I have money invested with two different Peer-to-Peer lending companies, Lending Club and Prosper. My Lending Club returns were discussed in an earlier post, which also described the concept of Peer-to-Peer Lending. Now I am reviewing my Prosper account.
Problems With Prosper
I have not added to or subtracted from my Prosper account this year. Until recently, this chart was showing returns over 13%, which I couldn't understand because my computations were far different. However, a few weeks ago all investors got an email stating that while Prosper's figures on the amount of money in our accounts was accurate, the computation of Annualized Net Returns was not accurate and it had been adjusted.
My Returns With Prosper
While my Lending Club returns, annualized, for 2017 are about 2.7%, my annualized Prosper returns, calculated by subtracting my 12/31/16 balance from my current balance, calculating the percent return and then annualizing it, were 4.7%.
My Prosper XIRR returns from the inception of the account in 2014 are 8.14%, so my current returns are less than that.
Plans for My Prosper Account
At this point I plan to maintain this account at its current level. It gives me decent returns and provides an alternative to the stock market. However, I do not believe I need any more money here and the stock market pays better.