Message from @Zyzz

Discord ID: 354429695124832256


2017-09-05 00:41:04 UTC  

because LC has incentive to originate as many loans as they can. they will manipulate their risk metrics to justify funding a loan at X% and Grade which implies a certain level of risk. the risk that comes along with these poorly underwritten loans do not justify the pay off

2017-09-05 00:42:29 UTC  

additionally, as a borrower you do not have a lot of information from the borrower so it can be tough to make an assessment yourself as to how risky the loan actually is. you are pretty much going off the grade of the loan and their historical credit information without really understanding what their current income/expense situation is like. additionally, borrowers may say they will use the money for X but they may actually use it towards Y

2017-09-05 00:42:55 UTC  

i also believe there is a lot of fraud going on.. ie: people taking out loans before they die or taking out loans without any intention of paying them back

2017-09-05 00:44:07 UTC  

i would have lost money but i employed a strategy where i would buy the original issue, mark up 2% on the secondary market and sell it off to people who live in states that didn't have access to the original issue.. that made up the bulk of my return. all the defaults i suffered would have made my return negative if i didnt trade notes

2017-09-05 00:47:14 UTC  

I agree entirely with what you're saying, these are all things that I've considered. I currently have 8% of my savings at lending club. I have a base of 25% of my investment in 3 year loans between A and C. The rest is used to buy loans that are less than 5 months to maturity and yield over 2% APY. Over the course of a year, my yield is at ~9%.

2017-09-05 00:47:37 UTC  

damn you did better than me

2017-09-05 00:47:47 UTC  

My primary concern is that this is a scheme, and that my money won't be there to withdraw when it's all over.

2017-09-05 00:47:56 UTC  

i went to far out on the risk spectrum.. B-C with some D+E

2017-09-05 00:48:40 UTC  

After I found out they had a trading platform, I was in the clear.

2017-09-05 00:49:28 UTC  

@John O - , i don't think that'll happen(i think they may be FDIC insured) but with that said if you feel uncomfortable i'd withdraw my money as i have been doing over the last ~2 years

2017-09-05 00:50:42 UTC  

How do you make withdrawals without incurring charges?

2017-09-05 00:51:09 UTC  

on lending club? did you invest IRA money?

2017-09-05 00:51:22 UTC  

there is a transfer tab on the homepage.. you can withdraw money for free

2017-09-05 00:52:17 UTC  

Not IRA, personal savings. I might sound like a lunatic, but I don't trust any retirement fund.

2017-09-05 00:52:49 UTC  

Err... Cash money, not personal savings.

2017-09-05 00:53:29 UTC  

i hear you.. you should be able to withdraw all of it for free

2017-09-05 00:54:01 UTC  

even if its IRA money you just have to transfer the money to another IRA account

2017-09-05 00:54:27 UTC  

Gotya. I wired it in and incurred a $25 fee.

2017-09-05 00:55:32 UTC  

odd i never had a fee in any transfer contribution or withdrawl

2017-09-05 00:56:25 UTC  

was the fee charged by lending club or your bank?

2017-09-05 00:57:04 UTC  

it may be because you did a wire rather than an ACH/electronic disbursement transfer

2017-09-05 00:59:51 UTC  

The bank. It was because I wired it, but LC reimbursed me. They only reimburse deposits, though.

2017-09-05 01:00:20 UTC  

link your bank account and do a ACH transfer.. the fee should be $0

2017-09-05 01:01:06 UTC  

Once again, I might sound like an insane person, but I'm trying to get all my money out of financial instruments rn. When the economy starts to recess in a few years, I think It'll be best to be liquid.

2017-09-05 01:02:09 UTC  

nah man i am right there with you.. i am gradually liquidating my investments in general

2017-09-05 01:02:35 UTC  

probably not going to go 100% cash but i am gradually pairing down my holdings and getting more defensive with what i do hold

2017-09-05 01:03:32 UTC  

I hate playing this game. It's rigged from the start. I just need to buy a house and rent out a room.

2017-09-05 01:04:09 UTC  

dont buy now whatever you do

2017-09-05 01:04:19 UTC  

I don't delude myself into thinking I'll ever be a full time landlord, but my money has to go somewhere, and playing this gets me in fits.

2017-09-05 01:04:28 UTC  

i work in RE and homes are well overvalued

2017-09-05 01:04:29 UTC  

Oh yeah, I'm not retarded.

