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Sachin - Aug 12, 2010, 7:29p
You spend a lot of time doing all this analysis. I'd just let a financial advisor take care of it. Or just stick it in a CD and save myself the headaches and stress.

Or if I want to help people who can't get loans, I'd just give money to Kiva (I do).


nikhil - Aug 14, 2010, 6:58a
I've worked with several financial advisors, and none of the ones I've met do any of this. Maybe I haven't met the right person yet, but I've looked. Most haven't even heard of Lending Club.

CDs don't get anywhere near this level of return (assuming this pans out as hoped) - the highest rate on bankrate.com is 2.4% for a 3-yr CD (compare to 6% I'm hoping on Lending Club). Of course, this makes sense - Lending Club is riskier, takes more work than a 3-yr CD, and doesn't have the FDIC insurance).

Also, I want to help people AND get a good return, so Kiva isn't the right place for me.

Finally, I actually find doing this analysis fun :) I have a question that pops into my mind, and I answer it. Very satisfying (just like engineering can be). And it only took me 1 day, so not much time at all :) The previous SVM post did take me quite a bit longer, though, but I was learning the whole way through.


Connie - Aug 14, 2010, 4:45p
Good to see you and B last week :) I came to your website to see how you're faring on Day 21, and here you are ranting about Lending Club again, haha. Anyway, the other site I was telling you about is microplace.com. My preference over Kiva. Microplace used to have more investments for 3%+ (and yes, I've been getting my funds back, no defaults yet after 3 years) so take a look and see if it works for you. Um, no insurance there either.

I would guess that financial advisors would prefer that you either invest in stocks or in mutual funds or other financial instruments as they get to make some money off the transaction. And the back analysis is usually done by someone else. Lending Club = no kickback + too small to be worth it for really rich people.

Two more things on the survival diet front. First, women's diets sometimes go all the way down to 1200 calories - just was reading about a few of the popular diets in a women's mag. Liquid diets are the rage. Also, there are lots of people fasting for Ramadan right now, which apparently may or may not work that well as there are giant parties every night where you (can) gorge yourself silly. Ah, the things we do for religion.

Write again and let us know how you're doing.


Barbara - Aug 23, 2010, 5:04p
Although I am sure that your analysis has merit, it presumes that an investor invests equally in all loans. I believe that my strategy for investing in LC loans serves to increase return and lower risk for me personally, as opposed to all loans overall. There are many factors that I take into consideration when I evaluate which loans to back but I will give you a very easy example - I never invest in small business loans (even at a min. buy-in of $25, who invests in a small business w/o even seeing the business plan?) Also, I rarely invest in anyone who is applying for the max. amount - $25,000 just happens to be the amount that they need? More likely they are the type who are living in a hole and they are likely to dig it even deeper.


nikhil - Aug 24, 2010, 3:22p
I agree with you Barbara. I also have various criteria that I layer on top of a borrower's credit grade before deciding to lend money. Expected return under those conditions are a bit harder to estimate, but in some cases also feasible.


Colin - Sep 19, 2010, 11:21a
Hey Nikhil,

Great idea to take a different perspective on the ROI. Aside from getting into the details of whether your figures are right, it is important to let people know the difference between the advertised ROI and what they might find after 3 years.

I myself have spent a lot of time recently studying into the industry and definitely think it deserves the kind of attention you are giving it.

Cheers,

Colin


Mike - Dec 13, 2010, 3:51p
I've been looking for something EXACTLY like this..

I've been looking to hunker down $50k or so into LC, but have been suspicious of their high rates and held off...

Please keep updating this post and do you have a website that does so??

Favorited..

Thanks Mike

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omar - Aug 9, 2010, 8:52a
or maybe you can accept that you may never feel X again, but you move forward and you'll feel Y, which is part of you growing into the next you.

dude i'm at Z. get on the bus.


Charlene - Aug 10, 2010, 3:34p
You are definitely a "seeker!"
Looking forward to hearing about the "results." I appreciate Omar's comment and ask, "What's after Z??"
My experience is that transformation occurrs when I'm least expecting it... and when 'trying' to recreate a similar, let alone exact, experience I'm way too much in my head to have even a glimmer of it.
I believe efforting can be self defeating in the "X" feeling department....
Be gentle with your body it is the only one ya got, this time around!
Love being part of your journey!!


Jessica - Aug 13, 2010, 8:03a
I am in the BOSS trailer and we are all reading this together and discussing X.

Jeff the field director says he experiences "X" every time he comes back from the field. Jesse (head instructor) thinks you should take the Hunter Gatherer course. He and I both agree this is the most extreme experiencing of X upon return, but Jesse says he experiences X every time he returns from the field.

My head instructor Laurel, goddess of making students suffer is sitting next to me as I type.

"I want him on my course next year. Trust me. He'll experience X."

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Jessica - Aug 13, 2010, 8:06a
I wish I had read this earlier. Jeff just suggested we send you a free BOSS field cookbook.


nikhil - Aug 14, 2010, 7:03a
That's cool. I didn't know one existed. I'll take it!

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Kanika - Aug 2, 2010, 5:18p
Last time I spoke to you - you were semi normal -- this time around you sound like a freak!! What up with u?? Why are u fasting when u have the priviledge of beautiful, juicy, tasty food that god gave us!!! Why!!!????

Although if I could build a wall in my mind for all the sugar I have I'd look like carmen--- bur no can do!!! So seriously why the weird experiment?? And the yucky food?


nikhil - Aug 3, 2010, 7:03a
Hi Kanika,

I explain my reasons in this post: http://nikhil.superfacts.org/archives/2010/07/x.html

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