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During the month of June, my investment accounts generated $320.85.

This is not a record month but it appears $300+ will be the new normal. Keeping that in perspective that equates to $10.69 per day.

Securities Investments:

I deployed $2,428.71  by purchasing the following securities for free through Robinhood.com (click on this link for one free share when you will sign up):  MMM, EMN, VT, LYB, BSV, PFE, IRM, JPM, PG, GEO, NLY, KO, PEP, HON, GLDI, ENB, WMT, PDI, AFL, GLD, KEY, and VPU. I mostly buy one share at a time.

My account value as of June 30, 2019, is $41,011.21. Thus, in June I surpassed my account goal of $39,687.52 by December 31, 2019.

Mr. Market was great in June and the change of value in my investments was $2,246.22.

Cash Deployment Chart:

The $2,428.71 of cash deployment reflects 5.9% of the total account value. I won’t be investing as much for the rest of the year because I don’t have that much money left over for normal monthly expenses, house insurance, real estate taxes, and RV rental.

I want to however disclose to the world that I am saving 100% of my salary right now to retirement plans and my wife about 55% of her salary. We have been doing this for the last couple of years. Right now, we can live up to about August. After, August we have to replenish our accounts with salaries.

We will know that we can easily retire if I can go the entire year plus without drawing income from work.   Hopefully, that year will be 2020. Time will show.

Options:

I still have VOO and GLD options and it looks like I will lose $35.00 on the VOO worthless option. I am not an expert on options at all but $35.00 lesson for me is that I need to either stay away from them or take some real classes. The latter option is better for me. I think, there is a place in my portfolio in the future for option exposure but I just need to learn them some more.

GLD does not expire until January of 2020 so will see how this will turn out.

Dividend Income Summary Table:

The June $138.77 dividend income was the best dividend income since I started in January 2017 and 2.06 times more than in 2018.

Passive Income Summary:

Everything looks good with the exception of Lending Club. I am going to give Lending Club until the end of August of 2019 to see if it will start growing again. If not, I will stop investing and move everything somewhere else.

So far in 2019, I have derived $1,676.16 from interest and dividends. Honestly, I can’t wait until I can get above $10,000.00.

We did rent out an RV and had an awesome time.

The post June 2019 – Passive Income Update appeared first on Mr.Frugality.

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Investment Platforms Summary:

I invest in the following investment platforms. 

Breakdown of my investments:

Pie chart of investment allocation by investment platform.

Allocation of Investments:

I am holding 37.6% of cash in the Capital One savings account earning a sweet 1.75%. I will deploy some amounts here and there during this quarter. However, if a nice correction will occur, a significant portion will be deployed. Detailed amounts of each investment can be viewed at other blog posts. Top three investments: 1. Cash – Capital One, 2. Peerstreet – hard money lending, and 3. Robinhood – equities, funds, and mutual funds. I just started with groundfloor.us. I will show mu results next quarter. 

Annualized Return on investment.

Return on Investments:

Each investment is doing as expected an annualized basis except for Prosper.com. Thus, I will no longer deploy any amounts to prosper until I will figure out exactly what causes the poor performance. I will perform a full analysis of Prosper.com at a later time. I don’t have favorite investment, my only goal is not to lose my principal of investment after adjusting for inflation and make a few percentages on top of that. Any passive investment of 5% to 8% percent on an annual basis is excellent for me.

Other items to consider while reviewing the information above:

  • RobinHood and Vanguard Represent represents dividend income and not any actual gains on assets.
  •  Capital One is cash holdings.
  • Peerstreet and Fundrise are loans on properties aka hard money lending.
  • Streetshares is receivables lending.

Thanks for reading. 

The post 2Q2018 Investment Update – Passive Sources. appeared first on Mr.Frugality.

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Purchasing the fat tire e-bike was a great and fruitful decision for me. A beauty about a good decision is the same as a bad decision, you get reminded every single time and you try to forget the bad one quickly. This bike provides me with a huge satisfaction and excellent dividend yield (aka return on investment which you will see below why). 

