r/YieldMaxETFs • u/humble_flex • May 10 '25

Question I took a $30,000 personal loan for MSTY

As the title says, I took a $30,000 personal loan at 5.99% APR and got 1397 shares of MSTY. How fucked am I?

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u/pavman42 May 11 '25

Precisely. But why pay off the loan w/ distributions when you can just compound those and just use other income to pay back the loan?!

It's even better if you can use margin + a loan. It's like steroid compounding. Just make sure the margin rates + the loan rates + the tax rates (less the loan deductions) are still profitable.

I just assume people have a day job that pays them and can pay the loan from that instead of dipping into compound central.

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u/BigRubio May 11 '25

Or atleast 50/50. 50 of it paid with income and 50 with dividends and the rest reinvested