**lol phone update in the middle of typing.
Mine is even better. I take a loan out, pay myself interest just like you. I pay Fidelity $12 a year to "manage" the loan, and they didn't sell any of my index funds to pay me the loan. So I still have 100% exposure to the market via my index investments, and a big fat check in my savings account.
I got a little bit riskier than you and I decided to use it to purchase vehicles because why not pay myself the loan versus the bank and I'm really not worried, if I lose my job I can come up with the cash, I'll be a very painfully, to pay off the balance
Sounds like a good angle if you want to be invested in the stock market. I really look at my 401k as a cash position and don't buy anything with it until it gets rolled into an IRA. The average amount of time at the job in IT is about 2 years, so it doesn't take long before it can be deployed.