Lending Club Update 4/4/19

I know this is long over due and I normally like to get these done every 3 months however March was a busy month and I finally carved out some time for this, so let’s get started.

To refresh everyone on the update from December found here, I had 274 active notes after investing another $1500 into the platform. I had a rather even split of notes with an average weighted rate of 15.88% and had collected $717.29 as of then.

LC notes snip 12.13.18note details 12.13.18

I began pulling money out of the platform about November or late October and have been pulling money out ever since. I plan to keep pulling money out until I begin work full time in June and shortly after that I will begin reinvesting back into the platform as well as putting new money into assuming I have extra money left over after the 40% rule. For those of you that are joining for the first time or forgot the backstory, I am a college student with no income for 9 months of the year, I invested in Lending Club to receive a great yield (6-9% generally) and keeping my money liquid with monthly payments to pay for my expenses during school. In early April my portfolio looks like this.

lc 4.4.19lc pie chart

Had some defaults and some fully paid notes along the way but not looking bad, we earned another ~$260 in interest in the last 4 months so far although it is slowing down.

Below we will compare the non-adjusted and adjusted account values with December data first followed by April data.

LC interest non adjust

lc adj 4.4.19

The account value has decreased dramatically due to pulling out hundreds of dollars every month to live off of.

LC interest 12.13.18lc non adj 4.4.19

The April adjusted value has taken a big hit due to the numerous late notes I am currently holding. Even if they default I still should be in good shape overall and will just need to ride out the storm the next few months until we can get some new money into the account and breathe some life into it.

lc table

Above is a table I populate nearly every month on various aspects of the account including the immediate return taken from dividing the adjusted account value by the (total deposited into the account – the total withdrawn). This is taken over the course of 2 years now so the 10% isn’t all that great however as with all of my accounts they have grown dramatically over the years and I have made wiser investing decisions as time has gone on usually. Also returns were so low in October due to the influx of new capital into the account and the notes hadn’t started payments yet essentially making them dead money at the time.

The final table I will show you guys today is a simple interest table by each month.

interest lc

You can see the dramatic uptick with the $3000 I put into the account this summer as we entered Fall and now its on the downswing again.

That just about wraps it up for me, I hope you all learned something today in regards to Lending Club and how I keep track of its performance. I can’t recommend the platform enough assuming it fits your investment criteria. I mentioned earlier my need for liquidity while making a decent return and getting paid monthly to cover my expenses and this platform does just that. I can’t beat the return with what I am getting either and I look forward to putting some more money into it in the future and being able to compound my returns rapidly. I should be able to purchase 8-10 notes a month at my current rate and with additional funds I could compound interest and reinvest in notes every 2 days on average in the future (15 notes a month or $375 in interest and principal every month).

As always let me know if you have any questions!

Thanks,

B^2

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