Author Topic: Experiences with "Build a Portfolio" automated tool?  (Read 2661 times)

.jacob

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Experiences with "Build a Portfolio" automated tool?
« on: December 29, 2012, 11:47:53 PM »
Hello,

I've become frustrated with how long it's taken to become fully invested given my filtering and am considering testing out the automated portfolio builder tool. Has anyone used it?  Was the projected return accurate?  Please share your experiences with this feature.

Cheers!

brycemason

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Re: Experiences with "Build a Portfolio" automated tool?
« Reply #1 on: December 30, 2012, 12:47:46 AM »
That's a major downside of a filter strategy. Either come up with a 2nd or 3rd filter that yields equivalent returns and invest in each, or find a new strategy. I wouldn't use the automated investment tool because there's little control.


DanB

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Re: Experiences with "Build a Portfolio" automated tool?
« Reply #2 on: December 30, 2012, 05:12:09 AM »
I don't care for the auto invest tool either. I'm up to 4 different filters for 3 yr. notes & 2 for 5 yr. notes. Some days I need use only one of them, other days 3 or 4.

faeriering

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Re: Experiences with "Build a Portfolio" automated tool?
« Reply #3 on: December 30, 2012, 12:13:18 PM »
there are tools out there to make filtering and investing easier.  I really like the excel spreadsheet that Peter made for those folks that pay for the class he does.  It's makes investing way faster.

If you are looking at the auto invest tool, I would suggest you check out Peter's returns on his Prime account.  The autoinvest tool would do worse than that, because it doesn't get you diverisfied enough.

so you have a couple options all of them get you lower returns than spending the time to do the research and get filters that beat the average:
  • Prime, not great returns, but well diversified
  • Invest in lower risk loans, you don't have to be as picky
  • auto invest tool

When I get anxious because my money is hanging out there not working, I tend to start looking through the 780+ credit scores notes (there's a lot of them).  This way my money is getting to work, and I'm not taking a chance on loans that don't meet my criteria.

mo

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Re: Experiences with "Build a Portfolio" automated tool?
« Reply #4 on: December 30, 2012, 02:52:22 PM »
I took a look at the "auto invest" tool when I first started but choose not to use it.  My main concern was that it is only looking at the loans currently listed and if I was trying to put a larger chunk of money to work it would allocate more than $25 to a loan.  Since it looks like the one sure fire way to loose money with LC is to invest in too few loans I decided not to use it.

I agree with the others that making multiple filters or investing extra cash in Grade A high FICO loans initially to put it to work and then move it into more carefully selected higher yield loans over time is the way to go.