The bike that I ride is Cyrusher Fat Tire Bike – Extrbici XF660 – Here is the link.  I am not getting paid nor for referring the bike to the world. Quite frankly it does not matter to me. I treat this blog as my personal notebook so the information is never lost and I can reference it back in the future. I also want my children to know precisely what an excellent father I am. I want them to have a clear written record so they can use it as a reference.

Biking in the winter:

I have now completely different and positive perspective of winter. I see beautiful trees covered with snow and it makes me happy. Riding in the winter is very quiet and peaceful as if the world has fallen asleep. I enjoy the sound of my fat tires breaking the frozen snow. Today, I went very slow to work to take-in the beauty of winter.  All other days, I go as fast as I can because I like to get a good morning and afternoon workout. One other huge benefit of not using my car, I don’t have crazy driver’s cutting me off because they are rushing to get somewhere. 

Distance Traveled and 2018 goal:

In 2017, I traveled 1,429 miles, which makes me proud of this achievement. At first thought, it does not seem like a long distance but for me, it is a lot. But I am not competing against anyone. So, I am superbly proud of this achievement.

On a monthly basis, I travel between 121 miles to 233 miles, which projecting for 2018 would put me between 1,452 and 2,796 miles. It would be sweet if I could do 3,000 miles per year on the bike.  So, there, I  just have decided that my goal for 2018 will be to travel 3,000 miles on my bicycle 

History of riding my bike. The green part was when I went running while in Arizona.

Savings Money Aspect:

So far, I have saved $2,106.44 for not using my car to commute to work. The total amount saved includes $40.00 per month less insurance coverage, $30.00 per month garage fee, and $1.73 fuel saving per working day. Since July of 2017, not only I paid off my bike but I also was not forced to spend several hundred dollars pouring fuel into my gas tank.  We have two cars and I have been thinking that at some point I should sell my other car because I don’t need it anymore. I am going to wait little longer to ensure that I am going to make the right decision.

Issues with the e-fat bike:

Answer: None. I have no issues with the bike what so ever. The bike is a workhorse. I use it for the intended purpose and I ride it hard.  The electric motor works perfectly fine, and battery holds its charge for a long time. I have one hundred percent confidence in my bike. 

Final thoughts:

I will continue to ride my bike probably for the rest of my life. When we move to a different place in the future, I will be sure that our new home is located somewhere within 12 – a 15-mile range of things that I need to do.

I encourage every one of you to start riding. I feel strong and agile. I ride because I want to be healthy and stay healthy. Don’t get fat!

The post E-Fat Bike Update – Going Strong appeared first on Mr.Frugality.

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We own a 2008 6 cylinder Mercedes-Benz E-Class sports package. I purchased this car few years ago from a friend. He was moving out of the country and need it to sell it quickly with only 38,000 miles on it. Now it has only 56,000 miles.

I paid for it nearly 50% less than what it was the true value. I knew the car was in great shape and that was sitting his garage for the last 3 years.

We don’t drive it in the winter at all. This car is used only in the summertime.

We really need one car, but it is hard to give up a luxury vehicle when there is still equity in it. As you know, I commute on my fat tire e-bike.

However, I have noticed that every time my wife gets into the car, she always starts the car first then adjusts: seat or seats, steering wheel, turns on the radio, helps our kids to buckle up, so about 3 to 5 minutes later, she is ready to drive.

I was like wait a minute. This procedure is a complete waste of our money, so I asked her if she could simply reverse the order of things she does while preparing to drive. I asked why don’t you do everything that you need to do to get your ready for driving first, and then once you are 100% ready start the car and drive.

