My 81 year old father called me tonight and offered me a loan of $15,000 at 4% interest, calculated annually. He is offering this to my sister and I because he gave this same loan to my brother. The terms are -- he only wants the interest, no principal repayments. If he dies, the loan become a gift. (His total estate, if he died today, would be about $750,000 and he has showed us his will -- this would be divided 3 ways between my siblings and I. It's actually in a revocable trust, with the intention of avoiding probate).
I'm an infant mustachian. Started on DR two years ago to pay off debt, and I'm down to 20K in student loans at 3.375 interest, calculated daily (so about $2 a day now). Have the $1000 emergency fund, a small Roth IRA ($2700), 10K in a 457 and 60K or so in a pension (half of which I can withdraw and roll into an IRA if I leave my employment -- or all of which I can leave to ride in the Wisconsin State Employee Pension system, which is the rare, fully funded state pension system).
I'm not a knowledgeable investor -- I'm just making my way through the Jlcollinsnh stock series now. But here is what I'm thinking -- take the money, invest it in VTSAX and let it sit (in a taxable account). Pay the $600 out of pocket to my father every year. It's a foothold for me into admiral shares -- and it's a hedge against something happening to my father's estate which drains it, like getting sued over a car accident. Continue chunking away at my plan to 1)payoff student loans, 2)build up actual emergency fund and 3)save up a down payment over the next few years.
Does this make sense?