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Topics - graceful

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Investors - P / Closing down a Prosper IRA: issues, tips and traps
« on: March 13, 2017, 10:23:01 AM »
I planned to close my IRA Prosper accounts and had been transferring funds out to my Fidelity accounts everytime $10,000 in cash accrued. When the shut down of FolioN was announced. I fast-tracked my shutdown by selling everything on FolioN in the week remaining.

Each account was already down to about $10,000.00 when I launched the sales on FolioN.

The fees for annual maintenance were my initial target -- selling notes in a single calendar year and avoiding the Prosper annual fee once I got below the $10,000 minimum. But I discovered that the larger fees (by 3x) are the account closing fees at Equity Institutional. I arranged to pay these fees on a credit card, so the maximum tax-sheltered amount could rollover to my Fidelity IRA. You must set up the credit card payment before issuing the order to close the account.

Stray notes are a problem. Several notes went late in the week I was selling off, and then came current again, but too late to get sold. And a couple of late notes were in collection, which can take months to wind down. My shutdown started last October, and 5 months later is complete, sort of (see below). As soon as the accounts went to zero, Equity Institutional took the last bit of cash from Prosper and then sent it to Fidelity.

HOWEVER, now both accounts are showing a balance again. There must be some bookkeeping lag at Prosper. In my case, my EI account is now closed, so I don't have a way to move these stray amounts out. Since these are IRA accounts, this might be a problem for the IRS. I'm going to contact Prosper and see what they suggest. A wait of an extra few months would have solved this, if I'd had any idea it was possible.

Prosper told me last December that they plan to have another way to sell notes, but don't yet have anything definite. 

Investors - P / massive number of loans charged off today
« on: October 09, 2015, 06:35:01 PM »
I just got a series of emails with pretty large charge offs for many loans.

The charge off amounts are larger than most I've ever experienced, and it is a massive dump in number.

Anyone else seeing something similar?

Investors - P / Principal Adjustment
« on: July 29, 2014, 05:06:42 PM »
There was one other query about this on an investor's statement in Dec of 2012, with no answer. This month, every account has a deduction for Principal Adjustment.

Anyone know what this is for?

I'm liquidating my Prosper IRAs and since I can't sell the notes on Folio, I let cash build up and then withdraw in $10k amounts.

Equity Institutional posted their fees (might be new fees, I didn't pay much attention because Prosper was covering the fees.) and am thinking some of you may have suggestions about how best to manage a withdrawal program to minimize fees.

Minimum annual fee is $250.00 or .0015 of the total if over $170k.
Each withdrawal costs $75.00 (partial termination fee).
There is also an account termination fee of $200.00.

I can't do anything about the annual fee. Just have to deal with it if Prosper stops paying it. So I think the only thing I can affect is the withdrawal fee. It takes about 3 months for $10,000.00 to accumulate in cash, and I've been withdrawing at that point. The actual transfer takes about 70 days.

I expect to make no more than 12% in 2014 on the rest of my portfolio, and my loans at Prosper are all high yield (over 19%), so it's not a disaster that I'm forced to let them ride and pay me interest. (The disaster is that I had such a fabulous run-up in 2013, and couldn't move this money to the stock market for that rally, and it gives me heartburn to leave cash idle for 4-5 months with no yield at all.)

Can I do better?

I spent about 45 days getting the first withdrawal transferred from Prosper to Equity Institutional and out to Fidelity. Now I'm at 60 days for the second withdrawal and no sign of when my funds will be moved to Fidelity.

Is anyone else having trouble moving cash through Equity Institutional? I get email correspondence every once in awhile, but nothing happens.


Investors - P / Prosper IRA: Equity Institutional problems
« on: June 12, 2013, 09:29:54 PM »
Is any one having trouble with their Prosper IRA?

I transferred funds from Prosper back to Equity Institutional/Sterling Trust but can't access the funds. They seem to be in limbo. There are also fees due, which I thought Prosper promised to pay. The outstanding fees may be why I can't get to the funds, but I haven't been lucky in reaching them.

Anyone else have some experience to share?


General P2P Lending Discussion / taxes: FolioN sends a 1099B?
« on: February 13, 2013, 12:06:00 AM »
I'm wondering if others can confirm whether we should expect a 1099 B from Folio.

None came last year, but I did just a handful of trades the previous year.

On their website, Folio says they send statements out at the end of February each year. Since I hadn't received one last year, I called to confirm and was told that they send the data to Prosper for delivery to us but that sounds screwy to me. No note sales are in my consolidated statement from Prosper.

Who has longer history with Folio and can help me decide whether to finish my tax return or wait for another form (or maybe two or three).


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