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Topics - lascott

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Expected value in 12 months

Helping my son exit from LC with his ROTH IRA and get it to a Vanguard ROTH IRA.  Wow, it has taken 2.5 months dealing with LC and STRATA. Many emails and confusing questions about different forms or them missing ... and me forwarding the emails with the forms already sent and previously acknowledged.  It looked like a pain to get a direct custodian to custodian transfer to get to Vanguard with a Master Notary Signature (vs standard one). With Fidelity I can just go to the branch offices.  THUS we had them send a check which we will deposit into a Chase savings acct that is already set up to my son's Vanguard account.

Anyway, my quick question is the $50 fee that STRATA charges is just lost ROTH IRA money. Meaning STRATAs 1099-R that they will send my son will only be the the total distribution check and not the total+$50 fee?   It seems like one would have the option of paying the $50 fee with a credit card or something else so you could keep that $50 in the ROTH IRA.

__________ ______________

Apr 2020 tax prep for 2019 tax season from a Turbo Tax perspective (I think):

My son has sold all his LC notes.  All the money was transferred to STRATA with the transfer transactions matching between LC and STRATA.

However, his STRATA account shows over $40 for a balance in 'Unsecured Notes balance' still.  Has anyone else seen that?

We emailed both STRATA and LC about it but have not heard back.

Investors - LC / Tue 02/12/19 payments about 3 times higher than normal
« on: February 15, 2019, 10:56:18 PM »
On Tue 02/12/19 payments in both my taxable and ROTH IRA were about 3 times higher than normal.  Not obvious why on that Tue.

Anyone else notice this?

Investors - LC / 2018 Tax Guide for Retail Investors - 1F and 1G
« on: February 04, 2019, 12:40:59 PM »
FYI, I did a comparison of 2017 and 2018 Tax Guide for Retail Investors and saw they made changes for 1F and 1G. Their example of how to transfer their form to your tax form didn't include it but it would be straight forward.  Some other minor text changed related to 'repurchased' notes.  See below. - If this link doesn't work just compare your 2017 and 2018 guides yourself at



Aside: Has anyone downloaded their LC data into TurboTax yet? I'm planning on working on my taxes soon and was curious. Timing has been a little odd in the past years as I recall.

Below prompted me to share a spreadsheet (Do a File/Copy of it!) and technique I came up with a while back to look at note payment activity. 
I used the length of all concatenated IDs to determine a small formula to extract out the Loan ID,  Order ID, Note ID. This seems to work for the various lenghts (24 to 27).
I was prompted to share this based on my interaction with Fred93 below.

All the payments for a day show up as a single total, and when you click on the total, a window pops up showing the note by note detail.  For me, that popup window is larger than my screen, and it has NO SCROLL BAR, and no way to download, so there's no way to ever see the numbers.
FYI, I can use the mouse scroll wheel to move down but I can not use the page scroll bar or that popup dialog box goes away. Crazy they design this stuff with one person or something.
UPDATE: You can also just click your mouse in that dialog box and then use up/down arrow keys or page up/down keys.
Visual separator

Here are some directions to populating a Google spreadsheet I came up with to peek at note payments and then take the hyperlink to the Lending Club page for a given note. AFAIK you can only look at these if you own the note so experiment (follow LC link in spreadsheet) with your own.

1) Got to Activity page:
2) Click on Investor Fee Amount or PAYMENT Amount to get a popup dialogue.  Either one brings up the same info AFAIK. Often the PAYMENT one shows up many minutes after the Investor Fees one.
3) Highlight all the IDs and values
4a) Paste into Windows notepad or equivalent
4b) Change all $ to <tab>$ --- this will make pasting in a spreadsheet go to multiple columns (tabbed data pasted)
5) You can delete range 3A:G beforehand.  (3A:G without a number following G means as many rows as there is per G-sheet syntax).
6)  Then cut-n-paste those lines into a spreadsheet at 3A. 
7a) Highlight all cells. Click the area to the left of A and above 1. Not sure of the official name of this 'select all cells' area.
7b) Use menu option Data, then Sort Range.  Pick Data has header row. 
7c) Sort by column named 'COLLECTION FEE (S1Z)' 1st and select Z to A (S1Z) *AND*
7d) Sort by column named 'PRINCIPAL (S2Z)' 2nd and select Z to A (S2Z).
8.) Click on the URL for any note you are interested in reviewing (but make sure you are logged into your LC account).

Shared sheet:
Shared Excel: see attachment

Example below. This is just for the heck of it so see what some transactions are doing (pay off, pay late, collections, etc). 

I built a URL in the Google sheet that I can then go look at that loan. 

Obviously, I added the columns on the right (following '.' column) to break the IDs up so I could build the URL. Cut-n-pasting scrunched them all together :(  Automatic 'Conditional Formatting' also made numbers stand out.

