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Messages - anabio

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Suggestions / Certificate Expiration
« on: October 15, 2020, 11:00:00 PM »
Is Lend Academy going to renew their Certificate? It just expired today (Oct 16,2020)
Earlier this month I received the last payment of the last 5 year loan in my account (I had 6 of them). I'm now totally out...or I thought I was. My last loan charged off was about 2 years ago. My last recovery was in October of last year. I figured all the recoveries that I was going to get have been received so I was getting ready to close my LC account. Well...I was wrong.

I just got a recovery from a loan whose last payment was in January of 2015 (5 years ago). It was charged off in June of 2015. I wonder what causes an initial recovery payment of such an old charged off loan?

Just wondering who holds the record for an initial recovery payment of an old loan? Anyone start getting recoveries of a loan that was charged off more than 4 1/2 years ago?
This is a contrast to the thread "what is your minimum acceptable return". In this case my MAXIMUM interest is 0%.

Yesterday I told my investment advisor to look for a way to ensure I made nothing or as little as possible on one of my investments, FOREVER.

A lesson in thinking outside the box...thought someone might be interested.

Just got done filing taxes for 2017 and it started me thinking of future years.

I am retired and live on social security, a work pension, ROTH withdrawals and the remnants of a "golden parachute". That remnant ends in 1 1/2 years so I will need to find some income to replace it.

There are a few reasons for purchasing an annuity (and a few more than a few to NOT purchase one). One of those reasons to purchase is to provide guaranteed income for the rest of your life. When I retired I opened an annuity for guaranteed income for the rest of my life to replace that parachute; to start when my parachute ended. This particular annuity is non-qualified (I funded it with after tax money).

Because of the way an annuity income stream works I have come to realize that I don't want that annuity earning any interest or gain, BECAUSE of taxes.

There are two values to this particular annuity. A current value and an income stream value. The current value is the initial investment plus any gain realized. The Income stream value is based upon the initial investment plus 6.5% interest each year. Once you turn on an annuity income stream that income value interest stops BUT the current value gains do not. The income stream value is basically meaningless except that it is used to determine the yearly income stream amount when starting the payments. You get that income for life even if your income payments eventually total more than that income stream value. 

Once the income stream starts the current value is essentially meaningless also; except for one condition in my case. That condition is why I don't want to earn money.

Once the income stream starts it doesn't end until you die. Also (for all practical purposes) your income payment WILL NOT increase in future years even if your current value increases. What WILL happen if there is a gain is that some (or all) of my income payment will be taxable. This is a non-qualified annuity. As such, if my annuity does not increase in value I have 15 years worth of non taxable income. (It will take 15 years of income to wipe out that inital investment.) Obviously when all the current value is wiped out my income stream payment will be fully taxable...but because of the annuuity I still HAVE an income stream. If the annuity gains 6% or more in one of those first 15 years, ALL of that year's income is taxable. There is NO benfit to me if this happens. I get the same amount of money...BUT I DO end up paying a good chunk of it to the IRS.

PLUS a larger part of my social security is taxed. Currently only 46% of my social security is taxable. (I purposefully set up my income for this...I know...I know...when RMD kicks in that will go up to 85%...but that's the way it goes...). If my income stream becomes taxable 85% of my social security is taxable.

Now you know why I don't want to earn anything on this particular investment.

By the way...for those of you who don't know...ROTH distributions are NOT taxable and also DO NOT count in the formula for determining how much of social security is taxable.
Off Topic / Cash Parking
« on: January 29, 2018, 12:00:00 AM »
Got one year to go....but I really can start using it now as a kind of 1 year CD...just haven't got the urge yet.

11 years ago I "hid" 200,000 cash in a fixed annuity....not for investment purposes but to get it off my assets so I even had a chance of getting financial aid for my children, one of whom was going to college a few years later.

Side note: Lot of good that did me...among other colleges, she got accepted into a couple of UC systems...even with their high costs we were only able to get about $3,000 in free money...I made too much money...didn't think that one through the whole way....

Anyway. That fixed annuity pays 3% and in one year there will no longer be any withdrawal penalty, so I can start using it as a bank savings account...

