Friday, March 31, 2017

Lending Club Update




This is my first Lending Club update this year and will probably only make the updates quarterly.

At the end of December, I was sitting just under $10,000 in loans and have not made any additional contributions since. As you can see, my balance has climbed to $10,137 during the first quarter of 2017. I am reinvesting all interest payments and if I realize similar returns throughout the year, my ending loan balance will be around $10,500.

This return is lower than I had anticipated, but about what you would expect from a utility stock. Also 5.57% is much better than bank interest for sure. NO FDIC however!!

I've been a little quiet on the dividend investing front and will be making bigger moves in April now that my taxes are done. I'm looking to be around $8500 in forward dividends by May 1!!

13 comments:

  1. Awesome MDP! Looking forward to your Beast Mode April! Cheers!

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    1. Anonymous,

      Me too! I need to really get rolling again!

      MDP

      Delete
  2. MDP -

    Solid update on the lending club front. I, too, have been more than quiet on the dividend stock investing front and I don't like it! haha, not too many opps. out there that are "must haves", frustrating. Thanks for sharing MDP, talk soon.

    -Lanny

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    Replies
    1. Lanny,

      Thanks man! As you know it's about income investing, but bargain hunting for solid assets as well.

      MDP

      Delete
  3. How is the default rate in LC? How about taxes? Is it easy to report this income? Is it as simple as 1099 INT?

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    1. dividendGeek,

      I really don't know honestly. I just give everything to my accountant! My best guess is the interest counts as interest income and the charges off loans are capital losses. Hope that helps!

      MDP

      Delete
  4. Thanks for the LC update. Always interested to see how others are investing their money and what kind of returns are possible with P2P lending. Not a bad return though. As you said, similar to a ute stock. Thanks for sharing.

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    Replies
    1. DivHut,

      You will never hear me complain about a 5% return. The safety of that 5% is what may be a problem in the future. That's why I have hundreds of loans to partially offset the default risk.

      MDP

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  5. Very nicely done, moving forward looks great. It won't be long now and you'll reach that 12k a year mark for dividend income. Very exciting goal.

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    Replies
    1. BHL,

      12k is a huge milestone...no doubt about it. It takes a lot of sacrifice, hard work, and discipline to get there.

      MDP

      Delete
  6. Thanks for sharing your results. Mine have been slightly higher so far, but I'm only 3 months in. I just added another $2,500 today. I'll have 100 more loans funded soon.

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    Replies
    1. IH,

      The returns definitely bounce around, but normally stay around 6%. I will probably add some more funds once my dividend income picks up a bit.

      MDP

      Delete
  7. Nice balance and decent return...certainly much better than a savings account. ;)

    Personally, I find Prosper to be better because their automation appears to find more notes that meet my criteria than Lending Club. Both are still great options to put some extra cash to work.

    Thanks for sharing. Best wishes! AFFJ

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