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Topics - ggnoob1337

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Investors - LC / Thoughts for retirement savings (case study)
« on: July 30, 2014, 09:42:02 PM »
Last year was the first year I started investing (other than in a 401k, which was completely automated and I didn't know anything about investing at that time). I'm 27 and my wife is 25. My first investment account was a taxable Lending Club account. The idea of a steady, yet good, return sounded pretty awesome to me. I also started investing a bit in stocks/bonds at Betterment. Since last year I closed my taxable investment account at LC and have been contributing to Lending Club Roth IRA's for my wife and I, along with Roth IRA's at Betterment. We maxed out our Roth IRA's last year and will continue that trend as long as we can.

Instead of having both a Betterment and Lending Club Roth IRA, I'd like to choose one or the other. I've been leaning towards liquidating my LC account (I know you aren't supposed to sell notes in an IRA, but it lets me so I do anyhow) and moving it all to Betterment. Mainly because its easy to make changes, easy to withdraw if I ever needed my contributions in an emergency, and easy to rollover to another investment account (Vanguard?). I've also learned a lot about investing in stocks since I opened my first LC account, so they sound a lot more tempting now. I've learned I shouldn't care whether they go up or down now, as long as they do good near/in retirement (I really would want them to go down now so my money can buy more shares).

But at the same time, if we kept maxing our LC Roth's until retirement and earned 8-10%, that would be a really nice chunk of change. If we continued earning 8+% in retirement, we could live off of our LC Roth's interest alone.

In a few years we'll have paid off a couple of loans and be able to start maxing out our 401k contributions. We are also maxing out an HSA and have some left each year to invest in a taxable investment account. On top of that, I'm contributing to a pension.

So in a few years if we were maxing out Roth IRA contributions with LC (both my wife and I), I figure that would be about 22% of our monthly contributions to all investment/retirement accounts. Then if I assume all of our investment accounts earn 8% until retirement, the LC Roth's would be about 24% of our overall portfolio. I know it's suggested that we don't invest over 10%, but I'm fine with up to 30%.

So I'm looking for help to convince me one way or the other...

Close our LC Roth's and move to Betterment (or Vanguard)
Close our Betterment Roth's and move to LC
Or a mixture of the two and have my wife do Betterment while I do Lending Club (would put us closer to 10% of our overall investments in LC)

Keep in mind that our LC Roth's are not above the $10,000 needed to avoid the annual fee. Lending Club said as long as they are $5,000 on the 1st anniversary and $10,000 on the 2nd anniversary, we won't pay any fees. I'm on track to hit $10,000 by the 2nd anniversary for both accounts and they are both currently over $5,000.

My main concerns with LC are:

It's not liquid should I decide to rollover down the road (easier to sell notes now while my account is smaller)
It's new and we aren't sure where it's headed in the future
If defaults go up during a recession, it won't rebound like stocks would after a recession
The Roth IRA with LC is a pain in the butt to manage if I need to make changes (why can't I just do everything online?)

Any advice on what I should do?

Since our Net Worth is still low, does it make sense to save up in stocks/bonds for a while and eventually stick to the 10% rule with LC?

If I moved the Roth's out of LC, then I would probably open a taxable LC account again eventually, even though I know taxes are horrible. It's just so much easier to use a taxable account because I'm free to sell notes and transfer funds as I choose.

Investors - LC / Lending Club Launches Business Loans
« on: March 20, 2014, 10:44:30 AM »
For those of you who haven't seen this yet:

Can all investors invest in these loans or will they be available to accredited investors only?

Interest Radar / Anybody use IR to auto invest and not just for Folio?
« on: February 11, 2014, 11:01:16 AM »
I've been using IR to auto invest for maybe 5 months now. I'm investing only in C-G IR01 400+ loans with a few other filters to tweak my estimated returns. I've stuck with the IR01 400+ loans because no matter what filter I set up on IR, nothing seems to compare to the IR01 400+ filters.

Anybody else been doing this for a while? What are your thoughts?

My only concern is that IR seems slow to invest so I don't get my idle cash invested as fast as I want to. Also concerned sometimes that I'm getting the leftover 400+ notes because the best ones are being picked up by people who auto invest on faster websites (or even manually).

