Yeah, I have had a net loss over the last 9 months. All my account is doing is eroding all the "gains" booked from the first couple years.
I partially blame the early payoffs. About 40% of my notes have paid off early, depriving me of the interest I expected to earn over the loans' lifetimes from these good borrowers. In many cases, those borrowers paid off after the 12-month mark, meaning that Lending Club also charged me a 1% fee on my own outstanding principal.
Is Lending Club giving the good borrowers a 2nd loan and are a significant percentage of these borrowers using it to pay off their first ones? I believe they are. Thank you Lending Club for sticking me as the investor in the first loans with the resulting losses.
I'm in the same boat- made the decision today to wind down my LC Taxable account and move it to Fundrise. A couple of things led to this decision:
1. Lending Robot revised their estimates on my account and both accounts lost 2%
2. Seeing the posts here made me run my numbers for the year so far, each account has made only $1-2K for the year after all chargeoffs, losses, etc. (This was very eye opening...)
3. The small amount of money I current have in Fundrise has done nothing but grow at a rate of 8.25% each quarter. No losses, chargeoffs, nothing. Can't ignore that.
4. Once I figure out what needs to be done with my LC IRA account I'll start that process. I know from others it has to be well planned and thought out to avoid unnecessary costs. Going to dig up some of those threads on the forum and start seeing what others have done.
All in all very depressing.