One of my 2017 goals is to diversify my investments to include more areas than just the stock market. Lending Club is one of the alternative investments I’ve selected. Other’s include Altcoins, better know as Cryptocurrencies. I’ve invested $5,000 into Lending Club, which is a Peer-to-Peer lending network. Click on this link to learn more about my Lending Club strategy.
This post documents month six of my Lending Club journey. My Adjusted Net Annualized Return has been on a rollercoaster ride. It has gone from 6.72% in month 1, up to 7.39% in month 2, up to 11.02% in month 3, then down to 8.29% month 4, further down to 7.11% in month 5. I’m happy to announce that for the month of July my return went up slightly.
In the month of July, my annualized return was 7.36%.
Lending Club Month Six Results
To date, I’ve received payments totaling 1,041.99. This month I received $221.76. The breakdown of payments are: $51.99 in interest and $171.67 in returned principal.
After six months with Lending Club, I’ve had two loans charged-off. I also now have 2 loans that are more than 60 days late, and 2 loans that are less than 30 days late. At this point, I’m assuming the 60+ days late loans will be charged off soon.
UPDATE – I stopped using automatic investing on July 1st. For now, I’m holding returned principle. I’ll either select a few loans to fund or move the money in Altcoins. I’m going to wait another 30-days before I decided what to do with this cash. I made this decision because the auto system was selecting loans that I would never fund.
I’ll be posting monthly updates, so you all can follow along and see how Lending Club performs for me. I’ve also added my Lending Club monthly income to my monthly total income posts.
Do you have money invested with Lending Club, Prosper, or another P2P service? If yes, how are your loans performing?