She said to me, I never thought about it this way, this is a good idea. Well, I am glad that she took my advice. -:)

After a few weeks of doing the reverse procedure, she stated in a passing comment. The tank in the car stays full longer. I was glad this new methodology is working.
Quick analysis for encouragement:

A 6-cylinder car consumes about at best 1/5 gallons of fuel per hour. My wife idled the car on conservative side 10 minutes a week that comes out about 8.50 hours a year. Thus, she was accidentally wasting about 13 gallons of fuel per year, which is about $39. This is not a lot of money, but this $39 will be put to better use from now on.

Of course, I would prefer not to have the car but for now, we are keeping it. We don’t have any loans on it. We turn off the insurance on this car in the winter. We drive very carefully so we don’t break anything.

However, our next daily car will be a used electric car. We don’t drive a lot, but with a family of 4 like ours, it is not practical to rides bikes everywhere.

Oh, BTW an estimated cost of keeping our car for 10 years is about $20,000 versus $5,000 is for electric. Owning an electric car for everyday driving around town is a no brainer.

Hopefully, you can save $39 per year as well. Lastly, isn’t it ironic how things seem to work out better many times when we do things in the completely opposite way!

Thanks for reading..

The post Buckle up first and then start a car. appeared first on Mr.Frugality.

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Total April 2019 dividend income from my brokerage account at Robinhood (click on this link for a free share.) was $75.91. This income was 4.46 times more than in 2018 and 176.53 times more than in 2017. In 2017 my dividend income was only $.43. It definitely feels good that I am getting up to real numbers.

I deployed $4,141.85 in April. I expect to earn an additional $133.78 per year for the rest of my life. Current overall yield is 3.28%. I have an overall 100 positions in the portfolio. The total number of different purchases in April was 48. Thanks to Robinhood, I didn’t have to pay $237.60 in fees at $4.95 a purchase.

My goal is to double my account value at Robinhood by the end of 2019 to $39,687.52. I am only $5,608.52 away from that goal and it is only May. I like to keep my goals reasonable to give me positive energy in life.

Since January 27, 2017, my overall gain is $2,642.68 or 8.34%. No complaints there since we are basically closer to the end than the beginning of a business cycle.
Options Front:

My gold call and VOO put options pretty much stay the same in value. gold do not expire until the beginning of 2020 and VOO expires in July of 2019. My exposure is super duper small more or less than 1%. I keep them as an insurance policy and will execute them in case the market dives down to protect somewhat the corpus of the fund.

I have never done options but I read somewhere that it is a good idea to buy insurance policies for a portfolio. Basically, I am looking for something that has very little or no correlation to equities. This is a good opportunity to learn. I will definitely put up a post on my learning experience.

I am holding right now 8.39% in Treasuries and short-term bonds. I will deploy all of the money the moment a market goes down a lot. I will probably put all in VOO, VT, VTI, and NOBL.
Cash Deployment Chart:

This chart definitively shows that I am deploying lots of cash and the gain is very little. In short-term, this is a big deal but in long-term (aka 30 years) makes no difference. Of course, I would want the red part to be larger but that is not happening right now.

One thing is certain. I am deploying my excess cash that otherwise would be sitting in a savings account and banks would be making tons of money instead of me.
Dividend Income Summary Table:

This is my main motivator. Please keep in mind that I holding over 100 different positions and I try to stay below 5% exposure in each one holding.
Passive Income Summary:

In April 2019, I passively made $290.96 ($9.69 per day). This is almost of in line of $300.00 that I want to earn currently. Peerstreet.com rebounded nicely. Groundfloor.us is doing well. I would want Groundfloor to be more but I know that lots of the investments that I made pay at the end of the term. So, I have to be patient. Prosper, I am closing down the account and all payments made are going towards Groundfloor. I am also putting Peerstreet interest earnings from PeerStreet to work in Groundfloor account. I do this because Groundfloor has $10 investment minimum while Peerstreet has a $1,000 investment minimum.

All the others are good. The CapitalOne account is a cash cushion that I like to keep. In the event of a major market downturn. I will deploy that money as well.

Dear readers. I will eventually write a post regarding the Airbnb/VRBO that I started in Scottsdale Arizona. The results are awesome and I know that this is an excellent investment for us.

