Converting from growth to income

[Notaguru]

About 15 months ago I sought more diversity by investing in debt instruments, so tried Lending Club with conservative borrower criteria. So far, it's been satisfactory - determined by net value of our LC account.

Having just turned 80, I decided that income is a more appropriate goal than growth. With LC, it appears that one converts from growth to income by stopping automated reinvesting, and then periodically withdrawing funds from the account. Depending on how often I withdraw, that process creates periods during which I neither have use of the funds nor are they generating income. It also looks like that will complicate our tax filings...

Is there a better way?

[Roux]

http://liquidp2p.com" class="bbc_link" target="_blank">Liquidp2p.com has a feature called Constant Value. This feature allows you to set a Constant Value X. Then receive weekly transfers of excess dividend payments over and above the set value, while keeping you invested at Constant Value X. We are working on Drawn Down multi-year feature, but this feature is currently not available.

[Fred93]

https://forum.lendacademy.com/index.php?topic=4921.msg43838#msg88888888Quote"> from: Notaguru on September 17, 2018, 12:25:40 PM

[TravelingPennies]

When borrower payments are re-loaned under the LC umbrella, my LC balance simply grows with no tax issues - right? But isn't there a tax consequence incurred when funds are withdrawn from LC?
At this moment, I've simply stopped automatic reinvesting - and will draw funds from LC once or twice a month. Actually, I've never done that, and wonder about the mechanism.

Is there a better way to make my LC account an INCOME machine? I'm not comfortable with LiquidP2P, simply because of the lack of user experience and track record.

??

 

[arcee49]

Are you referring to investing in LC through a Qualified Plan?  I.e. IRA

If so, you can still just transfer the funds to another custodian to not pay taxes, albeit pay a fee to do it.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4921.msg43841#msg88888888Quote"> from: Notaguru on September 18, 2018, 11:27:28 AM