I would like to announce that I completed my first goal I set for 2013 and that was to reach 14% annual return rate. I am very happy about it, because with this rate of return, my investment will double every 5 years!
My other goals are going well too. It looks like I under-sized my goals and was too generous. But that is OK. If I meet all my goals prematurely I will adjust them for the rest of the year.
| I MET THIS GOAL ON MARCH 10, 2013 ANNUAL RATE OF RETURN 14.00% |
Since I met this goal early, the goal for the rest of the year will be to maintain this rate of return or increase it to 15% annually. And I want to maintain my winning strike of having no late or default notes while increasing my investments in Lending Club. Unlike some other investors who are dealing with “inevitable” defaults, I can manage my account without late notes and defaults.
I will continue depositing $225.00 a month to this account for another 5 months. That will complete my goal. Then I will redirect that cash to another goal.
On the following picture you can see the the status of my account.
Recommended websites:
- Lending Club Update – Compounding Income
- Lending Club Update #2 – 1500 Days to Freedom
- The Lending Club Experiment … Four Months Later – Mr. Money Mustache
@ Writing2reality:
I ran the XIRR calculation last night and came up with 13.21% return.
Look forward to seeing how things shake out after you pull the data out!
W2R, I will definitely post it!
Writing2reality, thanks for stopping by and dropping a word. I appreciate it.
I know about the flaws of LC’s calculations, but I didn’t dig into it deeper. I think it is calculating it based on the notes you hold and it is lagging. But I use it as a metric for comparison and my goals, not exact science.
I didn’t use XIRR since I do not have a record data available (I didn’t keep it separated) and I do not have time at this moment to dig it out from my account to be able to perform the calculation. However, I just used simple return of interest received and outstanding principal. It is not exact either, but gets me to 11% return so far.
Well, this gives me some idea to work on in the future, so I will post later on when I have the data out.
Nice progress and congratulations for reaching your goal!
Have you ever calculated your returns with the XIRR function in excel, or any other means of determining your real rate of return? Lending Club’s NAR calculation isn’t known to be the most reliable calculation as it doesn’t account for idle money, or gains and losses from the sale of notes.