I thoroughly like investing in Lending Club and peer-to-peer lending where I can earn a higher rate of return than many other investing options and definitely higher than a savings account or money market fund.
I have been investing with Lending Club for almost four years now, and it has truly been a great experience that I would highly recommend to others who are looking for a greater rate of return on their investments than others.
Lending Club is a great way to earn a passive income that will supplement and diversify your investments. It is easy to earn passive income from Lending Club.
Lending Club Makes A Great Diversified Investment
One of the greatest advantages of Lending Club and peer-to-peer lending is that it allows you to be incredibly diversified in your investments. You have the option of investing in risky loans as well as a host of safe loans earning a good rate of return from people who have good credit scores, have been employed by the current employer for decades, have a mortgage, and even people who have not been delinquent on loan payments in the past two years.
Additionally, by only having to invest a minimum of $25 in a single loan, you share only a very minor portion of the risk. There are a group of investors who pool their money together in each loan. Some investors risk more money, but quite a few like me only invest $25 at a time in any one loan. This significantly reduces your risk of default by spreading your money around to many loans throughout the Peer to Peer lending investing portal. [click to continue…]
Is the stock market gambling? Should people consider trading in the stock market to be a form of gambling? The answers to these questions are an unequivocal – No! Investing in the stock market is not gambling, and novice investors should not think of it in that way.
Equating the stock market to gambling is a myth that people on the internet and television pundits have perpetuated for years. And, it’s simply not true.
While investing and gambling have a few similar characteristics, they are very much different. And, if an investor does not take trading stocks or buying shares of mutual funds seriously and equates it to gambling, they are in serious jeopardy of losing money or missing out on gains from the stock market that they need for retirement.
Why Stock Trading Is Not Gambling
Stock Is Ownership
Investors must remember that they are purchasing ownership in a company when they buy shares of common stock. Investors own a very small portion of the company. That’s why I love buying cans of Dr. Pepper. It feels like more money is ultimately going back into my pocket with every sip.
Buying shares of a company is the equivalent to having a claim on the assets, debts, and more importantly a small fraction of the profits of the company whose shares you buy. Far too often, investors look at buying shares of a company simply as trading stocks. They forget that they are now owners of the company too.
To gain an advantage and earn a profit on your stock trading, investors must try to gauge the company and its profitability. Incorrectly gauging profitability in the short and, more importantly, over the long term is why stock prices fluctuate on the stock exchanges. The profit outlook for business is always changing, and investors are using stock charts, news, rumors, company metrics, and fundamental analysis to estimate the future earnings of a company and subsequently the value of its stock in the future. [click to continue…]