I’ve been an investor with Prosper, a peer-to-peer (P2P) lending company since 2012. I usually check my account once a quarter to view my performance and to re-invest cash that has come in from borrower payments. Per my latest passive income update, the annualized return of all of the notes in my portfolio is 7.41%. Better than a swift kick in the nuts!
With rates expected to rise by perhaps as much as 2% over the next several years, I suspect the returns on P2P lending will also commensurately increase. As a result, I plan to allocate more of my free cash flow into Prosper in $10,000 increments.