Investing - General (not P2P) / BTC / LTC Mining
« on: February 10, 2014, 02:01:22 PM »
Anyone else here mine for Bitcoin (BTC) or Litecoin (LTC)?

A friend of mine has been mining BTC for a couple of years now. I never really looked into it or thought about doing it myself until last November. At that time, LTC prices went from about $4 a piece to up to $50 a piece. After talking to my friend and realizing that I could mine LTC with the video card in my computer, I decided to hop on board. Once I got my one video card mining and realizing it wasn't that hard to do, I bought several more computers. There's tons of different coins out there that can be mined. I'm currently mining Dogecoin. It seems to have started as a joke but it earns me almost twice as much as mining Litecoin and the price even jumped again about 20% overnight. To cash it out, I trade my Dogecoin for Bitcoin, then sell the Bitcoin for USD and transfer to my bank.

I now have 4 computers mining with a total of 7 video cards. All 7 video cards are new (I sold my old, slower one for one with better mining performance). One computer is new last year but I upgraded the power supply in that to support 2 new video cards. One computer is old but can run the new video card with the support of the power supply I replaced in my other computer. The 2 other computers are brand new built just for mining. Most of this equipment was bought back in late November and early December. My latest computer was just received and go it up and running last Friday.

I spent around $2,300 on all of the new equipment. So far I've made $1,089. Then after getting back some mail-in-rebates on the equipment, I'm still about $1,035 from breaking even (not counting electric costs). I'm hoping that I'll break even in less than 2 months. I'm currently making around $25 a day. The money I'm counting for what I've made is money that has been transferred into my bank account. Because I'm still basically paying off the equipment, I'm cashing out my coins daily and transferring them to my bank. That way I don't have the risk of holding on for too long and having prices go down. I also am reducing my potential earnings compared to if I was holding coins at lower costs and selling when they go up.

Last month I got my first electric bill after a full month of mining and it was about $75 more than my bill last January, but it was also colder this year than a year ago so all of that extra cost may not be from the computers.

I don't think I'll be buying any more equipment. I don't have a basement so I don't have a good place to put everything! If I did, I'd be building single computers that support 5-6 video cards, not just 2. But with my setup I need to worry about noise and heat. Plus, it can't bother my wife or she won't be happy!

As more people mine and the mining power increases, the difficulty of mining goes up, which reduces the amount of coins you earn. Unless prices of coins go up, this means that you'll make less money. It will be interesting to see how my setup does over the next year. At the moment prices have been good, but I'm assuming I'll eventually make less and less until I decide to sell my equipment and be done.

So there's my mining story. Anybody else doing this?

Introductions / Introduction
« on: January 02, 2014, 01:53:18 PM »
Hello everyone. My name is Logan. I'm 26 and live with my wife in a small town near Loveland, CO. I'm a Network Engineer at a local school district and she is a hair stylist. Prior to working in IT, I was an Infantryman in the Wisconsin Army National Guard and had 1 deployment overseas for Operation Iraqi Freedom.

I just got into investing early 2013 and after doing all the research I decided to open up a taxable Lending Club account in April. After "playing" with that for a few months, I opened up a Roth IRA for myself and my wife. I'm now contributing to all 3 accounts each month (enough to max the Roth's and whatever I can each month to the taxable).

I'm really enjoying the P2P lending. I calculated my returns (XIRR) for each account at the end of the year and I am at 9.61% for my taxable, 11.55% for my Roth, and 11.36% for my wife's Roth. The XIRR for each account is continuing to go up as time goes on (because the accounts are rather new and XIRR is based on how much you've earned since the money was deposited). I'm going to keep recording the XIRR every quarter and I can't wait to watch my progress. My goal is of course to keep the XIRR as high as possible, but I'll be very pleased if every account stays over 12% once loans get charged off.

I currently use Interest Radar to auto invest all 3 accounts.

I look forward to being an active member of this board and learning as much as I can from those of you who have been doing this for a while!


I have 3 Lending Club accounts....a normal account, a Roth IRA for myself, and a Roth IRA for my wife. If all 3 accounts are managed with IR and I use the same filters for each account, will IR invest in the same loan with different accounts? Or will each note be unique between all 3 accounts?

Sorry if this has already been asked, I did a quick search and didn't see anything.

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