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The difference is that the $1M remains in the portfolio, presumably gaining value/compounding. - leosource

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Good point. As long as interest rates stay low as they have been, even average portfolio performance should beat them. The Prime rate Right now is 3.25%. I wonder what rate an uber-wealthy investor would have to pay.


Also your cap gain tax would be paid with todays dollars, whereas your interest payments and eventual payment of the loan balance will be made with inflated dollars. Inflation is trending up which is likely to continue.
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