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etalian posted:IPOs especially for startup companies tend to be fools gold. Except the IPO is up 60%? And LC has actually had revenue. quote:
So put it in a Roth?
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Dec 13, 2014 17:32
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etalian posted:IPOs especially for startup companies tend to be fools gold. Great, thank you for sorting out both IPO investing and the tax issues surrounding investment income in that one post there
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Dec 13, 2014 19:14
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Bloody Queef posted:So put it in a Roth? An IRA through LC requires $5k for the first year and $10k for subsequent years or else you're charged $100 annually. I was thinking of opening an IRA, but I wouldn't want to stick $10k in it.
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Dec 13, 2014 20:08
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Lending tree is basically a fun money type investment which not should be used for more than 5% of your total account. It's also very tax inefficient for investor type accounts vs. more traditional investments.
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Dec 13, 2014 20:46
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etalian posted:Lending tree is basically a fun money type investment which not should be used for more than 5% of your total account. Based on your other posts in BFC, I see you're new to investing and money matters. That's really cool that you're posting in here to gain some knowledge and improve yourself. Keep asking questions and absorbing all the knowledge. Don't, however, talk out of your rear end on a subject you know basically nothing on. First, it's Lending Club. Lending Tree is that lovely mortgage finder website. Second, no one is really qualified to make a blanket statement about how everyone should invest their money. People have very differing financial situations and goals. I personally agree that for my case 5% is about what I put into LC, but that number could/should go up or down for any other random person or even as my total amount invested goes up. Third, as was pointed out, you can use a tax advantaged account to do LC (5k first year/10k subsequent year minimums or a $100 fee). All interest, non qualified dividends, and short term capital gains are taxed at OI rates, the same as Lending club, so it's not some weird thing. A far more appropriate post would have been, quote:I'm a little leery of Lending Club, what percentage of your portfolio are you guys putting into it and how do you mitigate your risk?
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Dec 14, 2014 13:58
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Cunningham's Law: "The best way to get the right answer on the Internet is not to ask a question, it's to post the wrong answer."
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Dec 15, 2014 15:17
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chemosh6969 fucked around with this message at 22:08 on Dec 15, 2014 |
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Dec 15, 2014 17:01
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Is there any place to access their loan-by-loan data stats? If I could do analysis on the loan types/FICO/blah blah this seems like an interesting thing to try out, but otherwise I'd feel uncomfortable being anything but very conservative.
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Dec 16, 2014 20:31
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Yes, they have CSVs you can download, which are quite large. https://www.lendingclub.com/info/download-data.action
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Dec 17, 2014 01:56
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Yeah I was able to come up with a decent cross-section analysis but found out I can't even trade in Maryland so it was mostly a waste of time. I've got a few variables that are worth about 5% in default rate worth avoiding out of the sample though; never got to include more recent loans so may or may not accurate.
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Dec 17, 2014 02:07
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LC is now available in Massachusetts. I got burned before by Prosper, but that was kind of my own fault. Should I jump aboard?
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Dec 17, 2014 18:55
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Moneyball posted:LC is now available in Massachusetts. I used Prosper back during the dark days of 2005-2007. Default rates seem to be much better this time, around 2-4%, and they are much more selective in screening loans. Probably half to a third of the loans don't get issued after funding because they fail LC's vetting. Setting up the automatic investing and only buying the minimum $25 amount on each loan seems to do the trick. Also, there's almost zero of the "expanding my ebay business!!!11oneone" loans that I remember from Prosper, it's almost all CC refinancing. That said, there's always the chance the economy and credit environment does another swan dive and all their statistical models go in the toilet, so don't make LC 100% of your investment portfolio.
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Dec 17, 2014 20:03
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MJBuddy posted:Yeah I was able to come up with a decent cross-section analysis but found out I can't even trade in Maryland so it was mostly a waste of time. Yeah due to regulatory hurdles man states don't allow you to even open a investment account and other other have extra hoops to hop through.
