Money System - What Are You Investing That's Getting 5% Return?

[rc08234]

What's to stop someone with a good credit score etc, from getting a loan from like mintos and loaning it out on prosper for a hire %?

 

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[Phones]

What's to stop someone with a good credit score etc, from getting a loan from like mintos and loaning it out on prosper for a hire %?

Would make more sense to get a student loan or something at reduced rate. Might be worthwhile for you guys in the US with ultra low rates. Just take into account having to pay it all if the P2P company goes to shit.

50k at 3-4% rates, lending at 13%, you can probably pay the principal just with the p2p loan interest, depending on the term.

 

[GlobalWealth]

What's to stop someone with a good credit score etc, from getting a loan from like mintos and loaning it out on prosper for a hire %?

Even better. A US person could get a loan from a traditional source with a good credit score and pay mid single digits interest, then open an account on mintos or twino and loan that cash out earning 12-15% interest.

You would earn the spread free and clear.

 

[Ikke]

Regarding getting a loan for investing purposes. My girlfriend loaned the maximum she could during her study and put it all in the bank. The loan has an interest rate of 0.12%/year (no typo) for at least 5 years which started after she graduated. Even though interest rates are very low in a savings account it still makes money.

I wish I did the same. Unfortunately my parents taught me otherwise.

 

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[eliquid]

That is a common fallacy. I have many clients with large sums sitting in their deposit accounts because they have no idea what to do with it.

If you think about it though it makes sense. They are successful because they know their business. They are focused on what works for them. Money management is not their area of expertise.

I recently had a client with a ecomm business and he had over $1mm in his checking account. He had no idea what to do about it.

This is sooooo true.

Many times a successful person hit its good and is so overwhelmed with the success, they just stick the money into a bank account until they can find time to learn how to best use it.

When I was starting, I was so busy trying to "run my business" and keep cash coming in, I had no time to even look at my bank account and consider what I needed to do with it other than stock pile it into savings. All that concerned me was that more money was coming in each month, than money coming out.

Then came Dec 31st and I was wishing I took the time to learn more about my money since the gov. got a large chunk of it after that day....

It's still hard to manage even after that. So many options change and numbers fluctuate every week. One month XYZ is doing good, the next month its a horrible investment because of something else.

Money management can be a 24/7/365 job if you let it. Key is, don't let it be.

 

[MTF]

Right now my P2P loans are 50% on Mintos and 50% on Twino (also with buyback guarantee). You should also check Twino @GlobalWealth , they are doing 14.9% on long term loans. The buyback guarantee is on them, but they are owned by a bigger financial group FinaBay which looks really solid.

I have 25% on 12+ month loans at 14.9% and 75% on 1 month term loans at 12.9% (this is "business money" so I need it liquid).

To the people that think this isn't fastlane, I'm living off the interest of part of my business cash reserves, I could have to be working 8+ hours / day to have that covered.

What's the % of your portfolio invested in P2P loans? I'm considering putting some money into it; just not sure percentage-wise how much (I stay away from the stock market, so P2P would probably become my primary more aggressive investment).

 

[Alext96]

Man who cares about a 5% return, I would invest it all back into my own business and earn 100% return or more. Besides who do you trust more, some random broker/company or yourself. If you invested it all in yourself and lost it all you have no one to blame but yourself, and this way you get to dictate about where the money goes and what it is used for.

Besides if you invest it back into the business(atleast in my country, you don't have to pay as much taxes)

 

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[Weaponize]

Man who cares about a 5% return, I would invest it all back into my own business and earn 100% return or more. Besides who do you trust more, some random broker/company or yourself. If you invested it all in yourself and lost it all you have no one to blame but yourself, and this way you get to dictate about where the money goes and what it is used for.

Besides if you invest it back into the business(atleast in my country, you don't have to pay as much taxes)

You're sort-of missing the point. The book (which this forum stems from) talks about it more detail (read it, or re-read it, whichever may be the case). At some point you've generated wealth from your own business, now you don't want the daily grind of running an existing, or starting a new business. Instead, you wish to invest it in the highest return, yet lowest possible risk way. That's what this thread is all about. A 5% return on your 10 million dollars is 500k/year. Most people can live comfortably on that

 

[Alext96]

You're sort-of missing the point. The book (which this forum stems from) talks about it more detail (read it, or re-read it, whichever may be the case). At some point you've generated wealth from your own business, now you don't want the daily grind of running an existing, or start a new business. Instead, you wish to invest it in the high return, yet lowest possible risk way. That's what this thread is all about. A 5% return on your 10 million dollars is 500k/year. Most people can live comfortably on that

Yes I got the point but that is already when you are rich and got a ton of money just sitting in the bank. You could just buy real estate and rent it out, you can look into that as a stream of passive income(I've not done this myself im too poor haha)

I also got a new idea, open a bar/restaurant

 

[Weaponize]

Yes I got the point but that is already when you are rich.

