Anyone Tried Prosper?

[Geo]

Might I remind everyone that Quants were behind the current CDO/SIV problems plaguing the financial world.

If you have several hours of your life you would like to needlessly throw away, I recommend you read this:

Shel,

Sarcasm is turned off. This is a genuine request-

For those of us who don't have several hours of our lives to throw away learning what NOT to invest in (e.g. Prosper, SoWal real estate, quants/stats as the means of getting rich, etc.), could someone who clearly seems to know what they are talking about express an opinion on what a 34 year old SHOULD be investing in???

G

 

[elgordoboy]

I have some friends who have been very successful at trading. They are very reluctant to give specific advice due to human nature. Like the fact that I'll be mad at them when I lose money. Maybe I'll lose the money because I couldn't stay in the trade because I didn't have deep enough pockets but the trade for them ultimatey becomes profitable. Whatever the reason anything other than very general advice is usually not given. Shelly may feel differently but I am putting this out there in case he doesn't feel differently and won't have to say it himself and come off like a d**k.

 

[SHELLY]

Shel,

Sarcasm is turned off. This is a genuine request-

For those of us who don't have several hours of our lives to throw away learning what NOT to invest in (e.g. Prosper, SoWal real estate, quants/stats as the means of getting rich, etc.), could someone who clearly seems to know what they are talking about express an opinion on what a 34 year old SHOULD be investing in???

G

It's very important that you have a good solid foundation for your retirement investment money and that you have the proper asset allocation to match your investment goals and risk tolerance.

Since the tech bubble and again during the RE bubble, there's too much emphasis on going after the fast and easy money--we all see how that turns out.

I just finished a excellent easy read written by Jack Bogle. I suggest you buy it, or check it out of the library...http://valueblogreview.blogspot.com/2007/03/book-review-john-bogles-little-book-of.html Reading this book is an excellent beginning. You're a bit younger than I, so given the future of Social Security and pensions, it is terribly important that you get a handle on your retirement savings plan, well....like....yesterday.

Once you get a comfortable nest egg in place, you can then blow any "extra money" speculating in some of these hair-brained get-rich-quick schemes....I prefer spending mine on vacations and enjoyable evenings of food & wine with family & friends--your mileage may vary.

.
[Disclaimer: I don't give personal investment advice or portfolio management services. For me to give individual investment advice on the message board (privately or publicly) would be unethical, illegal or both.]

.

 

[SHELLY]

I have some friends who have been very successful at trading. They are very reluctant to give specific advice due to human nature. Like the fact that I'll be mad at them when I lose money. Maybe I'll lose the money because I couldn't stay in the trade because I didn't have deep enough pockets but the trade for them ultimatey becomes profitable. Whatever the reason anything other than very general advice is usually not given. Shelly may feel differently but I am putting this out there in case he doesn't feel differently and won't have to say it himself and come off like a d**k.

I knew several "day traders," most of them had a nervous tick; they had bottles of Tums on their desk, in their car and on every flat surface in their homes; they splurged on buying you dinner one night, and asked you for lunch money three days later; and those that are still alive are charter members of the Hair Club for Men.

.

 

[Smiling JOe]

geowickey, You write, "In total I have under $1000 loaned out to a diverse mix of borrowers."

I am curious to know what types of reasons are people giving to need to borrow amounts of less than $1000? I think that someone needing to borrow $100 and does so by going online to post credit info and a summary of why they need the cash, would be smart enough to do something productive to get the money. Wash a few friend's cars or rake some lawns. Just sounds shady to me. I have never been to prosper.com.

 

[elgordoboy]

I knew several "day traders," most of them had a nervous tick; they had bottles of Tums on their desk, in their car and on every flat surface in their homes; they splurged on buying you dinner one night, and asked you for lunch money three days later; and those that are still alive are charter members of the Hair Club for Men.

.

lol..no doubt
The guy in particular I am thinkng of does risk arbitrage. A few trades a year no refresh button every 30secs. He is the most disciplined and deliberate person I know. This seems to have filtered down into all parts of his life. He is bright but I would say the discipline is the reason for his success.

 

[Geo]

geowickey, You write, "In total I have under $1000 loaned out to a diverse mix of borrowers."

I am curious to know what types of reasons are people giving to need to borrow amounts of less than $1000? I think that someone needing to borrow $100 and does so by going online to post credit info and a summary of why they need the cash, would be smart enough to do something productive to get the money. Wash a few friend's cars or rake some lawns. Just sounds shady to me. I have never been to prosper.com.

Hi SJ. You've misunderstood (through no fault of your own). Check out the site and it'll make more sense. But the short of it is that people don't really borrow only $1000. The "under $1000" that I have out there is in increments of $50. So my money is spread out across many loans to people varying in their amount borrowed, their reasons for borrowing, their credit score and their Debt to Income ratios...

The idea for me was to diversify to minimize risk. This is why I think the site is such a neat concept because the Prosper folks will give Jane one loan check for the $5000 she borrowed and Jane will write one check each month for repayment. But that one $5000 loan could have come from 100 people and each month those 100 people get PI payments...

Hope this helps...

G

 

[Smiling JOe]

Thanks for the explanation. That makes better sense. Are you able to see how much more is needed to completely fund each loan? I wonder if there is any momentum lending.

 

[Geo]

I knew several "day traders," most of them had a nervous tick; they had bottles of Tums on their desk, in their car and on every flat surface in their homes; they splurged on buying you dinner one night, and asked you for lunch money three days later; and those that are still alive are charter members of the Hair Club for Men.

.

OK Shelly. No get rich quick schemes. No speculating. No trying to beat the market with mutual funds that have costly fees. Just go with an Index so that over time I am guaranteed to do as well as the market which historically for any long period of time will get anyone rich. I recognize that you are not giving me any advice here.

So a few questions-

If I wanted to regularly put money into an index which ones are highly regarded? What is the best way to go about it? Who would I call? What website can I go to to make it happen?

 

[Smiling JOe]

Because of its low fees, Vanguard S&P index fund is highly regarded. (I don't own it.) Vanguard has a website, and you can do it all online.