BTW, we don’t have a mortgage or car loans.

Thanks for reading.

The post April 2019 Passive Income Update appeared first on Mr.Frugality.

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Total March 2019 dividend Income was $104.57. This was 2.02 times more than March of 2018 and 65 times more than my first dividend income in March of 2017. So, in just 24 months I am going to make at least $100.00 a quarter.

I think this is pretty neat considering that all I am doing is putting an average of $900 plus per month of extra money in good or excellent companies or funds.

As of March, my Robinhood.com (click on this link to get a free share. I get one as well) account value is $29,373.84. My estimated income for the year is $993.91, thus my yield is 3.38%.

Since January 27, 2017, when I began to invest my overall gain is 9.89% or $2,879.80 and I collected $813.78 in total from my dividends. I reinvested all of it, of course. However, I will sometimes this year take the dividend earned and take my family out to movies with some popcorn. This will be specifically thanks to me for delaying my gratification to ensure that we have a bright future ahead.

Options.

My gold call options and VOO put options both decreased in value. I purchased those options as an insurance policy just in case Mr. Market will have a big drop. Also, this is a very good signal to me that the market is going to be doing very well for a while.

My gold options do not expire until January of 2020 and VOO do not expire until July of 2019. I think I am going to lose money on them and I am okay with that. My purpose of those options was a hedge against huge market drops.

Deployment of Money Chart

This chart really speaks to me. My initial investments show very little return. However and after December of 2018 dip. I deployed, even more, more money. The returns are increasing and that little bright green line is a tiny fat called dividend income.

My current strategy is to invest my excess cash to equities but I have been also buying gold ETFs, short term bonds, and TIPS. I want to be ready to deploy the accumulated conservative investments when the market will bottom out. As much as I want to get a lot of dividend income, I want to conserve as much as I can my value of the portfolio.

Thus, while investing nearly every day in equities, I make sure to put some money into non-correlated positions.

Passive Income Summary:

In March of 2019, I made passively $183.69, I was hoping more like $300 similar to January of 2019 and December of 2019. I don’t have the data post it from previous months but $183.69 is not a good overall result. That said, this is likely going to be the worst month of the year and from this point on my passive investments will perform better.

Robinhood was the best performer in March of 2019. I am not sure why Lending Club is performing so poorly. I will give it a couple more months and otherwise will work on closing my peer to peer lending adventure down. I do hope that Lending Club can recover because I like to have a solid 5% returns on an annual basis. I am looking forward to the Ground Floor to start paying larger amounts. Peerstreet was disappointing as well as after many months of solid returns. Since October of 2016 Peerstreet has paid me $2,861.03 in interest income.

That’s it for today. I will write soon about my investment in Airbnb/VRBO in Scottdale Arizona. To give you a little hint. Great results so far.

The post March 2019 Passive Income Update appeared first on Mr.Frugality.

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Equities Investments:

Total dividend income in February was $40.60. This is 2.67 times more than February of 2018. These are pretty great results. So far this year, I have passively earned $55.78. My account value increased by $3,157.36. The increase is attributed in the following ways,  I deposited $1,344.37 of my own cash and the rest of $1,812.99 is the account value change. I will double my account value by the end of this year to $47,708.

In March, I expect dividend income to be above $110.00. I think this is a pretty good feeling to say that I will get something that I didn’t earn by simply having faith in the investments. Since the market, is running full steam and the end is on the horizon in the less than 24 months. I have some put option positions outstanding that have a very long time horizon. I treat them as insurance policies against my account value decrease. If in March the put options will provide a huge return, I will liquidate them but otherwise, I will let me expire with loss of maybe $125.00 in the worst case scenario. Please note that some of the positions won’t expire until January of 2020 so there will be plenty of to provide a cushion for market fluctuations.  The put positions account for only .463% of my account value and 17% of last year dividend income. 17% is high as compared to income. Next time for the future, I will keep it under 10%.

