All Forum Posts by: Pradeepan V.
Pradeepan V. has started 5 posts and replied 27 times.
Originally posted by @Dan Rudolph:
I highly recommend that you check out Peter Renton's website before you jump whole hog into Lending Club.
Interesting. I will check it out
He is no slouch, and is making low single digits on Lending Club. Do you really think that you can do better than Peter with his extensive experience and resources?
Oh wowok. Thanks for the resource. I will go through the same.
You are better off buying 20-year treasuries. Seriously.
Will check it out
Originally posted by @Dmitriy Fomichenko:
Thank you Dmitriy. You are a rock star
I did invest small amount with Lending Club, but in my personal opinion returns are low, and it is not liquid. I prefer private lending, gives you much greater return.
Can you give more information on this private lending?
1. Is there any market place where I can lend private money( is it like hard money lender?). Any suggestions?
2. How are the returns?
3. How is this liquid compared to lending club? I assume they still have to pay back monthly( but guess you mean its short term 6-12 months for flips etc as compared to lending club which is 36-60 months?
4. Risks and considerations?
Originally posted by @Dan Rudolph:
this is excellent Dan. Thank you. You are right. I got confused. Makes sense. Very clear now.
I will evaluate again which brokerage makes sense from cost and options stand point and go from there
Cheers
Originally posted by @Dan Rudolph:
This is awesome Dan. I wasn’t sure how brokerage account also kind of acts as a bank account too. I am surprised that they don’t charge any fees too ( guess it’s bcoz the transfer is initiated from prosper and not Ameritrade?). This option really work for me and I would be more than happy to transfer $18k to the brokerage account if this is possible. Lending club also allows for ACH initiated from their side so which is cool. I have had success so far with lending club( for my personal account) for the past 1 yr been getting 16%+ returns and touch wood hope it continues. Hence getting greedy to put my 401k investment also in there plus want to try out lending club’s secondary market( where people want to sell their notes)
So does ameritrade give out routing and account number for this purpose? 🧐
I am thinking of going with etrade as I heard they do 401k loans and does Roth conversions too which is not possible in others or possibly Charles schwab...
Originally posted by @Michael Lee:
Thank you Michael. I think you didn’t understand my question. Anyways I learnt something from your reply though it’s not relevant to what I wanted. Also try out lending club or prosper. www.lendingclub.com or www.prosper.com. They are crowdsourced lending platforms where people can borrow money and you lend them money( through what they call “notes”) similar to banks rates vary depending on various criteria including credit score. If you are smart with your filters and use some good judgements plus some luck you will get real good returns.
Created duplicate reply not sure how to delete a comment 😢
Hi
Newbie here. Awesome forum. Love reading great posts.
So this is my situation. I have a Solo 401k trust account established through mysolo401k. I have got my EIN too. They have been very helpful in answering my questions but I would like to know some real life examples(if there is anyone who is doing similar to what I am doing). Based on my income I can contribute about 18k ( Employer & employee contributions) to this solo 401k account.
I am trying to establish 2 accounts - One with a brokerage fidelity etc to trade in stocks, MFs, ETFs etc using my solo 401k account which is little straightforward - Planning to put 50% of my contribution here( 9k)
The second account I would like to setup is through lending club. They allow to open trust accounts so can I just open trust account with them using my Solo 401k trust name? Currently all my self employment income goes to my capital one checking account. Is it allowed to transfer amounts from capital one to this lending club on monthly basis and transact - Planning to put 50% of my contribution here( 9k or 750/month). I also plan to keep investing the interest gained.
Or is it mandatory to open up a bank account in the name of the trust( like through Titan or Solera or others) and then transfer the amount from that bank account to lending club. The monthly maintenance fees and ACH transfers are pretty high so it doesnt make sense for me to open one. Is anyone investing in lending club using their solo 401k? If yes how are you doing it?
Can I open third or multiple different accounts with other providers for my 401k trust? is there a maximum number of accounts that I can open( IRS rules?)
Finally I assume both these brokerage accounts and lending club will issue 1099-INT in the name of the trust end of the year? How is it treated while filing taxes? Do I just ignore these 1099 as its not taxable income? or what am I supposed to do?
Are you investing in any other non traditional investments(gold, bitcoins etc etc)? If yes how?