P2P lending

PayPal GkNQ32q
Feb 8 15 Comments

Anyone tried p2p lending? Most of the websites says ~7% + returns ? Did anyone try and how much returns did you get ?

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TOP 15 Comments
  • LinkedIn bored🐷
    Just buy corporate bonds. Much less risk and good returns.
    Feb 82
    • eBay / IT
      manorama

      eBayIT

      BIO
      Coder
      manoramamore
      Any good one which you had experience with ?
      Feb 8
    • LinkedIn bored🐷
      I just buy a basket of BBB rated corporate bonds from my brokerage account and hold them to maturity. I also buy some T-bills but those have lower returns.

      FYI T-bills yields about 2.4% per year right now. BBB rated bonds yields around 3.5% to 4% per year right now.
      Feb 9
  • Cerner
    ggyvvjgvv

    Cerner

    PRE
    Amazon
    ggyvvjgvvmore
    Used lending club for like 4 years its not worth it. Its worst then SNP or any other good index fund. My return is like -1.5 percent after 4 years.
    Feb 80
  • Amazon / Engtylium
    Used lending club. Downsides are its hard to get out. I've been trying to cancel my account for the last 2 years but cant liquidate my final loans because they are under water. Returns are fine if you hold long term. I prefer real estate.
    Feb 80
  • Jet.com / Other
    gtfoorgtfo

    Jet.comOther

    PRE
    Starbucks
    gtfoorgtfomore
    I didn’t change default settings on LendingClub, get 4.25% a year. 7% is too much risk IMO.
    You can also check out muni bonds (ETF:HYD) - 4.45% return, no federal tax
    Feb 83
    • PayPal GkNQ32q
      OP
      Is this liquid ? Any lock in period ?
      Feb 8
    • Jet.com / Other
      gtfoorgtfo

      Jet.comOther

      PRE
      Starbucks
      gtfoorgtfomore
      It’s ETF with monthly dividends, couple billion in it so I’d say yes, it is liquid
      Feb 8
    • PayPal GkNQ32q
      OP
      Looked at the chart does not see to have any returns
      Feb 9
  • Drive.ai rsrs
    Taxes as income though, right?
    Feb 81
    • Amazon 0C
      And horrible to calculate so I only went into it with an IRA. Plus there were some adverse rulings around how to deduct defaulted loans which make it less attractive. Use IRA or don't go in at all. Save taxable account for things that earn capital gains instead.

      If only to save yourself a headache trying to figure out how to file the return.
      Feb 8
  • What about people not paying back loans
    Feb 81
    • Amazon 0C
      So you will be getting like 15% interest and in the first year will be bragging about your high returns but then 10% will default and you will actually realize a 5% return because you lost 10% of your money. If you are lucky. You might only get a 3% return.
      Feb 8
  • New DuQvV7x
    Keep in mind that 3-4% has been the average rate in the. I’m years of the last decade.

    When a recession arrives the default rate spikes.

    I expect many investors to see a negative return then. You are not TBTF.
    Feb 90
  • Amazon 0C
    I am getting 5% return in practice. Put enough there to avoid getting annual fee in an IRA and now thinking of getting out. Taxes at a real b*tch so seriously considering doing it with IRA if you decide to go for it.
    Feb 80

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