Harmoney

[Wsp]

An automatic withdrawal function would now be useful. Saves having to login to arrange each cash withdrawal payment.

[Chickens]

An automatic withdrawal function would now be useful. Saves having to login to arrange each cash withdrawal payment.

I agree. I will be using Squirrel Money's automated withdrawal feature from next month.

[Harvey Specter]

Mainly 1 note but I think I did a few 3's as well. I was just under $10k so the decision was to invest more to get into the next fee level, or start withdrawing.

I have a large portion of funds in very high risk start up investments (My Gamble bucket) and a mix of high risk and growth/yield NZX investments (Diversified equity bucket). My kiwisaver is in index funds. I will put this money, and the other money I had set aside for Harmoney into a yeild/low growth diversified bucket.

Sharemarket is full of Kiwisaver funds struggling to invest the constant flow of cash coming in.

[Harvey Specter]

Less than 10% is my guess at what my RAR would have been if the new fees had been in since the start. Probably reflects in part my high write offs.

Not sure why my write offs have been so high. But when you find out you don't understand an investment like you thought you did, time to get out.

[Bjauck]

Less than 10% is my guess at what my RAR would have been if the new fees had been in since the start. Probably reflects in part my high write offs.

Not sure why my write offs have been so high. But when you find out you don't understand an investment like you thought you did, time to get out.

Some thought the 3-year terms were a safer bet than the 5 year terms - your portfolio seems to disagree with that.

At least you are "in business" so the charge-offs are more likely to be deductible. Otherwise if charge-offs are non-deductible your net after tax RAR would have been about 5% by my guesstimate or a RAR of 7.5% grossed up. Not particularly high given the risk and as you say in a non-recessionary period.

[scottwalshnz]

Some thought the 3-year terms were a safer bet than the 5 year terms - your portfolio seems to disagree with that.

I had that assumption to start with, however have found 5 year terms appear safer.
I've got two harmoney accounts (different entities), I've invested in similar risk profiles, but one is weighted more to 3-years and the other 5-years. I'm finding the RAR is much higher with the 5-year weighted account.

[RMJH]

Less than 10% is my guess at what my RAR would have been if the new fees had been in since the start. Probably reflects in part my high write offs.

Not sure why my write offs have been so high. But when you find out you don't understand an investment like you thought you did, time to get out.

Possibly not diversified enough? My rule of thumb is at least 200 loans for each grade - the more the better. I don't do E's or F's but would be wanting more like 300 of each if I did as the higher the risk the higher the volatility.

[Harvey Specter]

Some stats on my portfolio:
Harmoney.jpg
The first 10 loans I invested in:
Harmoney_1.jpg

[Harvey Specter]

Possibly not diversified enough? My rule of thumb is at least 200 loans for each grade - the more the better. I don't do E's or F's but would be wanting more like 300 of each if I did as the higher the risk the higher the volatility.

more diversification may have helped but I should have had enough that the benefit would be minimal. More loans should just push me even closer to the average RAR which I was close to anyway. It would interesting to know the platform RAR per grade.

I don't see why there is a need for so many in each grade - I think total loans regardless of grade is the key to diversification.

[RMJH]

more diversification may have helped but I should have had enough that the benefit would be minimal. More loans should just push me even closer to the average RAR which I was close to anyway. It would interesting to know the platform RAR per grade.

I don't see why there is a need for so many in each grade - I think total loans regardless of grade is the key to diversification.

You got me thinking maybe I was being too cautious so I did some googling....
http://www.lendingmemo.com/risk-dive...n-p2p-lending/