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URL:  http://boards.fool.com/ajquot-why-are-you-not-going-to-pay-off-your-30459646.aspx

Subject:  Re: Settlement Date:  1/1/2013  12:06 AM
Author:  401kinvestor Number:  306585 of 309666

AJ"
Why are you not going to pay off your $13k car loan?

Oh, wait, you're trying to make money from arbitrage, because you are getting a 2.8% yield from JPM, while your car loan is 'only' costing you 2.49%.

But after taxes, you are going to be losing money. Even if the 15% tax rate survives the fiscal cliff, adding on 3.36% or 4.24% Arizona state tax, you will lose 18% or 19% from your 2.8% dividend rate, so you will net, at best 2.3% - which is less than your car loan rate. And if the Federal rate on dividends does go up to ordinary income rates, it will probably be a 28% or 29% loss to taxes, netting you about 2.0%

But wait, there's more....

Paying off your car loan with the $20k (assuming the other money is actually going to the insurance company and hospita