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Dec 18, 2014 03:59
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MJBuddy posted:Yeah I was able to come up with a decent cross-section analysis but found out I can't even trade in Maryland so it was mostly a waste of time. Did you check other companies? I can do Prosper in Oregon but not Lending Club.
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Dec 18, 2014 17:10
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I'm personally starting to lose faith in LC. It's been 16 days since I've been able to buy a note that matches my criteria -- I've only been at it for a year or so, but I don't think it's ever been this bad. Money's just piling up in my account not doing anything 
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Dec 18, 2014 17:52
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Amun posted:I'm personally starting to lose faith in LC. It's been 16 days since I've been able to buy a note that matches my criteria -- I've only been at it for a year or so, but I don't think it's ever been this bad. Money's just piling up in my account not doing anything Are you using IR? If so, you need to update your account info, and include the correct API key. I had an issue with it also, I actually had over 1k in available cash till I got it straightened out. I had to reset my API in LC, and then update it in IR. I think I need more acronyms.
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Dec 18, 2014 18:34
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Amun posted:I'm personally starting to lose faith in LC. It's been 16 days since I've been able to buy a note that matches my criteria -- I've only been at it for a year or so, but I don't think it's ever been this bad. Money's just piling up in my account not doing anything Another problem at least for regular investors is institutional investors now have a big investment in the concept: http://blog.lendingclub.com/a-note-on-our-recent-loan-volume/ Basically it's tough to compete for good notes when you go against institutional investors who have millions in case to scoop up the better notes.
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Dec 19, 2014 04:12
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I don't have a ton of money invested, but my biggest issue lately has been that, of the few notes available, the ones I do attempt to buy end up dying during LC's review process. I've been trying to buy 2 notes for the last two weeks and still have that 50 bucks sitting around doing nothing. I don't have enough invested/care enough to be using IR, nor do I have enough invested to use automatic investing. It was pretty easy to build a $500 portfolio a few months ago, but it's starting to seem rather difficult to roll incoming payments into new notes.
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Dec 19, 2014 19:41
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April posted:Are you using IR? I am, and I'm still using your filters! Thanks for the heads up - I updated my stuff so we'll see what I catch. You'd think IR would be better about communicating this stuff...
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Dec 19, 2014 20:01
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Amun posted:I am, and I'm still using your filters! Thanks for the heads up - I updated my stuff so we'll see what I catch. You'd think IR would be better about communicating this stuff... I got an email from them saying that I needed to update my API, but it didn't work the first time I did it. So I reset it in LC, then put the new one into IR, and no problems since. Good luck!
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Dec 19, 2014 20:10
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withoutclass posted:I don't have a ton of money invested, but my biggest issue lately has been that, of the few notes available, the ones I do attempt to buy end up dying during LC's review process. I've been trying to buy 2 notes for the last two weeks and still have that 50 bucks sitting around doing nothing. I don't have enough invested/care enough to be using IR, nor do I have enough invested to use automatic investing. It was pretty easy to build a $500 portfolio a few months ago, but it's starting to seem rather difficult to roll incoming payments into new notes. I ran into that too, but honestly that means that the vetting process kicked them out so it's generally for the best that you couldn't give them your money. It can take a while to get those last few notes however. Didn't they open up automated investing to everyone recently? I don't have a ton on LC but still set up automated investing since I was terrible at checking my account regularly to get that sick nasty compounded interest.
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Dec 19, 2014 23:26
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Amun posted:I'm personally starting to lose faith in LC. It's been 16 days since I've been able to buy a note that matches my criteria -- I've only been at it for a year or so, but I don't think it's ever been this bad. Money's just piling up in my account not doing anything If it's really bad, just lower your standards a bit. There's obviously some details that are significantly better than others, but as long as you avoid small business and unverified incomes, you're avoiding the biggest failure prone variables at every grade (based on what I loaded up and looked at from 2007-2011 3 year loans. chemosh6969 posted:Did you check other companies? I can do Prosper in Oregon but not Lending Club. I'll look into it more, thanks! I did see that I should be available there but hadn't had time this week since to see if that was with a bunch of caveats, an industry thing, etc.
