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My Lending Club account liquidated

Today I finished liquidation of my Lending Club portfolio. I decided to keep 500 dollars in the account and just reinvest the proceeds. I will keep the account totally passive. I will not be adding more cash and withdrawing any cash until retirement.

At this moment I am playing with other people’s money. I received $2,765.06 in interest over the lifetime of my active management account. I left 500 dollars out of that interest in the Lending Club account to play with.

Lending Club

 
If I lose it, never mind, it was not my money anyway (sort of).

I will not be reporting this account in my reports on this blog regularly but either annually or semi-annually if at all.





6 responses to “My Lending Club account liquidated”

  1. I still haven’t been able to get in on the peer-to-peer lending unless I want to go on the secondary market. Which that just isn’t appealing to me. At least you were able to walk away with a good profit, looks like the return was pretty good at 16%+. Any other reason to leave LC or just that they no longer allow you to sell if the loans go into the grace period? I’ve heard a lot of people complaining about it being much more difficult to find quality loans due to the interest in P2P lending.

    • Martin says:

      That was the only reason that I stayed with LC that I could sell notes before they turned bad. When LC started seeing limited amount of notes available (at some point there were no notes to invest in) I was thinking to leave and the only thing which made me stay was that I still had an edge. Now this is gone and thus investing in LC is too risky for me and I do not want to commit too much money. I am staying, but only with $500 and a very passive approach to see how it will or will not work.

  2. Hi Martin,

    Any reason why you liquidated? Did you sell all your notes off in the secondary market?

    cheers,

    AA

    • Martin says:

      Well, I was using a watching system (some call it a glitch) which allowed me to sell the notes prior to them turning into a Grace Period as soon as I found out they were late in payment. Now LC doesn’t allow you to sell the notes when they go into processing time. Even if you want to sell a note and it doesn’t sell prior to entering the processing phase, your order will be cancelled automatically and you will have to wait 5 days before you will be allowed to re-enter your order again.

      It is like buying a stock and when you want to sell, the stock exchange won’t allow it, because the company didn’t report something or missed the next quarter or whatever reason. But at the stock market I can at least buy stocks which I do not care if the stock market closes and I cannot sell. Because as Buffett says buy stocks you want to own forever even when the stock markets shuts down for good. Unfortunately the consumer debt is not that sort of investment.

  3. FI Fighter says:

    Martin,

    What are you planning on doing with the liquidated funds?

    Are you taking your winnings to the casino? ;)

    • Martin says:

      Sort of :) I put everything into Wall Street casino :)
      I transferred everything to my ROTH IRA and taxable account. Some of the cash was our daughters cash for college so we started 529 accounts and transferred it in there.

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