My Decaying Star .......

[Debt Free]

We all keep commenting on winding down for 3 / 5 years based on note terms.  However, as you're experiencing, I doubt they'll last that long overall.  Even with steady paying borrowers, I suspect that as their notes wind down that there will be the inclination to pay them off when it gets down to 3-6 months left.

[Larry321]

Andy,
Yes, you reoplied to me months ago, but I finally decided to wind down my LC investments and not reinvest. Instead I am slowly moving my money out of LC and into Fidelity funds.

I have changed my expectations for my LC investments from 9% to 7% to anything between 6-7%

I've mentioned it before, but I've been investing since 2009. On average, you will get 6-7% on a fully mature and diversified portfolio. Remember, LC is not very tax friendly...so earning 6-7% is not the same as selling a stock for long term capital gains (and filling taxes for LC is much more of a pain). Overall, earning the equiv. of 5-6% isn't worth it for me. I still have my Roth with LC, but I am winding down my personal account.

[SeattleSun]

.
[Original post that started this thread]
.
For totally personal reasons I have to unwind my 1200 active loan portfolio of all most all 3 year $100 dollar loans.

So far I have chosen to just let them run off.

At the end of this month (June 2016) I will have about $10,000 cash to withdrawal.  More than I would have guessed.

I am trying to get an idea of what this decay will look like going forward.

Anyone done this before or can see the future. 

Is there a better way to do this?   Suggestions welcome   

I have a filo account but don't want to sell a significant portfolio at a discount, just stubborn.
EDIT 3/26/18: this filo sell options was taken away from Prosper Investors and I never used it in this unwind, the unwind is just pure decay.

TIA

Its a Prosper account but that shouldn't really matter in regards to this question.

Just an annual Update as of today 3/26/2018 in case anyone cares.

I started this account unwind 21 months ago in June 2016 and am now down to 340 notes with a value of $11,555.

Currently the "long pole" appropriately is the last 3 year note I bought on June 9th, 2016 right before I decided to shut the account down.  So if that note stays active until the last month I will have a closed account in June 2019, exactly 3 years from the start of the unwind. 

I had bought a few 5 year notes in 2013 and three are still active and very profitable that will close in August of 2018. 

I withdrew a total of $43,000 in cash in 2017 in three separate unequal withdrawals (April/August/December). 

$3,800 cash/month in 2017 but it's far from linear as you can suspect.  The first full month (July 2016) of the unwind, generated $7,800 cash.

SeattleSun

[Rob L]

Good to hear from you again.
Here's a chart of my unwind after completion of all folio selling and discontinuation of all note purchases.
Looks similar to your experience and decaying each month as you said.
All the returned cash has been transferred out of LC and has found a new home.

My biggest problem is that I resumed purchases of D&E notes 9/16 thru 1/17. That added 7 months to my unwind.
I think I have 18-24 months to go, with some folio cleanup selling at the end. Time will tell.