HonestFIRE

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HonestFIRE
Posts: 5
Joined: Sat Jun 01, 2019 2:36 am

HonestFIRE

Post by HonestFIRE » Mon Jun 03, 2019 3:25 am

Hey guys,

I'm 25 years old sales man who is trying to reach FIRE by the age of 35. I blog about my experience in Lithuanian and most of my investments are in P2P. Last week I've had a chance to have an interview CEO of Reinvest24 and would like to share that with you.

Anybody else have most of their investment portfolio in P2P? Any investors in Reinvest24 or FinBee?

Nicolino
Posts: 19
Joined: Thu Dec 06, 2018 6:16 am

Re: HonestFIRE

Post by Nicolino » Wed Jun 05, 2019 7:51 am

Hi there! I have experience with P2P (here it is with small/ medium businesses though). While I haven´t gotten severely burned yet, I am getting increasingly wary of it and feel an index fund investing strategy provides better risk-reward balance than P2P....

HonestFIRE
Posts: 5
Joined: Sat Jun 01, 2019 2:36 am

Re: HonestFIRE

Post by HonestFIRE » Thu Jun 06, 2019 8:03 am

What return did you get?

Nicolino
Posts: 19
Joined: Thu Dec 06, 2018 6:16 am

Re: HonestFIRE

Post by Nicolino » Thu Jun 06, 2019 7:51 pm

Most of my loans were 10-12% annual, but after some defaults I am left at 4-5% annual, better invest in index funds....

HonestFIRE
Posts: 5
Joined: Sat Jun 01, 2019 2:36 am

Re: HonestFIRE

Post by HonestFIRE » Fri Jun 07, 2019 2:22 am

Oh wow, that sucks :) I get 20% post default on FinBee. Now the return is around 15% post default for a mixture of SMEs loans and privates.

You can use google translate to read my articles about the platform, if you want.

slowtraveler
Posts: 767
Joined: Sun Jan 11, 2015 10:06 pm

Re: HonestFIRE

Post by slowtraveler » Fri Jun 07, 2019 5:12 am

Can you stop spamming the site with your p2p links?

Lending Club and Prosper were more credible than the ones you're talking about. They started out with high returns then dropped significantly over time. I lost money on mine and it was hard to get out.

Berkshire has had 20% returns as it's average, p2p wont achieve that over any period of time.

HonestFIRE
Posts: 5
Joined: Sat Jun 01, 2019 2:36 am

Re: HonestFIRE

Post by HonestFIRE » Mon Jun 10, 2019 5:38 am

Hi, slowtraveler,

thank you for your message.

Berkshire is expecting lower return than usual because they find hard to make all their capital work. :)

FinBee has been running for 4 years and keeps low default rate. I trust them. It's my choice to go for FIRE, there are certainly more than one way to go for it :)

slowtraveler
Posts: 767
Joined: Sun Jan 11, 2015 10:06 pm

Re: HonestFIRE

Post by slowtraveler » Mon Jun 10, 2019 12:38 pm

I made the point about Berkshire because a 19.2% return over a single investing lifetime is enough to grow a company to amongst the largest in the world. It's extremely unlikely you'll earn even the S&P 500's return over time.

Companies are more productive than individuals so the core economic engine is stronger with the stock market index. Moreover, the P2P sites you recommend are essentially unsecured junk bonds that banks wouldn't touch on the listed terms so consumers had to go through a secondary market to obtain the collateral.

If you're honestly not a scammer trying to doop us, I sincerely hope you learn more about these so as to diversify and save your wealtb sooner than later.

HonestFIRE
Posts: 5
Joined: Sat Jun 01, 2019 2:36 am

Re: HonestFIRE

Post by HonestFIRE » Wed Jun 12, 2019 4:20 am

Big part of my loans are for the SMEs. Current default rate is 1.4% with maturity avaraging at 18 months. The whole portfolio has matured twice since I have started investing so I do not see a reason not to trust the platform. If the company defaults then there's a personal guarantee of the CEO/stockholder to cover the remainder of the loan. The loan amounts are small (up to 25k) so it's extremelly unlikely for a person not to earn this amount of money during a lifetime.

Financial Nordic
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Joined: Sun Aug 04, 2019 12:32 pm
Location: Scandinavia, European Blogosphere
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Re: HonestFIRE

Post by Financial Nordic » Mon Aug 05, 2019 1:45 am

P2P-loans are deifinitely interesting. I only have a small percentage of them in my portfolio, but I'm planning to add more. The risk is always there, but with the buyback guarantee, I am not too afraid. Too bad that your blog is in Lithuanian language :D Google Translate is always there, but have you considered writing in English also?

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