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I stopped investing in lendingclub once I realized the taxes on my gains. Interest is basically counted as income, which makes capital gains in stocks much more

I stopped investing in lendingclub once I realized the taxes on my gains. Interest is basically counted as income, which makes capital gains in stocks much more attractive. What I did notice that I was pretty bad at picking notes. Lots of handpicked ones flopped and a lot of random/automatic ones are still going.

baccredited 10y ago
You can invest in Lending Club via a tax deferred account like an IRA. You won't be taxed on gains that way. Agree that handpicking is a waste of time. Let the autoinvest feature work for you.
- hatred 10y ago
  You can also use 3rdparty API's like LendingRobot that promise higher returns than LendingClub's own auto-investing feature.
  - kilroy123 10y ago
    Interesting. Have you used this?
    - hatred 10y ago
      Yeah, I learnt about it from a fellow co-worker and have been using it for the last 6 months. It's pretty seamless to get started with it and has offered better returns for me then the LC's own auto investing strategy.
- bduerst 10y ago
  What's the avg return on autoinvest with lending club?
  - pmorici 10y ago
    It really depends on what type of loan grades you tell it you want to invest in but the median returns of LC investors is about 7% and depending on how you setup the auto investor but returns of 5-10% are typical. You can look at LC investor returns on their website... https://www.lendingclub.com/info/statistics-performance.action https://www.lendingclub.com/info/statistics-performance.acti...
- dmak 10y ago
  How does this work? I thought you can't pull money out? So how are you avoiding the taxes this way?
akg_67 10y ago
One way to convert future interest income to capital gain is to buy notes on primary platform and sell notes on secondary platform at a small markup. I am able to turnover about 15% of my Lending Club portfolio this way and generate capital gains in lieu of foregoing future interest income.

baccredited 10y ago

You can invest in Lending Club via a tax deferred account like an IRA. You won't be taxed on gains that way. Agree that handpicking is a waste of time. Let the autoinvest feature work for you.

hatred 10y ago
You can also use 3rdparty API's like LendingRobot that promise higher returns than LendingClub's own auto-investing feature.
- kilroy123 10y ago
  Interesting. Have you used this?
  - hatred 10y ago
    Yeah, I learnt about it from a fellow co-worker and have been using it for the last 6 months. It's pretty seamless to get started with it and has offered better returns for me then the LC's own auto investing strategy.
bduerst 10y ago
What's the avg return on autoinvest with lending club?
- pmorici 10y ago
  It really depends on what type of loan grades you tell it you want to invest in but the median returns of LC investors is about 7% and depending on how you setup the auto investor but returns of 5-10% are typical. You can look at LC investor returns on their website... https://www.lendingclub.com/info/statistics-performance.action https://www.lendingclub.com/info/statistics-performance.acti...
dmak 10y ago
How does this work? I thought you can't pull money out? So how are you avoiding the taxes this way?

akg_67 10y ago

One way to convert future interest income to capital gain is to buy notes on primary platform and sell notes on secondary platform at a small markup. I am able to turnover about 15% of my Lending Club portfolio this way and generate capital gains in lieu of foregoing future interest income.