Hence the point of this thread

 

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[Alext96]

Hence the point of this thread

yes haha sorry

 

[Aaron W]

You could just buy real estate and rent it out.

I also got a new idea, open a bar/restaurant

Defeats the point of what op is getting at. He wants basically 100% passive return for his investment. Why waste your time (not that I'm saying its good or bad) in real estate or a bar/restaurant where you then have to people manage.

 

[Alext96]

Defeats the point of what op is getting at. He wants basically 100% passive return for his investment. Why waste your time (not that I'm saying its good or bad) in real estate or a bar/restaurant where you then have to people manage.

It's called outsourcing your business... you hire someone to manage them for you!

 

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[Aaron W]

It's called outsourcing your business... you hire someone to manage them for you!

But you still have to mange that person at the end of the day. I guess the same could be said for the investment as well.

 

[Alext96]

But you still have to mange that person at the end of the day. I guess the same could be said for the investment as well.

Good point I 100% agree, I think that's as passive as it gets

 

[Bobby-H]

For those investing in the EU P2P, what is the best country for a USA citizen to open an EU bank account in?

 

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[Deleted35442]

I've been looking at all the Vanguard ETFs and nothing gives around 5%, not the VIG or anything in dividends.

The only things giving 5% would be a really extremely risky bond for corporations or international bonds.

What are you investing in that gives 5% returns for your money system?

Vanguard is like the holy church of asset management. They're some of the more conservative ETFs. Oil will rebound. I'd long VelocityShares 3X Long Crude Oil ETN, ticker UWTI. This ETF triple leverages your position. Additionally, I see people here say get real estate....Does anyone actually want to be a landlord? Buy REITs. Add RSO specifically, yielded just under 15% with a low debt-to-equity ratio. If all this is still confusing, look into http://www.motifinvesting.com which is like a community investing platforms where you invest in "themes" which are industry-segregated bundles of stocks up to 30. Do any of this, and you'll be laughing. Due to all the talk of this, I think I'm going to write a thread on this and hope it's marked gold. Cheers.

P.S: No to P2P vs. a professionaly-managed REIT.

 

[Bobby-H]

Vanguard is like the holy church of asset management. They're some of the more conservative ETFs. Oil will rebound. I'd long VelocityShares 3X Long Crude Oil ETN, ticker UWTI. This ETF triple leverages your position. Additionally, I see people here say get real estate....Does anyone actually want to be a landlord? Buy REITs. Add RSO specifically, yielded just under 15% with a low debt-to-equity ratio. If all this is still confusing, look into http://www.motifinvesting.com which is like a community investing platforms where you invest in "themes" which are industry-segregated bundles of stocks up to 30. Do any of this, and you'll be laughing. Due to all the talk of this, I think I'm going to write a thread on this and hope it's marked gold. Cheers.

P.S: No to P2P vs. a professionaly-managed REIT.

RSO - Wow at that 22.22% Dividend even though it's low compared to before in terms of stock value, 22% is amazing. Motifinvesting looks amazing. I really look forward to your thread Cyriex, please reply to this thread with a link to it when you post it!

By "long" do you mean to just buy some shares UWTI? Going from 600 to where it is now is pretty big swing.

Where do you go to look at those REIT's with amazing dividends?

Thanks Cyriex.

 

[Phones]

What's the % of your portfolio invested in P2P loans? I'm considering putting some money into it; just not sure percentage-wise how much (I stay away from the stock market, so P2P would probably become my primary more aggressive investment).

Like I have stated above, the major chunk of it is working capital for the business.

But overall it's around 50%-60%. For larger sums (>50k€) I would probably try to find other P2P platforms in the USA or UK to minimize the risk of the eastern european economy (where most of these platforms are from).

I would also set some small % apart for ultra-high risky loans, BTCJam and other Bitcoin lending platforms, they are maturing and from the test investments I tested the default rate isn't as high as youd expect with bitcoin, and the returns can be really high, there are people in Brazil paying nearly 15% MONTHLY and are coming to these platforms to find better alternatives. Anyway, these would be money you should consider "lost" because it's a very risky option, but the option is still there and the returns are really good even when defaults are taken out.

I'm pulling out the 50% I have on Mintos this month, will need the money soon and almost all 1 month loans get stuck for 2 months until they buy them out (which isn't that bad, since they are still paying interest, but bad for liquidity).

Will keep using Twino, 50% long term 2 year loans and 50% 1 month loans.

 

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[MTF]

@Phones - thank you! Rep transferred.

I can't understand how Bitcoin works AT ALL, so I stay away from it just like I stay away from the stock market and anything else I don't understand or that feels like gambling. But perhaps it would be a fun idea to set aside a small % to invest in these high-risk high-reward (10% monthly, what the hell) Bitcoin-related things.

I'm not sure how to pay taxes for it, though. It's not like any central bank publishes Bitcoin conversion rates lol (and I would need to convert it to my local currency to calculate capital gains taxes to pay). Any ideas? What do they mean by "This listing has its amount linked to the Bitcoin exchange rate for CoindeskBRL"?

