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Author Topic: Question about Individual 401K (+question on bots)

b
  • Posts: 12
Hey all,

I have a few questions thought you may be able to help me with.

1. Retirement Account: I want to investing in Lending Club notes as part of my retirement account.  I recently left my job and created a consulting company.  So I am planning on creating an Individual 401k (also called solo 401K) retirement account.  It has a much higher contribution limit (~50K; 18K self; and about 30K from profit distributions from the company).  However, I'm not clear how this works with LC.  LC offers different retirement accounts including SEP IRA, but not Individual 401K.   I plan to create my Individual 401K with Fidelity.  At that point, how do I invest in Lending Club from it?

2. Robots: I set up LendingRobot to invest my initial LC account.  However, it seems to want to manage ALL of it.  Am I able to tell the bot to only invest part of it?  NSR seems to be the same way when you link an account; though not 100% sure as I didn't link yet.  You can link and just do the analytics, but I'm asking is there any way to get a bot to invest only a portion of my LC account or just one portfolio within it.  Do any of the bots allow this? 
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T
  • Posts: 6588
Updates:

*On #1- spoke to Schwab re: individual 401k.  They said they could not do LendingClub because they cannot consider anything involving debt as an alternative investment.  They were very helpful; even giving me a reference to another company- a trust company that they said would have more flexibility making alternative investments.  However, I am still stuck- as I'd prefer to use a mainstream 'solo 401k' provider AND also invest in LC through it. 

*On #2- NSR wrote this to me: "Thanks for reaching out. We strongly advise against having multiple providers investing within one account. You can learn more here: Can NSR only manage a portion of the funds in my investing account?".  The answer is no.  I wanted to avoid multiple accounts, especially due to minimums  (LC charges $100/yr for retirement accounts; unless have 5K invested in them; so splitting accounts means adding more than I had wanted to at first.
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.
  • Posts: 61
LendingRobot does have a "Minimum cash balance to leave on account" feature in which you set to a specific dollar amount of your choice. LR will keep this as cash in your account, allowing you to use those funds to manually invest in notes of your choice.

Might be the closest way to segmenting a single account as you are looking to do.
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T
  • Posts: 6588
Ryan- cool, thanks; will check that out!
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B
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  • Full Member
  • Posts: 107
LendingClub uses Self Directed IRA Services for their IRA administrator. You may want to check with them to see if they offer individual 401 (k) plans. www.sdiraservices.com


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T
  • Posts: 6588

Quote
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