1

**Investors - P / Expected Future Annualized Return **

« **on:**July 28, 2014, 01:57:03 PM »

I am trying to estimate my expected annualized return over the life of my Prosper account. All my cash proceeds are automatically reinvested into new loans and I plan to continue this over the next 5 years. Prosper currently shows my Seasoned Annualized Return at 12.59%, Average Note Age of 318 days (10.45 months), allocation is roughly equal A, B, C, D.

LendingClub provides a chart showing how ALL portfolio's overall returns decline as Average Age of Portfolio increases. When "Average Age of Portfolio" is 24 months, nearly all accounts end up with annualized returns of 6-8%.

Prosper doesn't provide any stats on historical long term expected returns.

Is my current 12.5% return doomed to 6-8% annualized over a 5 year period?

LendingClub provides a chart showing how ALL portfolio's overall returns decline as Average Age of Portfolio increases. When "Average Age of Portfolio" is 24 months, nearly all accounts end up with annualized returns of 6-8%.

Prosper doesn't provide any stats on historical long term expected returns.

Is my current 12.5% return doomed to 6-8% annualized over a 5 year period?