Not sure what they will do if they see multiple deposits coming in and withdrawals going out... anyone have any experience in this situation...will they stop me from making deposits/withdrawals???
Investors - LC / Winner of the "they really,really, REALLY tried" trophy
« on: December 14, 2017, 12:00:00 AM »
Had a loan just pay off that I had been sure for the past year that they would have defaulted. Loan id 28754440 was a loan for around $6000. This person has been late over 20 times since loan inception. FICO has been as low as 530. Currently  it is 555.  Loan was ostensibly meant for debt consolidation. I first said "uhohh" a few months after the loan originated when I noticed Fico did not jump up which signifies to me that the person really didn't use the loan to pay off credit cards. Loan never officially got into 30-120 days late although by my calendar there were times when it was 34-35 days late.

This person made their 36th payment on Nov 22 (24 days late) which should have paid off the  loan but since they had so many late payments additional interest must have been charged because after paying 36 payments they still owed 9 cents.

They paid 9 cents on Dec 13 (25 days late). This loan actually paid off! In and of itself I consider that a minor miracle...BUT...

As a radio host named Paul Harvey (anybody remember him?) many times said:

"The Rest of the Story?"

This person paid off the loan AFTER they declared bankruptcy.

The notes section says they declared bankruptcy on Dec 11. The final payment was on Dec 13. Two days after the bankruptcy...

I've wondered about this for quite some time. I recently got a charge off for a loan who's stated purpose was credit card refinance.

When I started buying loans 3 years ago I let LC's auto investing choose my loans. The majority of loan purposes was to refinance / paydown debt. I also got a number of loans for other things (vacation, home remodel, medical, etc).

I re-invested proceeds for the next 9 months. When I re-invested I created my own filter to only invest in debt paydown type loans. When i focused on those loans I noticed that some of these loans requested much more money than their Info page showed they owed to revolving credit. I didn't buy those loans. However... LC's auto purchase did buy those loans for the first 3 months of my LC purchases.

Why would the borrower do this?

The revolving credit balance field would include all credit card debt of the borrower, right? I assume that is right so for someone to request more than double the amount of his credit card balance under the category of credit card refinance is (more than a little) bit suspicious, right?

What was he/she doing? ... asking for money for a spending spree?

When I noticed this I seriously thought of checking all my refinance loans and selling any I saw that didn't get a good fico jump (that would mean they obviously did not use the loan proceeds to pay down their debt). I didn't sell for two main reasons: I didn't want to take a Folio loss on a "maybe" and (more importantly) I didn't want to deal with the tax complexity of Folio sales.

This particular loan id is 15249524. This person obviously used some of the proceeds to pay down the credit card debt of around $4,000 because his FICO jumped up 50 points within two months of getting the loan. His fico score stayed that high for the next 10 months, then it started dropping. Was he using that extra $5,000 to finance his lifestyle and then when it ran out he resumed his credit card binge...showing he did not learn his lesson? Me thinks this was the case...which means that person never really intended to mend his ways.
Investors - LC / Account was sold to a third party debt buyer
« on: May 02, 2017, 11:00:00 PM »
Sometimes you get something back...sometimes you don't (sounds like a candy bar commercial...)

I checked one of my sold notes.

Loan ID: 31187272
sold 12/2/16
$13.20 due
1/30/17 recovery from charged off loan = $1.35
1/30/17 recovery fee = $0.24

So I got a small portion of what was owed. In this case the recovery happened about 2 months after the sale...your results may vary...
Investors - LC / 22 loans paid off HOWEVER 18 of those now in grace.
« on: March 31, 2017, 11:00:00 PM »
I'm  now at the point where my loans are paying off (not early). I see today that 22 of my loans paid off on time...actually their detail shows they paid the amount they have always paid each month BUT 19 of them now appear as IGP???

When I view the loans some of them show a 0 balance and some show a 1 cent balance. If I hover over the balance due I get between .004 cents and .008 cents due.

Has anyone else with loans paying off normally (not early) seen this? How long before LC "forgives" the partial cent owed and moves them to paid in full?

Maybe I'll call LC when they open Monday morning.
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