Each month I plan on updating my Lending Club investments in both my taxable and Roth IRA accounts. Over the course of March, I was able to get another couple thousand invested in my Roth IRA account. As I get closer to reaching full investment in this account, things will transition to maintaining my investments and watching them grow.
Roth IRA Account:
As you can see, I am just under 80% invested, with another $875 in funding. My goal is still to have all of the original $10,000 invested by the end of April. During March, this account really took off as notes began making payments. I earned $89.60 of net interest in my Roth IRA account and my internal rate or return, using Excel’s XIRR function, increased from 2.82% to 4.68%. My weighted average interest rate in this account is 18.22%.
In my taxable account, I have $100 of notes in funding. A few of the notes that I had picked prior to the end of February weren’t issued leaving some money tied up as I was forced to reselect different notes. During March, I earned $13.33 of net interest in my taxable account and my internal rate or return, using Excel’s XIRR function, increased from 10.32% to 10.42%. My weighted average interest rate in this account is 14.98%. Like a fool I didn’t screenshot the account with the loan details extended, but I still have a late loan that I would anticipate being charged-off in the near future.
Lending Club Summary:
All told, it was a very good month for my Lending Club accounts as they brought in a total of $102.93 in net interest. For the period my overall internal rate of return came out to be 11.39%. Not too shabby! I fully expect with my risk profile that I will see loans start to sour reducing this rate of return.
Not detailed here, I have expanded from my original two criteria and added two more. I will lay these out in a couple of posts over the next couple of weeks.
I have updated my Lending Club page with this information. Please note when tracking my balance and return I do not include the accrued interest in the account, only the interest actually received net of fees, charge-offs, and defaults.
How did your peer-to-peer lending investments do in March? Have questions about peer-to-peer lending? Just ask!