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Dec 20, 2014 01:26
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Knightmare posted:I ran into that too, but honestly that means that the vetting process kicked them out so it's generally for the best that you couldn't give them your money. It can take a while to get those last few notes however. It's opened up but the minimum is $2500
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Dec 20, 2014 20:15
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withoutclass posted:It's opened up but the minimum is $2500 They want to make sure you can get appropriately diversified with that requirement I think.
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Dec 21, 2014 09:03
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Moneyball posted:LC is now available in Massachusetts. I'm in MA and I'm doing it (I made a few bucks in prosper back in the day). Parsing over their statistics sold me on it. Keisari posted:They want to make sure you can get appropriately diversified with that requirement I think. I just did it with $500? Though it's $500 I deposited over a year ago and half forgot about, back when I thought I'd jump into the secondary market. April posted:Are you using IR? If so, you need to update your account info, and include the correct API key. I had an issue with it also, I actually had over 1k in available cash till I got it straightened out. I had to reset my API in LC, and then update it in IR. What's IR? asdf32 fucked around with this message at 16:51 on Jan 2, 2015 |
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Jan 2, 2015 16:48
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asdf32 posted:I'm in MA and I'm doing it (I made a few bucks in prosper back in the day). Parsing over their statistics sold me on it. IR is Interest Radar. I use it to auto-buy my notes.
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Jan 2, 2015 17:17
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A year ago I dropped a few grand in, and a few months ago I started selling off notes, just now my account is zero. Earlier in this thread I explained why this not a tax advantaged option and not an ideal/efficient means of investing for the majority of us, hence the reason I pulled out. Just wanted to share my final experience with LC. I ended up with a 7% return which isn't bad. I likely would have gotten a slightly higher return as I sold off some notes at discount for the borrowers that would go 30 days late every other month but get back to current, I just wanted to get off the p2p lending hype train. I had about 10 notes that paid off early, which as a lender you don't want this to happen, but would take it over a default of course. I had a few notes default right around the 6 month mark. The majority of the defaults were people at Grade B btw, even an A grade borrower defaulted with no prior delinquencies. In short, this is nothing different than a bond fund. It's just you are the fund manager and are setting your criteria. In a few weeks I'll be getting my various 1099s and will be paying taxes on that income. My index fund investments are getting at or above this, but are tax advantaged (IRA, HSA, 401k) and until I max those out I would not consider doing this again. And even then, it would be about 5% to 10% of my total investments, depending on my bond allocation at that time. A lot of people on Prosper got burned at the economic downturn and it wasn't entirely because Prosper was lax in vetting the borrowers. A lot of excellent credit borrowers defaulted then too, and this "bond fund" investing strategy is absolutely insane if a significant portion of your nest egg is in here (anything more than 10%). I will say LC is superior to Prosper, and it as a company is smooth, just for the reasons stated above and previously in this thread it makes zero sense to go near it until certain criteria are satisfied. Best of luck to everyone.
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Jan 3, 2015 22:55
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nicky_glasses posted:Best of luck to everyone. It looks like LC is now offering IRA/401K options. So there's that.
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Mar 6, 2015 20:57
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What does Lending Club use to calculate it's APR? I've got decent credit (~700), the wife and I make >70k a year, and I would like to consolidate my credit cards and possibly pay a little less a month than I am now, but when I do Lending Club's site, it will never give me anything below 25%. At this rate I'll just attempt a consolidation loan with my credit union, but that's kind of ridiculous it won't even look at giving me a decent rate. e: I see where I asked a similar question, but it's kind of stupid that it's trying to shove 27% APR down my throat and my credit isn't even that bad. Gothmog1065 fucked around with this message at 02:33 on Mar 14, 2015 |
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Mar 14, 2015 02:25
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Gothmog1065 posted:What does Lending Club use to calculate it's APR? I've got decent credit (~700), the wife and I make >70k a year, and I would like to consolidate my credit cards and possibly pay a little less a month than I am now, but when I do Lending Club's site, it will never give me anything below 25%. At this rate I'll just attempt a consolidation loan with my credit union, but that's kind of ridiculous it won't even look at giving me a decent rate.