Passive Income Summary:

My passive income investment for February of 2019 was $147.93. I am liquidating Prosper investment and putting the remaining amounts in Groundfloor. This is the first time since I have invested money in  Lending Club lost money. If this trend will continue in the next three months, I will also liquidate the money and put it to work somewhere else. However, I believe this to be an anomaly. Since, my initial investment in December of 2014, I never had a negative interest income month.  Otherwise, everything else looks pretty normal.

The post March 2019 Passive Income Update appeared first on Mr.Frugality.

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Reading time: 3 minutes.

Referral link: If after reading this post you decide to become an Airbnb host. Please follow this link. Each one of us will get a $100.00 bonus. This is a big bonus considering that I don’t make any money writing this blog. Thanks for your support.

Airbnb Goal:

I always try to optimize my life in order to create more passive income. Any active income is then invested in other passive activities so the money can have the opportunity to last forever.

By the way forever for me is about 42 years (15,000 plus days). Thus, in reality, nothing is forever because everything has an ending, which is a good thing. Having a finite ending gives me an opportunity to strive for success because time is limited and I will eventually die. Dying for me is just like any other stage in life and I am not too concerned about it. Getting back to Airbnb experiment.

Airbnb Adventure:

We have used Airbnb during our vacations and have enjoyed our time being guests in other people’s homes instead of hotel rooms including super high-end ones. Sleeping in separate beds in separate rooms for us is one of the keys to having a good vacation experience. Being crammed in a one hotel room or a large suite is just not fun anymore. Not to mention that while staying in Airbnb allows us to have access to laundry, kitchen, and many other similar amenities that a family needs.

After having an excellent experience of being a guest in someone’s else’s home. I always had in the back of my mind that it would be rather interesting to become a host myself. After all, we have a large daylight basement available that is hardly being used.

Earlier this year my wife was planning to visit her parents with our children out of state. I thought it would be a great time while they are gone to rent out on a short-term basis our newly remodeled and barely used basement on Airbnb.  The conversion to an impromptu hotel would not be hard or expensive. 

Costs to prepare the extra space:

In May,  I started to look on Craigslist for various items such as bedframe, small desk, vanity, chair, and etc. Our basement didn’t have a kitchen, so I decided to build a kitchenette. I have never build a kitchenette before. Not a problem, I will just learn as I go.  Here is the picture of my final product. It was an easy build and it didn’t take long at all.

    Our kitchenette on Airbnb

Here is the rest of the stuff that I bought mostly from Craigslist and few things from boxed stores.

Itemized list of items purchased in order to prepare our basement for guests.

Listing on Airbnb.com

I knew in May that we will have an empty house and an empty basement for 3 weeks in August. So, I decided to list our unit with only one picture because I had only one bedroom finished. To my surprise a few days later one confirmed booking came through and nothing was ready except for the one bedroom.  Next several weeks in the evenings and weekends, I worked diligently on the basement and uploaded pictures of areas as there were being completed. The original booking canceled, which was okay with me because I got more bookings already. 

Sometime in June, I accidentally stumbled on BeyondPricing.com. This company is pretty neat and I believe they are far better than Airbnb.com currently has to offer as it relates to dynamic pricing. As soon as the minimum and maximum price was set by me Beyond Pricing took over. Again to my surprise, price variance based on demand and occupancy fluctuated daily from $70.00 to $120.00 a night sometimes with even $.50 increments. There is no way that any individual including myself would be able to manually and accurately predict market supply and demand curves. 

August Hosting Results: Spectacular!!!!

Success will happen as long as you will capitalize on an opportunity. Moral to a story: Just try and you will eventually succeed. 

Airbnb Results

While my family was gone, we earned $1,473.43 from an empty space. We never earned less than our $70.00 minimum and couple of times we were close to $120.00 per night. These results are spectacular. You might quickly calculate that our net earnings were $247.08, which is accurate, but there is more money than basic math showed here. 

