[moneydance] Prosper.com Account Question

[Scott Zahn]

You're right, prosper.com probably isn't for you.  Stick with your CD's and inflation
adjusted savings bonds.  They're pretty much guaranteed.

On Thu, August 17, 2006 08:48, Richard McIntyre wrote:
> Loaning money to complete strangers?  No FDIC?  No loan payback
> guarantees?  Not for me.  Sounds like a great deal for prosper.com's
> owners.  Go to your local gambling casino if you like the excitement of
> risking your money -- you'll probably have more fun.
>
>
>
> Scott Zahn wrote:
>> I set up my prosper.com account as an asset account.  It seemed closer
>> to an asset than a bank account when I set it up, probably because I was
>> reading an article by Robert Kiyosaki of Rich Dad, Poor Dad fame.  I
>> might have to change the account type after I get my first statement,
>> but for now it's an asset.  Trying to set it up as an investment account
>> just wouldn't work since it's not really an investment in the typical
>> sense.  It's more like a wierd capital generating thingy.  I guess
>> that's how I describe peer to peer lending.
>>
>> cheers,
>> Scott
>>
>> P.S.  What are your impressions of it as part of an investment strategy?
>> My thoughts so far are that, while there are certainly loans to
>> consider, most of them are crap.  After the .5% service fee and income
>> taxes, any loan under ~13.5% (possibly higher) won't beat stocks over
>> the long term, which then provides a real disincentive for me to invest
>> in them.
>>
>> On Thu, 2006-08-17 at 06:26 -0400, Elana Shenton wrote:
>>> Prosper.com is a peer-to-peer lending system and it's new.  I'm trying it
>>> out with a VERY small amount of money (as a lender) and was wondering about
>>> the best way to track loans with Moneydance.  It's a very interesting
>>> concept but it's so new, I'm not sure it's an investment account or
>>> something else.  It works a bit like an investment account, but you're
>>> investing in people.   They have grades based on their credit score (reminds
>>> me of Morningstar) and you make a decision whether or not to invest in all
>>> or part of the desired loan.  You can put in as little as $50. You bid on
>>> the loan based on interest, so you could bid $50 at 23% on a high risk loan
>>> and you'd get 23% back on that loan (as long as it's paid).  Or it can be
>>> thought of as a CD with a variable yield and risk you won't get some or all
>>> of the money back if the borrower defaults.  As I said, it's interesting.
>>> I'm just not sure how to track it in Moneydance.   I do transfer funds from
>>> my bank account into my prosper.com account and they have to be available
>>> before I can invest in a loan.  Any thoughts?
>>>
>>
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