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Mar 14, 2015 03:07
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Definately recommend something other than p2p lending as people are paying me more than credit card rates for loans. 0% APR as suggested is much better and will give you a chance to knock back some of the debt before interest kicks in.
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Mar 14, 2015 03:22
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SiGmA_X posted:Why don't you try to do a 0% credit card balance transfer? The only question is would this apply even if the balance is larger than the limit itself? That's probably the only real reason I haven't done that yet.
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Mar 14, 2015 04:13
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Gothmog1065 posted:The only question is would this apply even if the balance is larger than the limit itself? That's probably the only real reason I haven't done that yet. I think the key thing in any regard is that paying the card off faster will help a lot more than a lower interest rate, but if you're at 20%+ and can get 0% for 12-15-18mo for 0-3% transfer fee, depending on your balance and payoff time that can save you a fair bit of money. From reading Chase's page, I think you want the Slate card as it offers 0% transfer fee if done w/in 60 days, and 15mo 0% interest. Get it paid off real quick and its worth it as it is (I expect) really low effort for a substantial interest reduction. https://creditcards.chase.com/credit-cards/slate.aspx
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Mar 14, 2015 05:26
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Six months in and I've added a bit of money to my account and stuck to loaning $25 for each loan. The calculation on the site says my gross interest is 17.26% pa allowing for default rate. This morning I crossed the threshold of paying my first $100 in tax (tax rate is about 28%). There's some decent income but I'll be more interested to see what happens as some defaults occur.
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Mar 19, 2015 21:19
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I had my first bad debt note in the last month. Someone managing to go broke less than 9 months after the peer to peer service was launched must have been a dire situation.
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Jun 24, 2015 03:58
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Devian666 posted:I had my first bad debt note in the last month. Someone managing to go broke less than 9 months after the peer to peer service was launched must have been a dire situation. I've stopped even caring about individual defaults at this point. I basically just check in every now and then to make sure the rate is under 5%. Once you get several hundred notes being reinvested through AI, the impact of any one $25 slice isn't a problem. Makes tax documentation a bit of a pain though. I had to really dig to find that PDf they made about what forms to use.
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Jun 24, 2015 11:51
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Is it still worth it to begin participating in something like LC? I'm considering following the same strategy other goons on here have; namely, getting the $25 minimum stake in a loan, and putting a percentage of my income each month onto the site. Should I start with the $2500 minimum to do Automated Investing? That seems like it would be the way to go, as I'm not particularly interested in slowly cherry-picking investments.
railroad terror fucked around with this message at 15:03 on Jun 24, 2015 |
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Jun 24, 2015 14:58
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railroad terror posted:Is it still worth it to begin participating in something like LC? I'm considering following the same strategy other goons on here have; namely, getting the $25 minimum stake in a loan, and putting a percentage of my income each month onto the site. Should I start with the $2500 minimum to do Automated Investing? That seems like it would be the way to go, as I'm not particularly interested in slowly cherry-picking investments. I would if I already had investments elsewhere. I wouldn't start with this.
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Jun 24, 2015 16:21
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chemosh6969 posted:I would if I already had investments elsewhere. I wouldn't start with this. I've got decent investments in mutual funds and my 401K -- I'm looking for something new to diversify a bit, and I don't mind the risk that LC has.
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Jun 24, 2015 17:12
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railroad terror posted:Should I start with the $2500 minimum to do Automated Investing? That seems like it would be the way to go, as I'm not particularly interested in slowly cherry-picking investments.
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Jun 24, 2015 17:27
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