset]

The patients had to be tested for HIV and Hep C yikes!

This is a possible issue with ANY dental office, a lack of proper sterilization procedures being followed every day many times per day can happen and is bad.

I can easily imagine it happens in small offices and is never reported. Same in larger offices as the staff assigned to do it, are the lowest paid employees with possibly no real interest in a career of cleaning dental tools.

 

[Koolau]

This is a possible issue with ANY dental office, a lack of proper sterilization procedures being followed every day many times per day can happen and is bad.

I can easily imagine it happens in small offices and is never reported. Same in larger offices as the staff assigned to do it, are the lowest paid employees with possibly no real interest in a career of cleaning dental tools.

My dentist isn't cheap. But every member of his staff is a share holder. They all have a real stake in doing things the right way. Also, most of his staff have been on board for 10 to 30 years. It's a family - and they make me feel like a member of the family (until I get the bill!)

 

[unia]

Do you have dental insurance? Even if they only pay a portion of the implant, you get contract rates instead of rack rates. My Delta Dental plan through the VA covered about half of my $2300 implant cost. It's possible you will have to have the insurance for a year to qualify for implant coverage so get started now if you think it might make sense for you.

Try rocketloans.com, I’ve had a great experience and rates when I went through them a few months ago.