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I'm not saying you're wrong, but do you have data supporting this statement? I've been interested in peer to peer lending for awhile and this turns me off a bit

I'm not saying you're wrong, but do you have data supporting this statement? I've been interested in peer to peer lending for awhile and this turns me off a bit.

twohlix_ 11y ago
I've made 8-10% per year (defaults included) for the past 2 years on lending club. There are investment limits based on your income that you legally have to follow. I believe its 5% of your income/assets max. They don't confirm your income/assets but there are regulations related to it. It also takes work to liquidate quickly. So if not selling notes on a second market you're locked into your investments for up to 5 years.
- MikeTV 11y ago
  Thanks for this, didn't know there was a limit. Apparently it's 10% of your net worth [0] and there are other restrictions by state [1]. Which is a shame, because it beats the pants off the stock market. [0] http://kb.lendingclub.com/investor/articles/Investor/Is-there-a-maximum-investment-amount http://kb.lendingclub.com/investor/articles/Investor/Is-ther... [1] http://kb.lendingclub.com/investor/articles/Investor/What-are-the-current-State-and-Financial-Suitability-conditions http://kb.lendingclub.com/investor/articles/Investor/What-ar...
fweespeech 11y ago
Well the person I was replying to was suggesting G notes: https://www.lendingclub.com/info/demand-and-credit-profile.action https://www.lendingclub.com/info/demand-and-credit-profile.a... 8.99 / 23.47 = 38% https://www.lendingclub.com/info/statistics-performance.action https://www.lendingclub.com/info/statistics-performance.acti... Their median return is 7.2%. The top 90th percentile is 9%. > For example, if you invested $100,000 in lower grade (C-G) notes on Lending Club with an aggregate 12.0% net annualized return, you'd receive approximately $6,000 in cash payments each month. That just isn't a situation that happens for 99% of people. Personally, I've seen worse returns and I know a number of other people that feel the way Lending Club came up with these numbers is fudged a bit since almost everyone I know ends up below the median. https://personal.vanguard.com/us/funds/snapshot?FundId=0040&FundIntExt=INT https://personal.vanguard.com/us/funds/snapshot?FundId=0040&... The reality is, its returns are reasonably high risk [as you are limited in how many you can invest due to the caps the other guy mentioned] and if you get a bad basket you are screwed. I'd rather invest in stocks given the real returns for the average person in Lending Club are about the same. Also, literally 0 of its proponents factor in what happens during a major recession [ default rates will skyrocket ] which will make even these modest returns terrible very quickly as loans default.

I'm not saying you're wrong, but do you have data supporting this statement? I've been interested in peer to peer lending for awhile and this turns me off a bit.

twohlix_ 11y ago

I've made 8-10% per year (defaults included) for the past 2 years on lending club. There are investment limits based on your income that you legally have to follow. I believe its 5% of your income/assets max. They don't confirm your income/assets but there are regulations related to it. It also takes work to liquidate quickly. So if not selling notes on a second market you're locked into your investments for up to 5 years.

MikeTV 11y ago
Thanks for this, didn't know there was a limit. Apparently it's 10% of your net worth [0] and there are other restrictions by state [1]. Which is a shame, because it beats the pants off the stock market. [0] http://kb.lendingclub.com/investor/articles/Investor/Is-there-a-maximum-investment-amount http://kb.lendingclub.com/investor/articles/Investor/Is-ther... [1] http://kb.lendingclub.com/investor/articles/Investor/What-are-the-current-State-and-Financial-Suitability-conditions http://kb.lendingclub.com/investor/articles/Investor/What-ar...

fweespeech 11y ago

Well the person I was replying to was suggesting G notes: https://www.lendingclub.com/info/demand-and-credit-profile.action https://www.lendingclub.com/info/demand-and-credit-profile.a... 8.99 / 23.47 = 38% https://www.lendingclub.com/info/statistics-performance.action https://www.lendingclub.com/info/statistics-performance.acti... Their median return is 7.2%. The top 90th percentile is 9%. > For example, if you invested $100,000 in lower grade (C-G) notes on Lending Club with an aggregate 12.0% net annualized return, you'd receive approximately $6,000 in cash payments each month. That just isn't a situation that happens for 99% of people. Personally, I've seen worse returns and I know a number of other people that feel the way Lending Club came up with these numbers is fudged a bit since almost everyone I know ends up below the median. https://personal.vanguard.com/us/funds/snapshot?FundId=0040&FundIntExt=INT https://personal.vanguard.com/us/funds/snapshot?FundId=0040&... The reality is, its returns are reasonably high risk [as you are limited in how many you can invest due to the caps the other guy mentioned] and if you get a bad basket you are screwed. I'd rather invest in stocks given the real returns for the average person in Lending Club are about the same. Also, literally 0 of its proponents factor in what happens during a major recession [ default rates will skyrocket ] which will make even these modest returns terrible very quickly as loans default.