So, my company provides interest free loans of up to 12 months’ salary to employees as part of benefits. The loan will effectively be backed by retirement savings run by the company for employees (jointly funded by the company and employee), which yields money market rates, currently about 4%. Based on the monthly repayment schedule, the loan should be paid back in 8-10 years. I am considering taking the loan and putting into VT. My time horizon for the investment is 10-12 years as I’d like to be able to retire then (I am in my early 40s, so I could push my time horizon by a bit if there was a catastrophic market event..). I have assumed 7% return on average over that time horizon. I have no other debt, a fully funded 6-month emergency fund, two properties, and have already been investing 25% of my monthly pay check in VT over the last 2 years or so and plan continuing to do so.
Does it make sense to take the loan based on my approach/strategy?