I almost forgot to update you on my Lending Club account. I’ve been opening that up for all to see:
Last month, I had expected payments of $71.21 coming in. This month I have $74.47. A key word there is “expected.” It’s not a guarantee, but it is fairly diversified. Also, you may note that I have around 50 active tradeable notes with only 1 late. I should add that I didn’t put in any new money this month, I just reinvested payments from previous loans.
If you want to get started with Lending Club, they will start you up with $25 if you sign up through this link (full disclosure: I’m compensated as well).
Before you open a Lending Club account, I should mention that Lending Club notes are a very new type of security. There isn’t a long history of performance to rely on. As such, I would exercise caution with putting a large portion of your portfolio into Lending Club. Generally, I don’t think I’d put much more than 5% in it. I would use Lending Club as a way to diversify a portfolio. If stocks drop a lot as we saw earlier this year, the Lending Club portion could help stem the losses as it did for me last year.