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Messages - avid investor

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1
Investors - LC / Re: What's Your LC ROI?
« on: February 15, 2020, 11:06:10 AM »
Thanks for your reply.  Even though you don't know your actual ROI, do you still consider the platform a worthwhile investment given risks vs. returns?

I am also considering pulling out because of the less than liquid nature of the investments, having to wait 3 to 5 years for maturity.  I signed up for the aftermarket trading, but saw it as a way of "just losing less" by dumping poorly performing notes for a huge discount, which feels more like "cutting to the chase" and writing off a bad loan early.  After all, the only one wanting to buy your bad loans is someone who is getting them for a steep discount and has much less to lose on them.

I have heard all of the comments for years, how LC doesn't care about the individual investor market, the returns are poorer, and availability of notes poorer.  I have stayed with it because I am a software developer and developing the software to invest over their API was easy and frankly, fun.  Since I don't have to put any energy into perusing and investing in notes (as my software does that for me),  it has been easy to let things run on autopilot and not take more definitive action. 

Still hoping for more responses here, to help me make my decision.

Thanks to those that have posted.

2
Investors - LC / What's Your LC ROI?
« on: February 14, 2020, 10:57:41 AM »
I've been investing in LC notes since 2008.  I used to post on here a lot, but not in recent years. 
We've all seen the changes, downturn of ROI (mostly due to increase in write offs), paucity of notes to invest in, etc.

I'm at a crossroads, having fine-tuned my investments through the API to the most conservative based on my criteria, and seeing something of a rebound in my ROI.  On the other hand, I have over $11,000 in sideline cash since there are so few notes available.  It used to be an October through December problem, but here we are in February and there's still nothing to buy.  69 notes available this morning, all dogs.

I'd like to hear from my fellow investors on what they are seeing for ROI.  I can't trust LC's ROI % calculations.  Not when I look at my LC IRA accounts (which have had no cash added or subtracted for years).  That ROI is pretty simple to calculate.  How much has the account grown in 1 year?  That's the ROI % with no cash added or subtracted from the account.  That calculation never comes up to their number.

3
Investors - LC / Note Aging Algorithm
« on: January 23, 2018, 02:31:31 PM »
Does anybody have a reasonably good note aging algorithm that they want to share?  The "31 - 120" that LC provides is virtually meaningless as a predictor of near-term losses.  I'm not looking for 100% accuracy, but I realize that payments to date / months since origination is not a good way to go because borrowers might have been paid way ahead months back and yet have not paid in 3 months.  Similarly, a borrower that is on a payment plan to catch up might be harder to factor in.

4
Investors - LC / Re: Withdraw some funds from Lending Club IRA account
« on: August 10, 2017, 11:05:02 AM »
Other than customer satisfaction, future business, bad reviews/recommendations, etc.?

5
Investors - LC / Re: Withdraw some funds from Lending Club IRA account
« on: August 10, 2017, 08:08:14 AM »
I have done this multiple times, and the process is infuriating.  When sending IRA funds back to my Schwab IRA, I complete Schwab's form, and upload it to Schwab, as SDIRA has told me that they can't push the funds, Schwab has to pull them.  Fine.  Then I spend WEEKS waiting for the transfer to complete.  Even though I hound both sides of the transfer, they just point fingers at each other saying it is "their" fault for the delay.

Then, for the "privilege" of such poor service, I get a $50 fee from SDIRA for processing the disbursement.  Nice.

6
Investors - LC / Re: Email from Lending Club
« on: June 02, 2016, 09:59:36 AM »
I got it, too.  Could easily have been triggered by my changed behavior.  I have turned off all 5 of my daily auto-investing cron jobs, which invest in all 4 accounts.  Haven't invested for at least a week.

7
Investors - LC / Re: Lending Club New Product?
« on: April 15, 2016, 10:12:52 AM »
Why would they touch auto loans?  I am still seeing 2% on car loans.  How bad a risk would a debtor have to be before you would be able to get a decent return as an investor?  I don't think I would touch them.

8
Investors - LC / Re: Lawsuit Against LC
« on: March 29, 2016, 02:24:44 PM »
I understand anyone complaining about "predatory lending practices" when there are undisclosed or poorly disclosed features about a loan (fees, balloon payments, etc.), but even if a G-5 credit risk loan had a rate above a state-mandated usury limit, I have no sympathy.  LC does straight "rule of 78" loans with a well-disclosed APR up-front.  If you don't want to pay 25%, clean up your credit, or find someone willing to loan to you for less.  It's a pretty straightforward loan process and computation.

9

I have been trying to figure out how to do exactly that but I have a large portion of my retirement investments tied into my 401k which has pathetic offerings.  The only way I can think of to better invest the money is to quit my job so I can roll it into an IRA.

Well, maybe switch jobs?  I don't know how old you are or how much you have in retirement, but eventually, lack of control of your retirement may start to outweigh any concerns over a new job.  When you have a lot in it, return will be critical.