Related to 2 above:

Final output: (update -- Note that N5 should be a value of 8. I added a forumula to that column but it didn't affect anything else. 1:03am CTS)

I'm looking at investing into a non-public company so there few regulations and limited forced scrutiny like available audits (for lack of a better way of putting it).  I'm new to this and learning. Most of my investments are safer :)

  • If registered in Delaware, look up the Corp form and any LLCs created
  • Whatever state they are in look up the Secretary of State (SOS) for their Foreign Corp and LLC forms
  • Compare consistency and time diffs between the above two
  • Look at LinkedIn for employees and see their background
  • Looks at EDGAR or a similar site for the SEC filings (Form D, Reg D, Reg Dex -- see descript below) -- aggregate site ( Actual:
  • Review "private placement memorandum" disclosing the company business and potential negatives associated with the company and the value of the investment. (
  • Look at Company's officers and directors relationships to other companies. Great graphics here:
  • Set up Google Alerts on the company and potentially officers
  • Look at / subscribe / follow their social media, newsletters, etc

Tips? Other things to look at and consider? How long in business? The longterm potential of their offerings?

Example of look up for Foreign regs -- Colorado Secretary of State -- Business Database Search
(Statement of Foreign Entity Authority -- Form of entity: Foreign Corporation -- Jurisdiction: Delaware)
SEC Form D, also known as Reg Dex or Reg D, is required for companies and funds offering and selling securities without registration under the Securities Act of 1933 in reliance on an exemption provided in Regulation D or Section 4(a)(5). The form must be filed within 15 days after the first sale of securities.

SEC Form D comprises brief information about the company, its executive officers, and stock promoters, the amount and value of the securities sold and the date of first sale. The form is intended to prevent fraud in the sale of the offered securities by requiring significant information on those securities be made easily accessible to investors.

A number of SEC Form D filings are made by startups raising capital through venture capital and angel investors as well as certain pooled investment funds.

Form D is filed in XML format and must be filed using the SEC’s EDGAR (Electronic Data Gathering, Analysis, and Retrieval) system. Once the Form D submission has been accepted, it can be accessed by the general public via

Investors - LC / Available now: 2017 - 1099 Consolidated Package
« on: January 29, 2018, 12:25:37 AM »
This is available now: 2017 - 1099 Consolidated Package

LendingRobot / NSR Invest / Lending Robot email: The First 90 Days
« on: October 25, 2017, 12:18:52 PM »
Perhaps they liked the LendingRobot name vs NSR Invest as the email is 'Summer from LendingRobot'.  As well Summer is now titled as the president vs 'Director of Investor Success' via

The bolded point below is perfectly unclear to me. Perhaps they did it on purpose to start a question/answer/query session.  It at first sounds like they wouldn't add NSR analytics to LR but then they talk about the direction away from self manged to fully managed. Then the last sentence would indicate they may not want to do the existing LR self managed (rules) on LendingRobot or they are just referring to not wanting to do NSR analytics on LR.

from: Summer from LendingRobot <>
Dear <snip>,

November 1, 2017, marks 90 days since NSR Invest acquired LendingRobot and we want to share our progress with you.  The first 90 days consisted of three phases:

Phase one: basic housekeeping
Phase two: technological analysis
Phase three: implementation

In phase one, we focused on streamlining LendingRobot’s accounting, operational, and administrative processes.  I am happy to report we made great strides here and are now able to focus our efforts on improving the technology and investor experience.

Phase two kicked off a detailed analysis of the current calculation methods, algorithms, and logic behind the LendingRobot and NSR Invest platforms.  Our goal is to understand which methods reign supreme and employ only those on our platforms.  We are finalizing this review and expect to start implementing changes within the next 6 weeks.

Phase three is the culmination of phases one and two.  We have started implementation of key features for the LendingRobot Series, including the ability to make partial withdrawals.  We are now testing features for our Classic investors and will share those details in the coming weeks.

We’ve had great feedback from our investors during the first 90 days and I’d like to share the two most frequently asked questions:

1. Will the NSR and LendingRobot platforms be combined?
Yes. We will combine both platforms soon, but our first objective is quality control. We are currently wrapping up a thorough comparison of each system so we can leverage the best features from each in the upcoming consolidation.

2. Will NSR analytics be available on the LendingRobot platform?
Not Likely.  We are conducting a thorough market analysis to better understand the demand for the NSR analytics features.  Our tools served an important service in the past half-decade during the industry’s development, but our purpose has changed materially as investors have switched to a fully-managed solution.  We are not convinced that the resources required to maintain these features on the LendingRobot platform are justified.

I’d love to hear your thoughts!  Please take a moment to reply to this email and help me better understand the things you love and opportunities for improvement on the LendingRobot platform.  YOU are the key to our success.  I look forward to hearing from you!


