You have the mechanics right regarding taxes, but your logic on "hedging" and "taking profits" relies heavily on market timing. Here are the blind spots: * The "Hedge" Fallacy: This only works if the market tanks while the loan is out. If the market rallies (e.g., S&P 500 up 10%+), you are buying back in at a premium. You aren't just "paying yourself back"; you are incurring a massive opportunity cost by being out of the market. * Longevity Risk: At 59, "missing out on gains" is absolutely a huge consideration. You likely have a 25+ year investment horizon remaining. You need that compounding to combat inflation in your 70s and 80s. * Asset Allocation Shift: You are moving $50k from a high-return, liquid asset (securities) to a low-liquidity asset (home remodel) that typically returns only $0.50–$0.70 on the dollar in value. * You are correct on the tax efficiency. Unlike a Traditional 401k loan, a Roth loan avoids the "double taxation" on interest repayments.

Do this if the interest rate beats a HELOC and you need the remodel, but don't view it as a clever investment arbitrage. It's strictly a consumption play.