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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: maginvizIZ on April 07, 2020, 01:43:38 PM

Title: Prosper Lending: Time to phase out of peer-to-peer lending?
Post by: maginvizIZ on April 07, 2020, 01:43:38 PM

Hello everybody!  With this huge sale on stocks; I've taken a look at my investment options...

Prosper.com = annualized net return = 6.88% (4 years)

I've put $16.5k in... Today it shows $21,391.21

Last year I can tell I got 10%.

Anyway; would you stop reinvesting into notes to buy stocks?  I understand it would be costly to sell my notes; but I could opt to not reinvest and just transfer it to my fidelity roth account it'd take 3 years to slowly get out of my notes...? This amount is 5-10% of my overall portfolio.


What would you do? Is 6.88% too low?  Do I ride it out to see if I can continue to get these returns during this recession/wtf we are in?

Title: Re: Prosper Lending: Time to phase out of peer-to-peer lending?
Post by: RWD on April 07, 2020, 03:10:05 PM

6.88% is worse than the stock market over the last 4 years even with how terrible March was.

I lost thousands of dollars in Prosper in the last recession (~$3-4k on a $7k initial investment). I wouldn't recommend P2P lending when so many people are losing their jobs.