Parking Money For Next Van

[Spirituallifetime]

Is anyone investing in the Lending Club? I was thinking this might be a good place to park money for the next van I buy in the next 3 years.
https://www.lendingclub.com/

 

[Seraphim]

http://www.cbsnews.com/news/the-lending-club-a-critical-review/

The above is a credible review of the site.

Greater gains nvolve greater risk. You're funding unsecured, risky loans. If you can candle the risk it's up to you, but bear in mind there's no guarantee of what your account will be worth when it comes time to take your money out in three years. May be a plus, may be a negative.

 

[Spirituallifetime]

i'm used to risk, when my wife gets a hold of the money there is nothing left. She just has this way of making it disappear.

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I read that review of the Lending Club and another one after the Lending Club fixed how they calculate returns on investments, still not sure if I will invest in it. I probably will start another account at American Express Personal Savings for saving for another van. And the money can be taken out at any time if I need it sooner than 3 years.

 

[Optimistic Paranoid]

I didn't know anything about this until you posted.

I read both the original review Seraphim posted, as well as the revised review that came six months later. Two words towards the end of the revised review jumped out. Anything you invest in the lending club is an UNSECURED and ILLIQUID investment.

An ILLIQUID investment is no place to "park" money until you need it. You could stumble across the perfect van, and not be able to get your money out right when you want it most.

Regards
John

 

[Ken in Anaheim]

Last I checked Chas. Schwab brokerage opened an internet-only bank that was paying the highest interest.Fully FDIC insured....FWIW
KinA

 

[Spirituallifetime]

I didn't know anything about this until you posted.

I read both the original review Seraphim posted, as well as the revised review that came six months later. Two words towards the end of the revised review jumped out. Anything you invest in the lending club is an UNSECURED and ILLIQUID investment.

An ILLIQUID investment is no place to "park" money until you need it. You could stumble across the perfect van, and not be able to get your money out right when you want it most.

Regards
John

I was thinking that I would invest for 3 years but then I got to thinking like you I might come across a van I want sooner or need to replace current van so I will put money into a savings account.

 

[VanLifeCrisis]

i did a small test of micro loans (2 50$ investments). i did a 3 and 4 year investment at decent rate. the company closed doors last year they still payed my quarterly interest, and have returned the principal after the 3 year was up. next year i should get the principle for the other. it still left a sour taste in my mouth how they so abruptly folded.
you arent really giving a loan or part of a loan to someone, you are basically securing high risk loans the bank is making for a cut of the interest they are getting.