P2P Lending / NFT Lending Forum

Did you make a contribution for 2015?  If not, you have until April 18th to do so.  If you are 50 or older, the limit is $6,500.  Otherwise, I think it comes down to doing a transfer or waiting until next year.

I haven't done any Folio trades in about 6 months.  Combined NAR:  10.86%.  IRR:  10.34%.

I started investing in 2008 and in mostly A and B notes.  Now I only invest in loans that pay 12% interest or greater.  I'm not sure those old paid off loans are ever culled from my composition numbers.

https://forum.lendacademy.com/index.php?topic=3353.msg29988#msg88888888Quote"> from: Fred93 on August 09, 2015, 12:29:38 AM

I think LC made it as easy as can be for this last tax season.  The numbers were added up and ready to copy over to my tax forms.  Here is the last page of my long-term Folio transactions.  (I primarily sell IGP and late loans.)  If you think it is too complicated, you should lobby your Congressional representatives for tax reform.

SeanMCA, please don't be discouraged.  If you lump all the loan grades together, 5% is the current average default rate.  http://www.lendingmemo.com/lending-club-prosper-default-rates/" class="bbc_link" target="_blank">Here is a good article about it.  Also, if a loan is going to default, it is most likely going to do it within the first 8-10 months.  http://www.lendingmemo.com/lending-club-prosper-return-curve/" class="bbc_link" target="_blank">Read this.  So for the first loans you invested in, if they haven't defaulted already, the majority will remain current.  Yes, it would be nice if LC could predict who is going to default in the first few months of the loan and deny them, but I don't think that is entirely possible.

For a long while, I sold my IGP and late loans on Folio, but it was becoming very time consuming as my investment has grown.  I stopped back in February.  My return has managed to tick up a bit since then.  YMMV.

In the early years, LC provided little to no information about taxes, but now LC spells it out and adds it up for you.  If you want an IRA anyway, I'm pretty sure you'll have to create a new account with a different e-mail address and mail a check to the IRA custodian (a third-party that manages the IRA).  The $100 fee is waived if you invest $10k within a year of opening the account.

In Funding 67
Issued & Current 2,270
In Grace Period 3
Fully Paid 954   
Late 16 - 30 Days 1
Late 31 - 120 Days 8
Default 0
Charged Off 11
NAR 12.82%
Average Age of Portfolio: 23.1 mos

And, yes, I sell my IGP loans on FolioFN.  The late loans are bankruptcies that I can't list for sale any more.   https://forum.lendacademy.com/Smileys/default/cry.gif" alt=":'(" title="Cry" class="smiley" />

I'm no tax expert or math whiz, but I'll take a crack at it...

Where are you getting the 30% tax rate?  If your tax rate is that high, you likely don't qualify for an IRA.  Your effective tax rate is highly dependent on any other income and will be less than the tax bracket you might fall in.  That is because your income is taxed in tiers by the IRS.  In 2013, for single filers, the first $8,925 earned is taxed at 10%.  Income from $8,926 to $36,250 is taxed at 15%.  $36,251 to $87,850 is taxed at 25%.  And so on.  Let's say my adjusted gross income is $75k for the year.  Subtract the single standard deduction of $6,100 for a taxable income of $68,900. Looking at the tax tables, my tax is $13,160 making my effective tax rate less than 18%.  I'm not even going to get started on state taxes as I am in a different state.

Charge-offs = capital loss and are used to offset capital gains.  If there are no capital gains, then they are essentially subtracted from your income to give you your AGI.  Capital losses are not taxed.

Let's say I received a W-2 for $74k.  I add my $1500 OID interest income.  I fill out the Schedule D, with my $500 charge-off/capital loss.  That brings my AGI to $75k.  $1000 net gain x 18% tax rate = $180.  So after taxes, I made $820.  Divide that into $10k, and my after-tax return is 8.2%.

https://forum.lendacademy.com/index.php?topic=1840.msg15261#msg15261">Quote"> from: Inflationhawk on December 06, 2013, 07:33:14 AM

My mature portfolio...

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This forum has a handy ignore feature here:  http://www.lendacademy.com/forum/index.php?action=profile;area=lists;sa=ignore" class="bbc_link" target="_blank">http://www.lendacademy.com/forum/index.php?action=profile;area=lists;sa=ignore 
It makes this forum much more informative and productive for me, and it's best not to feed the trolls and their already over-inflated egos.

Click on "Order History", look for something in the "Expired" column, and click on the order number to see the note that cancelled from that order.  You are wasting your time though as LC doesn't tell you the exact reason the note was cancelled, and there are a multitude of reasons.

If you are happy with the average return and default rate and short on time, then there is nothing wrong with using LC's "Build a Portfolio" tool to auto select loans by interest rate.  Note that it doesn't automatically invest your money.  You'll still have to login periodically and invest in the notes it picks for you.  There is also the "Prime" service that will auto select and invest if you have $25k+ in your account.

I like to think of myself as above average, and you can definitely do better by filtering the notes.  There are lots of ideas in Peter's blog and in the forums.  Peter's favorite filter (I think) is notes with 0 inquiries.  You can play with the filters and see the expected return on sites like http://lendstats.com" class="bbc_link" target="_blank">lendstats.com or http://nickelsteamroller.com" class="bbc_link" target="_blank">nickelsteamroller.com.  Lending Club is supposedly working on an automatic investing tool using filters.  In the meantime, there are for-profit third-party websites like http://interestradar.com" class="bbc_link" target="_blank">interestradar.com and Nickel Steamroller that can do it as well.

I'll add that the borrowers for A grade loans are slightly more likely to pay off the loan early.  Then you'll have to wait a few days for the funds to settle, find another loan to invest in, and wait a bit for the loan to be issued and start accruing interest on your investment again; thereby, slightly lessening returns.

https://forum.lendacademy.com/index.php?topic=1457.msg10821#msg88888888Quote"> from: nonattender on August 18, 2013, 03:02:43 PM