Using Automated Investing on Lending Club for Passive Income

Lending Club Passive Income With Automated Investing

I’m a fan of Lending Club. I always have been. I’ve been using the service for years, and I’ve even appeared on Fox Business praising the investment service. I’ve grown to enjoy the Lending Club passive income that my investments in loans pays me each month, and I put that passive income back to work in new, additional loans. In the past, I had to do all of the legwork myself. I had to find new loans on Lending Club to invest in. Now with Lending Club’s Automated Investing, the website does all the work for me. Lending Club is a great investment. The loans that you invest in can be a great addition to your overall investment portfolio. It has a … Read more

The Ultimate Guide to Earning a 10% Rate of Return on Your Investments

The US Dollar

Are you getting the best rate of return on investment? Kiplinger’s Personal Finance Magazine annually discusses ways to boost your investment yield in its latest issue. I have to say that I am always pretty disappointed with their recommendations. I love the magazine, but I didn’t really care for a list of mutual funds and Exchange Traded Funds (ETFs). But, I wanted concrete ideas on how to earn a 10% annual rate of return on my investments. US Treasuries are earning less than 1% and money market funds are not fairing much better. Certificates of deposit are barely scraping by at 2% or so even for the longest maturities. But, are these levels going to last? The stock market has … Read more

Dissecting My Twelve Loans That Defaulted On Lending Club

Lending Club Passive Income With Automated Investing

Lending Club Passive Income With Automated InvestingLast week I made a horrible confession. I am a greedy investor, or more importantly, I WAS a greedy investor when it came to my Lending Club account and investing in peer to peer lending loans. But, I have learned the errors of my ways. I love Lending Club and the idea of earning a great rate of return by investing directly in peer to peer loans of people who need funding and may not otherwise receive it.

So, I’m not giving up on investing in peer to peer lending through Lending Club. I’m trying to be a better loan picker and evaluator. So, here are a few areas that my Lending Club default loans have in common. Maybe by understanding a little more about why these may have defaulted, I can avoid making similar mistakes going forward in the future with new peer to peer loans.

Traits Of My Defaulted Peer To Peer Lending Loans

36 Month Maturities

Every single one of the 12 loans that I have that defaulted have a 36 month length of maturity. This is a little hard to gauge because I started investing in some of these peer to peer loans before Lending Club started offering five year loans.

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How I Got Greedy and Lost My Shirt with Peer To Peer Lending Loans

I completely messed up investing in peer to peer loans through Lending Club by being greedy. Jim Cramer is famous for saying that both bulls and bears can make money, but pigs get slaughtered. What he means is that it is one thing to make money or make a living with your investments. But, to try and make a killing on them, you will often be crushed by those very same investments. I’m ashamed to say that I got greedy with my Lending Club investments and tried to push the envelope, and I got burnt. Keep reading to see what happened and what I’m doing now with the new loans I’m investing in now through Lending Club. Peer To Peer Loans … Read more