Comments on: Investing $100,000 with Lending Club PRIME

By: Dwayne

Dwayne — Sun, 01 Apr 2012 21:44:37 +0000

I am currently a borrower on one loan and in the process of getting another one. I don’t know about other people but my feeling about Lending Club that if something happened and I lost my income (Retirement, should be safe) I would pay LC before I would pay my credit cards. I know how I would feel and how it would hurt vs. a big bank.

By: Brian

Brian — Sat, 09 Jul 2011 01:54:20 +0000

How’s this going?

By: Joe

Joe — Tue, 14 Jun 2011 17:41:43 +0000

If you live in Texas you can still sign up for a trading account. You won’t be able to invest in notes when they are originally funded but you will be able to buy and sell existing notes. A lot of the time you can get much better deals through trading anyways.

By: Matt

Matt — Wed, 01 Jun 2011 03:07:58 +0000

Any update on how your experiment is going now that it has been a few more months?

By: Displacedmic

Displacedmic — Thu, 31 Mar 2011 18:32:09 +0000

You owe your mom 90k and you tied up monies in a 3 year higher-risk investment? if i were her i would kick your ass. if she has lent you that money at little or no interest you basically just invested the money for her – assuming you’re planning on paying her back with interest.

I could understand using that money to pay back DEBT, starting with the debts with the highest interest and moving down, but to make an investment with that money and a riskier one at that seems unethical to me.

As a parent myself I would give anything for my kid, but i don’t think i would allow him so much rope as to hang himself. i would have called that debt in if i knew what you are doing. i wonder if that would be the case with her as well?

i sincerely hope it works out – i admire your honest approach to this difficult time. you are clearly trying to move in the right direction

By: Philip

Philip — Sun, 27 Feb 2011 05:32:22 +0000

Hi, I love your lending club articles. Could you give us an update on the 100k? Also, if you had 100k in cash and you still have debt, why wouldn’t you just pay off the debt asap?

By: Joe

Joe — Sat, 09 Oct 2010 13:09:07 +0000

@Evan – I think you are correct on your calculations, however, keep in mind that you are receiving cash for every monthly payment. So that $250 you put into that note after one year is no longer $250 vested. You’ve got a portion back. If you reinvest it, it will continue to work, but if you keep it cash, then yes, the APY on that “original” amount will go down, but at the same time, the amount at risk is less.

@Dan B – You have a good concern, however, I think the loans are issued out through a bank.. so it’s not like if LC goes under, than everyone who has a loan through them doesn’t have to pay their bills. It’d probably be a mess, but the loans would still be active and get paid. Sorting out the mess would be the problem. Even so, I THINK this is how it would go.

By: Evan

Evan — Sat, 18 Sep 2010 11:26:14 +0000

I don’t think Lending Club’s “Net Annualized Return” is the same as the APY on a CD. I did the math and according to my calculations, a 3-yr B-rated note at 10.75% interest is about a 5.2% APY investment. Or maybe I did my math wrong, but if so, I’d like to see your math.

By: Dan B

Dan B — Tue, 24 Aug 2010 23:09:55 +0000

The only thing that makes me nervous about LC is the fact that we’re not investing in a bunch of loans but rather a bunch of loans that are all obligations of LC. If LC goes under for any reason all of us will be standing at the back of the long line that reads “Creditors of LC” quite a few spots behind the people who lent $$ to start LC & keep them going the last 3 years. And this is on top of whatever risk we’re taking in terms of individual notes defaulting.

By: Lop at Rebates Money

Lop at Rebates Money — Tue, 24 Aug 2010 20:56:50 +0000

Wow! $100K just like that huh?! Pretty bold, but hey, the greater the risks the greater the rewards. Good luck with your return!