The market is obviously on fire': Should I take $1,000 from my brokerage account to pay off my car loan?

A reader asks The Moneyist whether selling $1,000 of stock in a taxable brokerage account to pay down a car loan would mean locking in gains—and whether there’s any downside if the market keeps climbing. The writer cites buying Royal Caribbean shares around $20 during early COVID and selling some at roughly $320, arguing it feels like a good trade even if the stock later reaches $400. The response, from “Working Stiff,” emphasizes comparing the car loan’s interest rate to the expected returns after taxes. If the rate is high (for example, 10%), paying it off can make sense; at lower rates (2%–5%), the case for keeping money invested is stronger if the investor can tolerate volatility. The letter also notes uncertainty about how long markets stay “on fire.”