I'm pulling out the 50% I have on Mintos this month, will need the money soon and almost all 1 month loans get stuck for 2 months until they buy them out (which isn't that bad, since they are still paying interest, but bad for liquidity).

Will keep using Twino, 50% long term 2 year loans and 50% 1 month loans.

Does it mean you no longer recommend Mintos? I wanted to go mostly with 1-month loans (I want to stay liquid) and split them between Twino and Mintos. But if you're saying almost all 1 month loans are delayed then I'd rather go with Twino only and diversify with other non Eastern European platforms later.

 

[wholehog]

I've been looking at all the Vanguard ETFs and nothing gives around 5%, not the VIG or anything in dividends.

The only things giving 5% would be a really extremely risky bond for corporations or international bonds.

What are you investing in that gives 5% returns for your money system?

S&P500 Index Funds with Vanguard. Beats 90% of Hedge funds and robber mutual funds. No brainer for me at least. Half there and half in Real Estate.

 

[Jake]

It's not like any central bank publishes Bitcoin conversion rates lol

[url]http://www.xe.com/currency/xbt-bitcoin[/url] close enough

 

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[MTF]

[url]http://www.xe.com/currency/xbt-bitcoin[/url] close enough

For tax purposes, I need to use the official exchange rate of the central bank in my country. No Bitcoin there.

 

[napier]

Vanguard is like the holy church of asset management. They're some of the more conservative ETFs. Oil will rebound. I'd long VelocityShares 3X Long Crude Oil ETN, ticker UWTI. This ETF triple leverages your position. Additionally, I see people here say get real estate....Does anyone actually want to be a landlord? Buy REITs. Add RSO specifically, yielded just under 15% with a low debt-to-equity ratio. If all this is still confusing, look into http://www.motifinvesting.com which is like a community investing platforms where you invest in "themes" which are industry-segregated bundles of stocks up to 30. Do any of this, and you'll be laughing. Due to all the talk of this, I think I'm going to write a thread on this and hope it's marked gold. Cheers.

P.S: No to P2P vs. a professionaly-managed REIT.

Wow, if oil ever booms again there is a possibility to make a killing with UWTI.

 

[MJ DeMarco]

Wow at that 22.22% Dividend even though it's low compared to before in terms of stock value, 22% is amazing.

When LINN Energy was trading at 12 bucks, it also had a 22% dividend. Now it has a ZERO dividend and is trading at two bucks. In other words, a stock with an advertised 22% dividend is advertising for suckers who'd rather not visit the casino.

Here's a recent article that highlights some stocks with 5% dividends. In this list, I'd be favored toward the commodity movers and utilities.

http://www.fool.com/investing/gener...s-yielding-5-or-more-do-exist-here-are-5.aspx

 

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[Andrewski]

In canada p2p loans are finally becoming legal. I use lending loop, pm me for a referral code. My asset mix is about 65% rental properties, 15% lending loop, 20% cash.

 

[Mineralogic]

It's called outsourcing your business... you hire someone to manage them for you!

HR SYSTEMS is a valid money tree

 

[Mineralogic]

When LINN Energy was trading at 12 bucks, it also had a 22% dividend. Now it has a ZERO dividend and is trading at two bucks. In other words, a stock with an advertised 22% dividend is advertising for suckers who'd rather not visit the casino.

Here's a recent article that highlights some stocks with 5% dividends. In this list, I'd be favored toward the commodity movers and utilities.

http://www.fool.com/investing/gener...s-yielding-5-or-more-do-exist-here-are-5.aspx

kinda of like growth stocks they pump at 30-100 PE based on current trending earnings when in reality in a real recession their earnings would crash 50%

wall st never talks about how the E is rarely secular growth story in order to justify high P/E ratio

 

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[Phones]

@MTF Twino has better rates on 1 month loans and up to 14.9 on 24 months (all with buyback), which Mintos doesn't.

So, depending on how what terms you want to invest, and what amounts, diversifying with Mintos may be a good option (doesn't make sence do diversify 1k€, but >10k€ is probably worth it).

My only reason to withdraw from Mintos is that this was my main platform for short term loans (on twino I have 50% long term, 50% short term), and since I will need the cash, I'm pulling from Mintos.

It's worth saying that Twino also has delayed loans, but much less than Mintos (and I think they have now reduced the buyback to 30 days, but I'm not sure on that now)

 

[Phones]

VelocityShares 3X Long Crude Oil ETN, ticker UWTI

I was looking at this some days ago, I think Oil will still go down near 35$, depending on OPEC moves, I'm thinking of loading 5k€ into this if it reaches that point and letting it ride, the probabilty of getting Oil at 20-30$ is very very low, and I'd say it's logisticaly impossible to go <15$

I still have to do some more research on leveraged ETF's, I want to fully understand where I'm putting my money on, do you have any good readings you recommend @Cyriex ?