Summer Tucker

Kid's LC account email received this LC promotional today:
Subject: How LendingClub Notes May Help You Generate Long-Term Wealth

If you're working towards long-term financial goals—like saving for a child's college education, funding your retirement, or passing wealth between generations—LendingClub Notes should be on your radar.
While many investors turn to stocks due to their historical ability to generate healthy returns, stocks aren't the only game in town. In fact, LendingClub Notes may offer solid returns and have delivered historical returns between 4-6%(1), making them a potential tool to build wealth for the long-term.
Find out how LendingClub Notes may fit into your overall investment strategy and help you take strides toward your long-term investment objectives in our latest blog post.
Read More

The (1) footnote only refers to A-C notes:
1. 4.86%-6.69% average historical returns for loan grades A through C as of June 30, 2017. To be included in the historical returns ("Historical Returns") calculation, a Note must have been originated prior to December 31, 2015. Historical Returns are LendingClub's adjusted net annualized returns ("Adjusted NAR") for Notes with Grades A through C. Adjusted NAR is calculated using the formula described here. Historical returns are based on actual borrower payments received each month, net of fees, actual charge offs, recoveries, and estimated future losses. To estimate future losses, we apply a charge-off rate estimate to the outstanding principal of any loans that are past-due but not charged off. The charge-off rate estimate is based on historical charge-off rates by loan status over a 9-month period. Historical performance is not a guarantee of future results. LendingClub Notes are not insured or guaranteed and investors may have negative returns. Individual portfolio results may be impacted by, among other things, the size and diversity of the portfolio, the exposure to any single Note, borrower or group of Notes or borrowers, as well as macroeconomic conditions. Notes are offered by prospectus filed with the SEC and investors should review the risks and uncertainties described in the prospectus prior to investing in the Notes.

Investors - LC / LC stop or limit fractional notes the last few days
« on: June 30, 2017, 09:12:09 AM »
What in the world is going on in the fractional market? I'm I living in an alternate universe or have all the notes (and especially A, B, C) dried up?
I've been doing modest buying in my taxable account for a few months and see them daily but just a couple days ago I just turned back on buying for my IRA. Yikes.

Look at PeerCube Lending Club Loan Tracker twitter:  -- 28th was last day the automated tweet showed up

Or latest in LendingRobot showing none this morning:

Or BlueVestment graph for the bumps at drop times:

I'll also call when they open on PT time:
Call Toll free: (888) 596-3159
7:00am – 5:00pm PT, Mon–Fri

I called but they really didn't know anything about the flow of fractional vs whole and could only look to see what is currently sitting out there.
They at least could see my accounts and understand my building cash concern.


Annual and monthly return data have trended down.  2016 saw a nearly 300 basis point decrease in total return from 2015 (3.95% vs. 6.93%), and 2015 was lower than 2014 (6.93% vs. 8.71%) by nearly 180 basis points. So over a two-year period, we have seen nearly 480 basis points of return compression for investors in these loans; that is a meaningful, negative change.  This downward trend has continued into the first quarter of 2017. 

Title: Renaud Laplanche, Ousted at Lending Club, Returns as Rival to His Old Firm

To set Upgrade apart from Lending Club and other competitors, the company, previously referred to in filings as Credify, will offer, among other features, free credit monitoring tools and financial education to keep customers engaged even if their initial loan applications are rejected.
Unlike Lending Club, Upgrade will not sell its loans to small-time investors. Mr. Laplanche is looking only to big institutional money managers, and he said that he already had four large investors on board.

FYI, My "2016 Consolidated 1099 Package" is available 28-Jan-2016 1:30am CST

Figured a lot of folks were waiting on this to work on their taxes. 

Update: Just tried in TurboTax but it doesn't think they are available yet. Just typing in the totals for the 1099-OID and 1099-B to see how it calc's out then will import in a few days.


Recap of Recent Performance Trends with Lending Club and Prosper – Part #2
In the second post in this series we look at the performance of loans at Lending Club and Prosper.




For a long time investors have enjoyed healthy returns by investing in loans both on Lending Club and Prosper. Certainly part of the degradation in loan performance can be attributed to the platforms’ expanded underwriting and it’s clear now that interest rates were lowered too much. But there is also an important lesson to be learned. Many investors focused on the highest risk grades which historically had produced higher returns. Now that returns have come down, investors are realizing the risk in investing in the higher risk borrowers. I don’t think some investors carefully considered their personal risk tolerance before investing, they simply sought after the highest returns.

It’s hard to draw any conclusions on what will happen with the newest vintages as the latest rate changes went into affect on Lending Club in October, 2016 but a lot has changed since the loans in 2015 were originated. On a positive note, unemployment, which is highly correlated with performance of unsecured lending continues to remain low. We will carefully be looking at Q3 and Q4 2016 vintages once new data is available in February.

If you are an investor who experienced lower returns as of late, now is a great time to reconsider your investment approach whether that be continuing to invest as is, modifying the loan grades you invest in or rethinking your allocation to p2p lending within your entire portfolio. Returns in this asset class, as with others are likely to rise and fall over time and this is just one example of it.

Update January 18, 2017: Lending Club released an 8-K discussing recent loan performance. According to the release:

We have seen early signs of stabilization in delinquency rates across the existing loan portfolio following changes made several times in 2016, and implemented additional changes on January 11, 2017 to tighten the thresholds on borrower leverage on unique combinations of risk factors such as number of recent installments loans, revolving utilization, and higher risk scores on our proprietary scorecard.
The document goes on to comment on the economic backdrop, borrower performance, interest rates, and other factors such as prepayment rates and diversification. It is worth reading to learn Lending Club’s view on current trends. You can find the latest 8-K here. [ ]

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