Harmoney

[alistar_mid]

Does your spreadsheet take into account tax and fees ? Does it take into account early repayments and the effects of having to invest in lots of $25 in order to take avantage of continuous interest earnings ? You would almost need to write a program todo all that ? Paying tax/fees as you earn it - has a huge effect on your earnings at the end.

I think your calculation at the end for returns over years - is not the same as compounding interest.

I think its incorrect to come in at 85 loans at the start and 85 loans at the end - as you would be over time you would be reinvesting in new loans as payback happens etc. The interest you earn would be put into new loans - new loans risk profiles.

Food for thought.

The tax and harmoney fees are very easy to do.

The only thing that gets complex is reinvesting. So i don't have that in the model. You can't really add re invested loans to existing loans as payment periods are different etc, has to be a new line in excel and then this in turn has its own stuff reinvested the next period. Kind of like compound interest, except the compound is its own loans with variable characteristic (interest / default rate, % early payback etc etc).

Though I have modeled the scenario that all payments coming out of harmoney go into a managed fund at 8%.

For simplicity i assume investing in chunks of $100

To be more specific I use IRR, ie goal seek on a particular portfolio balance what default rate multiplier (ie simulation of a recession) makes my IRR go to zero.

I pretty sure I have everything exact, i can download a csv from harmoney, feed it into my model, and on my summary page it spits out a (pretty much to the nearest cent) a reconciliation with my harmoney dashboard.