As far as the relative size of the portfolios, this is for two reasons: One, a Roth IRA at Lending Club is free for those who open an account with $5,000, and have $10,000 invested by the next year. I simply avoided step one by rolling over the full $10,000 amount. No fees, no extra rollover costs. Second, my dividend portfolio currently consists of a piece of my Roth IRA, and is not the entire part of my equity investments. Outside of the money in there, I have money invested in an investment club, my 401(k) at work, and various other places. My goal going forward is to track this part of my Roth IRA initially, and expand that to a taxable account as well, with the idea that the main taxable account is what produces an ongoing stream of income to be used prior to me being old and bald at the age of 59 and a half.

As far as only thinking that the loans on Folio are bad, I would recommend you take a second look. While certainly not the easiest of methods, you can still have tremendous success on the secondary market. Here is a link to a guest blog post on LendAcademy, the premier peer-to-peer lending blog, whose author only invests via the secondary market. I would also recommend you check out the forums there as well, as there are plenty of strategies and discussion about secondary market transactions. Investing in peer-to-peer lending is absolutely a viable option, either directly or through the secondary market.