P2P Lending / NFT Lending Forum

I'm continuing to reinvest in my IRA account, however I didn't transfer this year's IRA deposit into LC.  I'm using NSR's Fully Managed Aggressive tool in my IRA.  This year my IRA is yielding 7.91% YTD which is up from last year...my history is below. 

Overall Yield   7.36%
2013 Yield   13.10%
2014 Yield   12.86%
2015 Yield   11.11%
2016 Yield   3.69%
2017 Yield   5.87%
2018 YTD   7.91%

I've been letting my taxable account run down, withdrawing cash each Friday morning and putting it into a balanced portfolio of ETFs I've been investing in for the last couple of years.  My return is better this year (I suppose a lot of the defaults have already happened).   I'm contemplating turning reinvestment back on at some point, but still want to get the overall value lower as I've run into the same writeoff limits as lascott.  My taxable account performance is:

Overall Yield   7.48%
2011 Yield   10.35%
2012 Yield   10.76%
2013 Yield   12.17%
2014 Yield   11.20%
2015 Yield   9.75%
2016 Yield   4.12%
2017 Yield   1.12%
2018 YTD Yield   4.57%

A link to this group showed up in my Facebook feed.

http://americanvalidation.com/dismiss-illegal-lending-club-loans-now/" class="bbc_link" target="_blank">http://americanvalidation.com/dismiss-illegal-lending-club-loans-now/

I think I saw a similar one a few weeks back trolling for Prosper borrowers.  Thoughts?

https://forum.lendacademy.com/index.php?topic=4433.msg40786#msg88888888Quote"> from: jz451 on May 05, 2017, 03:20:34 PM

Back when this thread started I think Lending Club was just issuing a 1099OID and then gave you a list of your written off notes and you basically had to figure out how to make the adjustment yourself.  They didn't issue a 1099B form basically declaring them as Capital Losses.  So there was a lot more doubt on how to report these on taxes and I think one could build a better case for interpreting the rules in different ways should the IRS have audited you.  However the last few years Lending Club has issued the 1099B forms and even provided their guide to do taxes even though I believe they still disclaim that it is tax advice.  You can certainly choose to report things differently than Lending Club recommends, but you should be aware that the red flags will go up when the IRS notices that you had 1099B transactions that you didn't report and they will probably wonder why you adjusted the OID number.  Those red flags may cause an audit and then you will get the opportunity to explain to them in person why you decided to do what you did.  Let us know how it turns out.

My Updates:

Measure         Standard Account                 IRA Account
ANAR             7.66                                      6.04
WAIR             17.61                                    19.28
WAAoP          29.5                                      18.5
#Notes           13,453                                  2,293
WAIR-ANAR   9.95                                      13.24
A                    3.9                                        0.0
B                    14.3                                      0.1
C                    16.7                                      23.6
D                    19.3                                      29.0
E                    25.2                                       29.1
F                     17.2                                       16.4
G                    3.3                                         1.8
36                  37.9                                        30.7
60                  62.1                                       69.3
Q                    86.28                                     64.15
R                    90.60                                     78.55
S                    84.05                                     82.16
                      No Folio                                  No Folio

2017 XIRR      -1.37                                     -1.31


Both accounts negative returns YTD.

I've wondered if there is another more traditional type of investment account that SDIRA is able to be custodian of?  That would allow you to keep SDIRA as custodian, but slowly move out of LendingClub. I know SDIRA is meant mostly to be custodian of "non-traditional" IRA assets like real estate, precious metals, etc., but has anyone ever asked them if they would be custodian of a discount brokerage account?

Also I do think that SDIRA charges $100 annual fee regardless of account size, but LC pays the fee if we have over $10,000 in LendingClub.  So the fee would probably kick in once LC assets drop regardless of how much is invested in other assets. Also maybe LC has only agreed to pay the fee only if LC is the only asset in the account?

These are all questions I have thought about that I haven't seen anyone answer and I haven't taken the initiative to call SDIRA Services to ask.