The new kitchenette is an improvement to the house which will cause the value of the house to increase. The items that I bought from craigslist I could easily sell back and get my money back.  I learned how to be a host.

These are spectacular results. Airbnb gave us an opportunity and we simply capitalized on it for a brief time. Our occupancy was nearly 100% and it was neat to meet people from around the world. 

Future Plans:

From now on we will always rent out our basement during the time we are not at home.

Investment of Earnings:

This is where I invested my money:

Robinhood.com:

  1. JPMF –  2 shares –  $48.70, yield – 5.84%
  2. ABR – 2 shares – $24.22, yield – 8.31%
  3. AFL – 1 share – $47.00, yield – 1.98%
  4. VT – 1 share – $76.47, yield  – 2.26%
  5. GLDI – 1 share  – $8.22 – 6.25%

Total investment: $204.61 with the expected yield 4.93%, which comes up to $10.08 on annual basis. The yield is unusually high so I purchased some shares that are should have a low correlation to the market when it corrects.

Groundfloor.us

Total investments: $590.00 at an average interest rate of 11.23%. I expect to earn $66.26 per year.

I still have $678.82 to invest. I will likely purchase one new queen size mattress and look for other investment opportunities. 

Thanks for reading. 

The post Airbnb Host – Great Results – Life Optimization appeared first on Mr.Frugality.

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Reading time: 5 minutes.

Let me first start with a referral link. If I am the one that convinced you to open an account with Lending Club, please support me by following this link. I get a bonus, which is good because I don’t make any money at this. Please note that this blog post is my analysis for information purposes only. Your results might be different, hopefully, better. 

I have two separate accounts with Lending Club. The first account I opened in December of 2014. The second account  I opened in October of 2015 and it is dedicated for our children (We retain the control just in case.).

My overall investment strategy:

  1. First Rule – Never lose any money, and Second Rule – Don’t Forget about the first rule. Thanks – Warren Buffet.
  2. Very conservative loan criteria.  
  3. All of the previous year’s interest income earned not accounting for losses due to write-offs is withdrawn. Distribution takes place annually around October. The money is further invested in various Vanguard funds directly at Vanguard.com or I spend it on whatever I want. I follow the same rule for kids accounts except that all interest income is deposited for further investment at Vanguard. This way I systematically pull out the money and send it over to a different marketplace for compounding to start working again. The goal is to always have money make more money at different places. However, in few years when my kids are old enough, I will let them spend all of the earnings from Vanguard on whatever they want. I want them to learn delayed gratification and this will be good practice. 

Data/Account History:

As of the writing of this post, I have accumulated 41 months worth of personal data, which is good enough to get a decent picture of what is going on with income, losses, account value, and my overall micro-investor experience. I do realize that we didn’t hit a recession/slowdown in the overall economy just yet. Frankly, I am not concerned if the recession will happen, mostly because of my very conservative investment criteria.

Background Information:

I started super slow with an initial investment of $600.00 (December 5, 2014). In the subsequent period’s my investment was increased to the total amount of $4,250.00 for my personal account. My kids’ investment account, we funded their account fast, to a total amount of $5,287.42 (October 31, 2015). This was done mostly due to my good experience with the first account. The grand total investment in two accounts was $9,537.42. 

Distribution history: 

Personal Account – 2015 – $128.77, 2016 – $272.69, 2017 – $293.69, 2018 (So far earned interest – $150.93, projected 2018 $301.86). Total distribution including accumulated distribution up to June of 2018 – $846.08. 

Kids Account – 2015 – $42.44, 2016 – $337.74, 2017 – $505.51, 2018 (So far earned interest – $243.75, projected 2018 $487.50).  Total distribution including accumulated distribution up to June of 2018 – $1.129.44. 

I say these are pretty damn good results because of only $4,250.00 invested withdrawn earnings $846.00 and similar $5,287.42 and withdrawn $1,129.00. Cheers.

