P2P Lending / NFT Lending Forum

dagilbe and graceful are correct indeed.

Here is the bad thing with a Prosper IRA though.

Once you get your funds sent to Sterling Trust who will forward them to your Prosper IRA account, you can start buying Prosper notes from within your IRA.
Sounds great right?
The problem comes in if you ever decide to get your investment back out of your Prosper IRA. Once you buy a note from within a Prosper IRA, there is no way for you to sell that note early to convert it back to cash. If you buy a note in your Prosper IRA you own that note until maturity.
You can transfer your cash balance back to Sterling Trust in order to move it somewhere else, but you cannot sell your notes in your IRA.

If your not sure you want to tie your funds up for a full 3 or 5 years, I would suggest using Lending Club.

Lending Club lets you buy and sell notes in an IRA account through Folio just like they let you buy and sell in a normal account.
You still need to use a trustee to transfer the funds between yourself and Lending Club, but at least in an emergency you could sell your notes, transfer the cash back to the trustee, and get your funds back.

Just my .02 cents.

Jeff

Hi guys and gals,
I think one thing you all are overlooking is the fact that Prosper won't let you trade your IRA notes through Folio.
I have an IRA with Prosper, through Sterling Trust.
Here is the HUGE problem. Once you buy a note in your IRA account, you own that note until maturity. There is NO WAY to get back out of that note.
I just got off the phone with Prosper to ask them what options I have to get my funds back out of the IRA. The response was that I have no options other than to wait until the notes mature.
I can transfer the cash that the account generates if I want too, but the notes I own, I have to hold until maturity.
There are no techniques you can use to get those notes converted back into cash.
Once you buy a Prosper note from within a Prosper IRA, You own it until it pays off or defaults.

You better be 100% sure that you will never have a need to get the money you invest into a Prosper IRA back in an emergency.

On the other hand, Lending Club lets you trade notes in an IRA just like they let you trade regular account notes. I could convert my Lending Club IRA notes into cash in a matter of days if I wanted to discount them enough.

I own regular and IRA accounts in both Prosper and Lending Club.

Jeff