Browsing from TSP to pay high interest debt

[Jason Avila]

I made the mistake of financing a timeshare with a 10yr 15% loan. It's about 15k. I have about 80k in my Thrift Saving Plan(TSP) which is my military investing account. I'm invested in two funds. One has made 15.9% in the past year and 21.26% in the past 3 years. The other has made 25% in the past year and 30% in the past 3 years. The question is, is it worth borrowing from it to pay this 15k? The prepayment has a 1.2% interest on it. But it all goes back to me. The only thing I would be at risk of is the opportunity costs. There's been huge growth in these so I'm worried it wouldn't be worth losing out on that. One matches the performance of the S&P 500. The other follows the the compilation of the US stocks NOT in the S&P 500.

[David Pere]

@Jason Avila It is refreshing to hear that you've already acknowledged the opportunity cost(s) and actually understand how to use your TSP and borrow from it. Not too many service members understand that well, and it saves me a lot of typing in my response hahaha.

My $0.2 since you understand the pros/cons is that the 15% timeshare is a GUARANTEED loss, whereas the stock market is a guessing game. In this case, I think borrowing might make sense. Unless you have the cash lying around somewhere else to pay it off, or there is a way to get out of your timeshare.