Results – Account Standings:

Return on investment and account value of personal account Return on investment and account value of kids account.

As you can see the accounts are doing well. Recap – Initial Investment $9,537.42, Current Account Value after distributions of a total of $1,580.84 is $10,005.27. They are slightly higher ($467.85 or 4.9%). The annualized returns are decent as well 5.31% and 5.52%. I expect the returns to be around this level for a very long time, if not better. I doubt very much I will ever get below 4.00%, which of course would be unacceptable. 

Investment Strategy:

For my personal account, I have set up a dozen general filters and within those filters, I have many more specific limitations. I won’t reveal my filters at this time because I have spent lots of time and energy on getting them just right, however, I might sell them if someone wants to buy them. For that reason, my deployment of cash is very slow. My limited criteria causes probably only to invest in .01% of total loans offered.

For my kids I use LendingRobot.com. Click on this link to get free $10,000.00 worth of funds management. My kid’s account is doing slightly better than I am but the variance of 0.21% of annualized return on investment is immaterial to worry about. 

I did that mainly to see which account will do better. I will do another analysis in a couple of years again to ensure that everything is on track. 

Analysis of account value after distributions, moving average of interest income, and moving average of loan losses. 

The basic premise of this analysis was to see how is my account doing after distributions? Basic answer: Good.

Here is a detailed analysis that I performed on my account that convinced me that in the near future I will invest more money. Again, I am looking for modest long-term results. 

Account Value Trend:

Account value of personal account over 41 months.

The long bolded vertical lines in this graph indicate distributions. It is nice to see that even though the interest was earned from January through December of the previous year and there is some compounding effect through October. Note that the overall account value has recovered nicely. The last part of the graph shows a spike, this is due to my recent $800.00 investment. 

Monthly – 3-Month Moving Averages Income and 3-month Moving Averages Losses:

The basic questions that I wanted to answer:

  1. Are my losses rising? Was there a peak?
  2. What is my average monthly interest income?
  3. I also wanted to see what are my moving averages as it relates to income and loss on defaulted loans?
Graph showing 3-month moving average of interest income as well as a 3-month moving average of losses on defaulted loans.

 I am glad that right around month 25 my losses peaked and average income has very little gyrations after a nice climb. Everything looks good here as well. 

Accounting for losses:

I would have loved to have zero losses, but that is simply not a reality in any investment. I don’t get hang up on modest losses too much mainly because IRS allows me to write them off up to $3,000.00 per year. So, I indirectly recover a portion of those losses by paying less income tax.

Final Word:

I feel confident that in time I will take out my entire micro-investment while still have an equivalent amount left over. Lending Club is going nowhere, plus since going public there are doing a very good job even after various drama. I like their comprehensive quarterly email that tells me roughly what is going on in the marketplace. 

I don’t believe what is commonly called “aggressive investment strategy”. I believe in being “assertive” but not aggressive.  Mainly because it is implied that by being aggressive, I will overlook a critical part that will create losses. Aggressive investment implies fast and there is nothing fast in ensuring that I will keep what I have. 

I have many micro-investments in various investment platforms. I will write about them as this blog develops and takes on life on its own. Money should be always working because either you are adding or subtracting from it. Having money invested somewhere is a good way to live because you create multiple streams of income that eventually will eclipse other income sources. Too much money sitting around and doing nothing other than being slowly eaten up by inflation is a poor habit. I have extra money laying around, so why not send it to someone that is willing to pay for it through interest.

Is peer to peer lending safe? Yes, but one must be conservative.

Hourly wage perspective:

How much do I make per hour doing this? Not much maybe three hours on a quarterly basis. So, 846 divided by 3 equals $282.00 per hour. That’s pretty damn good, now I need to turn this to 2,000 hours per year -:).

Question to readers: What is your thought on my analysis? Are you successful in peer to peer lending?

Thanks for reading, Mr.Frugality

The post Lending Club – Long Term Investment Review and Update appeared first on Mr.Frugality.

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