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I signed up for Prosper, then just put a bunch of money into notes using the "Quick invest" feature with all defaults set, basically just automatically choosing any loans that are available. I realize now that this was idiotic. What's the best way to remedy this situation? Wait a few months and sell all the notes and start again?
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Mar 7, 2014 21:23
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So prosper is getting rid of their secondary loan market:quote:A Message from Prosper and Folio Investing I have a decent amount of money in both prosper and lending club. I think this is going to prompt me to slowly cash out of Prosper. I haven't used the secondary market much, but I like that it exists, one of the big draws for p2p lending for me is that it is semi-liquid. You would think that the people at prosper would understand this is a major part of its value proposition? I wasn't really ever too spooked by the LC controversy earlier in the year but it did kind of get me to start worrying about Prosper. It's a private company and under much less scrutiny. Is this a first sign of some internal troubles or am I just being paranoid? Anyone else planning to back away from Prosper because of this?
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Oct 12, 2016 04:57
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ShadowHawk posted:Are you gonna dump your loans or hold them to the end? I think I'll hold them and just cash out the proceeds instead of reinvesting from now on. Also, Lending Club too seems to have deemphasized note trading at least in their user interface, it's pretty hard to find. I found it, but it's clearly not considered a first class feature. I wonder if the note trading days numbered there too? a cat fucked around with this message at 17:03 on Oct 12, 2016 |
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Oct 12, 2016 17:00
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Canine Blues Arooo posted:I have a few hundred dollars 'extra' from my bonus this year and wanted to see if I can use that to get into P2P lending. It looks like Lending Club is the way to go. If I steal April's Bluevestments filter and throw $500~ (while taking other general advice, such as paying attention to what potential borrowers write, and how the write it, the purpose of the loan, etc.), will I at least avoid shooting myself in the foot long enough to learn the ropes to make this a potentially longer term investment? Do you have six months living expenses in cash saved, and already contribute a "normal" amount to a traditional retirement account? What time frame are you planning have this money tied up for? $500 is 20 notes which still allows for a lot of variance, meaning you could easily do worse than break even. It's definitely not that uncommon for loans to default and just a few bad coin flips and you will lose money on your investment. Though you probably won't lose the bulk of the $500 at least. Ignoring the variance issue, the big question is "would I be better off putting this in a stock index fund and not touching it?" Personally, and these are just non scientific feelings, I feel the two are fairly compatible in terms of returns and risk IF (and this is a big IF) you took out of the equation the meta consideration that this is all uncharted territory, that no one knows how these notes perform in worse market environments, that it's not a guarantee Lending Club is still a company in ten years, future regulation, etc etc etc. That said, these opinions all err on the side of extreme safety, and are not necessarily things I followed to a T throughout my life or p2p investment career, and I have probably more in lending club than is strictly a good idea right now. If this is money you would otherwise spend on dumb poo poo or something, it's not the worst place you can put your money.
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Dec 26, 2016 02:20
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Canine Blues Arooo posted:I've got money in the bank for about a half a year and contribute 10% to my 401k. I've no debt and so this money is very 'safe' money in that I'm ready to lose it all on an investment experience. Oh, yeah, you're good. Sorry, wasn't sure where you were coming from, so I just defaulted to super safe mode. There's a bunch of stats/data here: https://www.lendingclub.com/info/statistics-performance.action check out all the links below the "Lending Club Statistics" header. I use https://www.nsrplatform.com Which I think you can get totally free for the amount you're planning on putting in. They let you do some pretty quick, intuitive analysis. It helps if you google stuff like "simple lending club strategies" and then plug them in there. I never tried any competing platforms, and I'm not sure I'm 100% sold on the pay version of NSR (which I use), but there's really no drawbacks or costs for an account your size. There are competing ones that I think people have mentioned here but I've never tried, but they are probably also free for your account size.
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Dec 26, 2016 02:42
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