Comments on: Prosper https://www.writeyourownreality.com Aggressively pursuing a dream is the only way to write your own reality. Documenting my path of turning dreams into investments and success! Mon, 30 Nov 2015 00:02:06 +0000 hourly 1 By: writing2reality https://www.writeyourownreality.com/prosper/#comment-62294 Mon, 29 Dec 2014 21:06:40 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-62294 Prosper is indeed a nice solution for those looking to boost their returns on cash sitting in savings accounts earning less than inflation. Based on what you’ve said you have a fairly young portfolio with Prosper. I wish you continued success as your portfolio ages and your returns stabilize. Comparing to the stock market isn’t really apples to apples as there are completely different types of risks involved. I would agree, however, that P2P is a nice place to gain some asset allocation diversification while creating a solid stream of passive income.

Thanks for sharing your experiences!

]]> By: David Michael https://www.writeyourownreality.com/prosper/#comment-62282 Mon, 29 Dec 2014 18:10:19 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-62282 As an update for year end tally, I made a total interest of $1507 based on total investment of $13,500 deposited over 12 months to Prosper. That’s about 11.16% return with five defaults out of 603 loans. Pretty incredible! Prosper is so much more stable than the stock market. It is a great tool for diversification as I said above. Compare this to 0.85% return in our savings account.

]]> By: writing2reality https://www.writeyourownreality.com/prosper/#comment-55408 Sat, 22 Nov 2014 20:54:52 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-55408 I would certainly am an advocate of automating investments, and Prosper is no different. Good to hear you’re having success with your investments thus far. Personally, I view P2P lending as a type of fixed income, as opposed to BDCs or high-paying dividend stocks.

With the high yielding stocks, you have the risk of the dividend getting cut, and there have been plenty of examples of that happening. Certainly only you and your wife can truly evaluate your risk tolerance and the associated allocation of investments required to meet your income goals. Those IBonds sounds pretty fantastic, especially in this low interest rate environment.

Congratulations on completing the journey and enjoying the fruits of your savings and investments. Must have been a wonderful past 15 years as you traveled the world! Thanks for reading and sharing your thoughts.

]]> By: David Roderick https://www.writeyourownreality.com/prosper/#comment-54947 Thu, 20 Nov 2014 17:08:56 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-54947 I have been in Prosper for over a year now averaging about 11% using A,B,C with a few D notes. Out of 570 notes, I have had four defaults. By adding $100 a month (sometimes more), my $10,000 account (January 2014) is just about $15,000 (Nov 2014). By using a filter system, it takes me about five minutes a day to select new loans. That’s the key…have everything on automatic so time involvement amounts to a few minutes each day.

I am very impressed with this system and compare it to my Dividend Stock portfolio comprised of high paying dividends under REITS, MLP’s, and BDC’s. They also average about 11%. (The stock path is so much easier, as I have primarily monthly payouts with no fuss. More volatility but less work. Just requires an iron stomach when prices go up and down, such as the oil and gas stocks at the present time which I own (LNCO and ARP). I love the 14-15% monthly dividends as a retiree. I could care less about the price as long as they keep paying out a dividend.

Prosper primarily serves as investment diversification into five different buckets in case one or more of our investments hit the fan, like in 2008-2009. We have most of our money in IBonds invested since 2001. Steady, guaranteed, no worry, no fuss 5% a year, for 30 years. If inflation increases, the bond return increases as well. Too bad the rates are so low today that it doesn’t make sense to own new ones.

(We have been retired for 20 years and live on about 30% of our former professional income and have just completed 15 years traveling about the world and working overseas part of that time. I realize that the pros suggest 80%, but it’s quite easy to live on much less and have a great retirement.)

]]> By: writing2reality https://www.writeyourownreality.com/prosper/#comment-28699 Mon, 28 Jul 2014 14:39:05 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-28699 Sounds good Ray. I would encourage you to try and get 100 or so notes in the account to provide an appropriate level of diversification. With just 15 notes, one default can wipe our your gains pretty quickly.

Keep up the sound investing!

]]> By: Ray https://www.writeyourownreality.com/prosper/#comment-28159 Sat, 26 Jul 2014 14:32:21 +0000 http://www.writeyourownreality.com/?page_id=1182#comment-28159 We just opened a Prosper account for my wife, and she has about 15 notes now. We are buying A, B, and C notes in this account to see how it performs.

So far, so good! We set up a nice auto-buy filter and that has worked very well keeping her free cash invested.

We will drop more money in this account as we see how it performs over time.

Ray

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