Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
Almost all of my retirement investments are in low-cost equity index funds. Looking for an income source with more diversity (beyond stocks and bonds) in late 2015, I invested $3K at Prosper.com in personal loans. (I actually invest through LendingRobot.com, which uses my criteria to buy shares of loans as I get payback from borrowers.) $3K allows one to buy $25 shares of 120 loans, which is recommended to reduce risk sufficiently.

So far, this experiment has been a success. My current balance is $3,354.73 and my estimated return is 15.17% (by LendingRobot and 19.7% by Prosper), but that rate will drop as my portfolio of loans ages. I plan to let this experiment run for another 18 months before I decide to commit more money to it.

I do not consider this low risk, but if risk is volatility (beta) then the risk is lower than my S&P500 fund, for example.

Regards,
Prometheuss
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement