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Messages - Debt Free

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Sure the last dollar doesn't come out until 5 years are up, but most of the money comes out much sooner.

Which brings up another question I've pondered.  I have multiple accounts with LC including two IRA's.  Regardless if it's an IRA or taxable account, let's say you unwind the entire account cashing it out and then closing the account.  What happens if LC collects on charged off accounts?  You've zero'd your account out and it's closed.  Some of your charged off notes have been collected on.  What would LC do with your share of the collection?

... Whoops, I just realized I hijacked a Prosper thread.  Sorry. ...

Well, theoretically it will take 3-5 years to unwind the account.  First RMD is most likely the decedent's estate.  No charge for RMD ACH withdrawals / distributions.  (Oops!  Forgot this was referring to Prosper.)  Big unanswered question is what happens when balance drops below $10,000.  Guessing $100 annual fee will kick in.

Between this issue and declining returns, I am among those looking to unwind / move now rather than later.  Just opened my first account (taxable) at U-Haul Investors Club.  No IRA fees there, minimums, or withdrawal fees.  Smaller returns, but no real concern about charge offs.

Hopefully your notes are not your only investment.  If they are not, then an option could be to allocate the entire portfolio to an individual, and then other assets to other heirs.  Example:  Your house valued at $200,000, equities/MF IRA#1 $300,000, Prosper IRA#2 $100,000, property $70,000, cash $30,000.  Number of heirs = 4.  Total value = $700,000.

Sale of house and property gives you $300,000 in cash, IRA#1 $300,000, IRA#2 $100,000

Heir #1 receives $75,000 portion of IRA#1  +  IRA#2 = $175,000
Heirs #2-4 receive $75,000 portion of IRA#1  +  $100,000 cash = $175,000 each

Heir #1 can then manage the notes account from then on.

Off Topic / Re: IRA contribution from Tax Return
« on: February 23, 2017, 04:42:59 PM »
As long as your broker receives your contribution before your tax deadline, you're fine.

General Prosper Discussion / Re: Prosper CFO?
« on: February 14, 2017, 12:40:03 PM »
His LinkedIn still lists him as Deputy CFO at Annaly Capital.

Investors - P / Re: Serious concerns with Prosper (investor)
« on: February 10, 2017, 10:04:13 PM »
May be LC taking market share away.  Big dog on the block.

Investors - P / Re: Strange e-mail regarding Prosper Audit - Virus?
« on: February 03, 2017, 10:58:02 PM »
And contact Prosper.

Last couple years, yes.  I'm still working on my business taxes and haven't made it to the personal side yet.

Got my notices 1/26/17.

My brother has four kids, all under 18. As a good uncle, I want to ensure their financial lives get started on the right foot.

My wife and I are in our late 40's with a 7 year old and 3 year old.  We are debt free aside from our mortgage.  We are of the same mind of wanting our kids to learn financial responsibility at an early age.  But we're taking a slightly different approach.  Any cash they receive, we've been investing in LC.  Our state's 529 plan is so defunct that the state stopped allowing new accounts.  Regardless, I prefer self-management in equities rather than mutual funds.  Therefore, I opened Coverdell ESA's for college supplemented by additional LC accounts (playing the role of bonds).

I just started our 7 year old on an allowance.  As part of that, we are teaching her to use a portion of that for charitable giving, a portion to long term savings / investments / retirement, a portion to short term savings, and the remainder to day-to-day spending.  Goal of course is for them to learn to live debt free and not fall into the credit card trap.  There will be an inheritance for them, but better yet, teaching them to manage their finances at an early age I think is a FAR better gift.

Investing - General (not P2P) / Re: Penny Stock help!
« on: January 21, 2017, 03:12:35 PM »
Trimming profits never hurt anybody, especially a 67% gain.  But you do want to consider any tax implications.

Investors - LC / Re: Deadbeats
« on: January 13, 2017, 04:31:32 AM »
Partner up with my startup... and I'm in.

Investors - LC / Re: Why are my returns so low?
« on: January 06, 2017, 12:34:14 AM »
One factor is you have adjust for late payments turned on.  With mine turned on, I'm running 7.82%, weighted average rate 13.04%, at 24 months.  So not that far off.  Would need more detailed info on your portfolio to be more helpful.

General P2P Lending Discussion / Re: P2P Lending Options
« on: December 29, 2016, 02:02:25 PM »
Better than LC or Prosper.  Considering it's backed by physical assets and debt holders are paid before stockholders, I think pretty good.  Maybe not 100%, but part of something is better than all of nothing.

Another investment I've been looking at that I think is becoming more non-accredited friendly is SeedInvest.  A lot more risk however.

General P2P Lending Discussion / Re: P2P Lending Options
« on: December 28, 2016, 06:38:17 PM »
I inadvertently discovered (I haven't joined as of yet) that has been discussed previously on this forum.  Try searching for it, or review the site.

My main interest is in the fact that they accept Coverdell ESA accounts for my kids' college fund.  However, U-Haul is less liquid because you have to hold the notes all the way to maturity.  There is no secondary market yet.

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