2017-09-05 01:04:30 UTC  

especially in FL

2017-09-05 01:04:43 UTC  

Orlando is inflated af

2017-09-07 02:26:47 UTC  

o.k. so, i'll be very boring for you fine men. Fail to diversify at your own risk. Finance is one where we must totally accept things the way they are. Idealism shouldn't play a role in finance, in my opinion. Indeed, I've learned a good deal from well vetted Jewish finance authors, among many other goys as well. This is an area where, while I cringe to throw any money (((their))) way, I have become a pragmatist. Examples of good Jewish financial authors who have it right (not scams) are Rick Edelman and William Bernstein. Among goys, classics such as Value Investing by Benjamin Graham, anything by Jack Bogle (founder of Vanguard), Rick Ferri, and many others are worthwhile. Diversify to be sure, and depending on your risk tolerance, you can do that any number of ways in terms of assett allocation. Also, maximize 401k, IRA's (even if you don't qualifty you can do back door Roth's), HSA's (a great way to further maximize pretax savings), and MINIMIZE expenses. Do not pay loads, or excessive fees, and Vanguard is an excellent source of low cost index funds (among many other things). Don't speculate on stocks either. It's a total crapshoot.

2017-09-07 02:31:28 UTC  

Also, while rebalancing is something I'll chat about later, the data strongly suggests that if you have greater than a decade of risk tolerance, then indexing and STAYING invested is important, because the data shows that trying to time the market highs or lows keeps you from gaining on the recovery side, and losing on the buying low side of things. It's very clear. Sometimes big market busts which may last 1-2 years, show that the entire recovery occurred within a few very short months . If you were sitting on the sidelines waiting for the bottom you may very well may have missed the entire recovery (into positive returns) if you were not vested during that particular time. Nobody can time the market either. Nobody. So, I urge you not to try it.

2017-09-07 02:34:54 UTC  

Now. If you have a goal of 60/40 (stoks always supercedes bonds when people talk like that), and stocks run up, your assets may become valued such that your prior goal of a 60/40 portfolio is now 80/20 (via the big run up in stocks). So, REBALANCING is the term used to sell some stocks, while buying some bonds (in this example) such that your portfolio resembles your original 60/40 target. When to do this is controversial. Some funds constantly do it for you (quite neat actually). Otherwise, maybe every 1-2 yeasrs seems to be concensus amongst the vetted financial guys I will allow myself to listen to. You aren't so much as timing the market by rebalancing, but inherently, you are selling high (those stocks that ran up) while buying low (those bonds that have been lagging or going down).

2017-09-07 02:36:38 UTC  

Also, depending on the asset, and the SEC yield, you'll want to hold some things (REITS or High Yield Bonds) in tax "advantaged" accounts (like IRA, 401k, Cash balance accounts, HSA's) etc.

2017-09-07 02:37:40 UTC  

This is because they can return such high distributions that you will be taxed if in a regular brokerage (non-tax advantaged) accounts.....

2017-09-09 01:13:10 UTC  

Not sure if this is the best place for this, but I'm an accounting major, going to graduate college in May 2018. I have a GMAT exam scheduled in early november and after getting my results from that am going to apply to MBA programs. However, right now I have a few decent opportunities in terms of getting a job right after college for accounting firms as a staff accountant. I still have to actually apply and go thru the interview process and all that, but I am confident that if I do I can get in. My thing is that I will be graduating at 120 credit hours, and I will need 150 to qualify for a CPA (Can sit in on the exam at 120 tho). So I will need to go back to school for at least one year to become a CPA, and I don't want to get out of that 'academic mindset' by taking a break in between academics to work

2017-09-09 01:14:26 UTC  

financing the MBA / other masters programs is not a big issue for me. Would you recommend that I just focus on the GMAT and the MBA or should I start applying for jobs and start working right after undergrad?

2017-09-09 01:23:49 UTC  

@Deleted User This is a tough question, however, I understand exactly what you're saying. When I received by BS degree - I immediately went to work because I actually needed the money, and that was my need at that time and place. If I knew I'd by okay, then I would've continued on take the GMAT to enter a graduate program.

Speaking for myself, because I chose going to work - it DID demotivate me from continuing on for higher degrees. And I think it's that way for most people. Now, you may be able to find work that will allow you the flexibility to obtain an MBA. In conclusion, you may want to consider the GMAT as a primary focus because the information is fresh in your head AND you already have current study habits right now.....which tend to also be lost over a period of time away from schooling.