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Author Topic: How much is too much?

w
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How much is too much?
OP: December 11, 2016, 12:00:00 AM
I am still relatively new to Lending Club.  I have about 120 notes right now. I have some more money coming at the beginning of the year I need to invest.  I was just wondering how much is too much?
Do most of you have:

A) Less than $5000.00
B) more than $10,000
C) $20,000 plus


just curious......
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j
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How much is too much?
#1: December 11, 2016, 12:00:00 AM
I've been investing since March and my account is on the small side at $1600. I plan to increase it once I get a stable income since I'm a recent college grad.
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How much is too much?
#2: December 11, 2016, 12:00:00 AM
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S
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How much is too much?
#3: December 11, 2016, 12:00:00 AM
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How much is too much?
#4: December 11, 2016, 12:00:00 AM
For me, it is not a dollar amount so much as it is a percentage of your portfolio.  I'd say 5-15% of your investments .... I'm currently at about 8% ... Like Fred said, diversify.
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f
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How much is too much?
#5: December 11, 2016, 12:00:00 AM
I personally do not think you should spend a dime into P2P, until you decide the level of your exposure.  I got into LC based on an article I read and salivated.  Reality set in.  I am doing fine but definitely not what I thought I could get.  I have also changed my strategy from the beginning though as well.
Fred who I respect more than anyone else will tell ya, take your time, no reason to hurry into anything. 
from: Fred93 on December 11, 2016, 04:37:44 PM
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How much is too much?
#6: December 11, 2016, 12:00:00 AM
There's an old concept called "the sleeping point".  That's the point for which you're looking - and it's different for everyone.

Go read this:  https://www.amazon.com/Speculation-Fine-Art-Thoughts-Life/dp/1607962659
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How much is too much?
#7: December 17, 2016, 12:00:00 AM
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r
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How much is too much?
#8: December 18, 2016, 12:00:00 AM
Being one of the younger posters on this board, I tend to view this question differently than the wise elders we have here.  If you are like me, you didn't graduate into any meaningful family wealth.  And assume you are a recent college graduate, what does percentage of net worth mean?  You have nothing!  You could even have negative networth.  What does percentage of investments mean?  You may have $2k to your name!  I think these rules are good and increase in relevance as you age (I pay more attention to them now several years after college vs. when I started in college).

One thing you find in investing is concentrated bets create wealth, diversified bets maintain wealth.  What are you comfortable losing?  Maybe $10K represented half of my networth right after college, but would losing $10K really impact my future?  No, because unlike our wise elders I have my entire career to earn back $10K.  That's just a bonus check, right?

So while I agree with the spirit of the rules above, I disagree with their application regardless of age.  You have lots of times to learn and recover from mistakes after college.  Not as much when you are nearing retirement.  So I'd take this into account when thinking about how to approach the question

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T
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How much is too much?
#9: December 18, 2016, 12:00:00 AM
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E
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How much is too much?
#10: January 04, 2017, 12:00:00 AM
Excellent points and thoughts from both rawraw and SLCPaladin ... listen to them.

Edward
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