10
There's a lot of ultra conservative investors out there who think that "investing" means only stocks, bonds, mutual funds, and CD's.  My thinking switched when I saw how the markets were being manipulated by forces well outside my control.  I realized that I had more faith in the average American with a high credit score and "skin in the game" than I did in a billionaire CEO with a golden parachute.

Haven't had a cent in the market since last fall, and glad for that.  Guess that's why they call it "Motley Fool".

11
Investors - LC / Re: 7 year LC investor here, looking for other old timers
« on: February 11, 2016, 05:56:16 AM »
I have been with LC since 2009.  My wife and I have 4 accounts (including IRAs), and have a significant amount of our retirement in LC.  We don't use the Folio platform, although I enrolled, but I am getting closer to 9% ROI.  I basically have stopped putting new funds into LC, but reinvest 100% of what we have in these accounts.  This makes ROI even easier to compute with no "new money" or withdrawals to consider.

We do, however use the API, and like Fred, I hardly ever visually review any notes.  The API keeps us fully invested (typically about 3% sideline cash including pending notes), so that I don't have to make it a "part time job".   We simply view our balance year over year at month's end, and our software does that for us.

With the volatility in the market these days, I'll take 9% without having to be a day trader and pull my money out everyday.  THAT would be a part time job.

12
Investors - LC / Re: 2015 Tax Guide for retail investors changes (8949)
« on: January 31, 2016, 02:29:21 PM »
I have always posted these in detail, but it is getting a bit ridiculous in terms of effort.  My wife and I have significant after-tax accounts, now, and that means a lot of rows.

I remember a thread from last year regarding converting .csv to .txf files, and uploading into TurboTax.  After a Google search, I have tried several with no luck.  They don't like my LC data, even when formatting a .csv exactly as they want to see it, based on the LC .XLSX file.

Has anybody done this successfully, and if so, would you share the tool(s) and process used to produce a good .TXF file?

I mailed a hardcopy of mine in last year.

This post from March 2015 stated they were able to import the previous year. Post also mentions a 2500 limitiation FWIW. http://www.lendacademy.com/forum/index.php?topic=3081.msg28016#msg28016
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I used EasyTXF.com and imported it to desktop version of Turbotax last year. This year however, I'm just over Turbotax's 2500 transaction limit as I sold a lot of my small notes. So I looked around and see that Tax Act claims to accept PDF attachments for Schedule D. So perhaps just uploading LC's 1099 in PDF to Tax Act will be sufficient to e-file.

From this post TaxAct allows for electronic attachments. http://www.lendacademy.com/forum/index.php?topic=3163.msg28485#msg28485
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With this form, I was able to upload the "2014 Schedule of Charged off Notes" from my Tax statement 2014 provided by LC as an attachment as part of my e-filing.

Thanks.  Yeah, I tried Easytxf, but it did not like my .CSV, even though I followed their format to the letter.  I suspect that it didn't like the "SYMBOL" column, as it is obviously geared toward stocks/mutual funds, etc. 

13
Investors - LC / Re: 2015 Tax Guide for retail investors changes (8949)
« on: January 30, 2016, 09:07:02 AM »
I have always posted these in detail, but it is getting a bit ridiculous in terms of effort.  My wife and I have significant after-tax accounts, now, and that means a lot of rows.

I remember a thread from last year regarding converting .csv to .txf files, and uploading into TurboTax.  After a Google search, I have tried several with no luck.  They don't like my LC data, even when formatting a .csv exactly as they want to see it, based on the LC .XLSX file.

Has anybody done this successfully, and if so, would you share the tool(s) and process used to produce a good .TXF file?

Thanks in advance!

14
Investors - LC / Re: LC declining stock price: a signal?
« on: January 06, 2016, 09:06:26 AM »
Besides the recent FED increases in the interest rates and LC adjustment, is there any known reason why the stock price of LC has gone down a lot in the last month? Is the market thinking that the quality of the loans is going to worsen so we will have more non-performing loans? Any theories?
Have you noticed the market in general?  Unless you're looking at gun stocks, you're pretty much down.

15
Investors - LC / Re: Worst Month Yet
« on: December 04, 2015, 12:36:58 PM »
I wouldn't sweat it.  I have had poor months and great months (just coming off a great one, FYI). and there is a certain "luck of the draw" all of the time.  Keep in mind that I invest electronically through the API, so there are "no poor choices" made manually in my investments.  The software looks at the filters and model and makes the choices.  As a result, I can say that these things do occur as a part of the random selection, but let's face it.  Investing in LC notes is for the long haul.  Anybody that invests $1000 in hopes of having an extra $100 a year later and not reinvesting it would have to be crazy.  The real return is in compounding your returns.  Have a glass of holiday cheer and let it ride.  I've been in for 5 years now - very happy with my returns.

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