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Below are the ROI's of each category that I have invested in in my taxable account as calculated by NSR.

By far the worst category is Medical and surprisingly to me, my best is Wedding.  I do have relatively few loans in some of these categories, so it may not be statistically representative, but it's interesting.  I guess it makes sense...people who need loans for medical issues may then be unable to work for some period of time, and I guess wedding borrowers may be relatively well off, but need the funds to have their big party.

The original poster mentioned nixing Debt Consolidation off the list because they noticed that most of their defaults were that category.  Well, Debt Consolidation is by far the majority of my loans, so it would make sense that most of my defaults are those.  But overall, it's a solidly performing category.

Monthly return can be calculated by using month start and month end dates and balances as well as any intra-month deposits/withdrawal dates and amounts and use the XIRR function in Excel/Google Sheets.

My full year losses were nearly 80% of the interest I earned.  My early years with LC this ratio was more of a constant 33%.  My last few months, the losses have exceeded my interest earned.  This better improve soon.  I've stopped reinvesting my taxable account for the foreseeable future.

My Updates:

Measure         Standard Account                 IRA Account
ANAR             7.81                                      6.44
WAIR             17.61                                    19.24
WAAoP          27.6                                      19.1
#Notes           13,453                                  1,997
WAIR-ANAR   9.80                                      12.80
A                    4.0                                        0.0
B                    14.5                                       0.2
C                    16.9                                       21.3
D                    19.5                                      29.6
E                    24.9                                       29.5
F                     16.9                                       17.3
G                    3.3                                         2.2
36                  39.0                                        29.1
60                  61.0                                       70.9
Q                    88.19                                     70.46
R                    91.30                                     82.51
S                    87.67                                     79.14
                      No Folio                                  No Folio

2016 XIRR      4.12%                                     3.69
Reinvesting?   No                                          Yes, with NSR Invest Aggressive Managed

https://forum.lendacademy.com/index.php?topic=3551.msg39124#msg88888888Quote"> from: lascott on December 26, 2016, 03:25:01 PM

I had a rule that bought only the highest "Expected Returns" from Lending Robot for a long time. Unfortunately this is one of my lower performing portfolios (<4%).  I am now using NSR's Aggressive management on my IRA and it is doing well (currently 10.4%)....but the notes there are newer so just may not yet be hitting their default peak. I had also started using Bluevestment's more conservative BluePicks Moderate for my taxable account and they are doing OK as well (7.9%) but again the note are newer there too).  I went more conservative on my taxable account hoping to have fewer capital losses going forward. But now I've stopped reinvesting totally in my taxable account for a while.

I really like the LR guys and their overall website and research and blog posts, etc., but I have to say I've been disappointed in the performance of notes that were supposed to have high expected returns. 

I haven't used any folio trading options on my accounts. It's not clear to me how LR charges you if they later sell a note they bought for you...do you still pay the charge until the note would have been paid off?  I'm also definitely concerned about the tax reporting implications of folio trading in a taxable account (keeping track of adjusted basis on individual notes, etc).  If I ever do enable folio, it would be in my IRA.


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I would just "forget" to change my address. I don't know about Prosper, but LC never actually mails you anything. As far as taxes go, just file your federal and new state taxes as usual. I'm not a tax attorney and have no basis for this advice other than it's probably what I'd do in your situation.


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Shutting down my reinvesting on my taxable account for a while.  Will let the Roth IRA continue for a while as my performance has actually been starting to turn around there.

The understanding your returns graph is very misrepresentative of how our accounts are currently performing, since, like the "interest earned" on the login page, it goes back to day 1 of opening our accounts.  I have 5 years of decent earnings that will take a lot of losses to drag down.  It would be a lot more enlightening to be able to see YTD or a rolling 12 months' performance or something along those lines.

https://forum.lendacademy.com/index.php?topic=4155.msg38382#msg88888888Quote"> from: rubicon on November 03, 2016, 09:59:46 AM