I have about 3% of my net worth with LendingClub. Returns have been 8%. I use the automated investing tools and don't focus at all on the number of defaults, et

I have about 3% of my net worth with LendingClub. Returns have been 8%. I use the automated investing tools and don't focus at all on the number of defaults, etc. Just let the algorithm work for you. Realize that you are basically lending money in unsecured loans, so I wouldn't let this become a huge part of your overall assets. I might go up a bit higher to like 5% of total net worth. I like that LendingClub returns are not too strongly correlated with the S&P 500. I would not even bother starting without $5K or so. Since the minimum investment is $25, you need a large number of loans to offset any harm a few defaults can cause. One word of warning: HN folks might have a tendency to get too geeky with the hands-on tuning, creating their own special lending rules to optimize returns. I would say don't bother. You are better off writing code for money and investing what you make.