My Passive Returns: 2019-10 October
Before I post my returns I want to show a break down of different ways to compare your returns. Below is a chart of my last 5 years of returns, I tried to summarize how the calculation is done
Each of these calculations have there drawbacks based on anything you can think of like: investment type, of contribution times, withdraw times, age, and etc..... But my two favorite calculations to use are "Total Return" and a simple "CoC". I like "Total Return" because it is a landmark achievement to hit 100%, it's the point where your investment has efectly paid for it self and you could take out all your contributions and still have a sizeable investment. Obviously I would prefer to leave my money in and get to 1000% faster. Of note this metric is useless when comparing zero cost investments like certain real estate deals with infinite returns. I like a simple CoC return because it works best with my style of investing. I don't invest or withdraw large sums of money regularly, I tend to make regular investments over long periods of time (witch by nature can be hard to quantify based on type)
Passive Income from M1 Finance, Groundfloor, Peerstreet and Lending Club.
My Returns
Monthly Numbers
Duplex 1, CoC: 1.14% (estimated)
Duplex 2, CoC: 0.99% (estimated)
Mortgage 1, Coc: 0.67%
Business Loan, Coc: 0.67%
Lending Club, COC: 0.44%
PeerStreet, COC: 0.66%
Groundfloor, COC: 0.65%
M1 Finance, COC: 0.30%
Total, COC: 0.66%
Summary:
Click to sign up for PeerStreet and get your bonus
Click to sign up for LendingClub and get your bonus
Click to sign up for M1 Finance and get your bonus
Before I post my returns I want to show a break down of different ways to compare your returns. Below is a chart of my last 5 years of returns, I tried to summarize how the calculation is done
Each of these calculations have there drawbacks based on anything you can think of like: investment type, of contribution times, withdraw times, age, and etc..... But my two favorite calculations to use are "Total Return" and a simple "CoC". I like "Total Return" because it is a landmark achievement to hit 100%, it's the point where your investment has efectly paid for it self and you could take out all your contributions and still have a sizeable investment. Obviously I would prefer to leave my money in and get to 1000% faster. Of note this metric is useless when comparing zero cost investments like certain real estate deals with infinite returns. I like a simple CoC return because it works best with my style of investing. I don't invest or withdraw large sums of money regularly, I tend to make regular investments over long periods of time (witch by nature can be hard to quantify based on type)
Passive Income from M1 Finance, Groundfloor, Peerstreet and Lending Club.
My Returns
Duplex 1, CoC: 1.14% (estimated)
Mortgage 1, Coc: 0.67%
Business Loan, Coc: 0.67%
Lending Club, COC: 0.44%
PeerStreet, COC: 0.66%
Groundfloor, COC: 0.65%
M1 Finance, COC: 0.30%
Total, COC: 0.66%
Summary:
- Added 4 other sources of income to the chart, 8 total income sources of that 7 are currently significant, M1 is still ramping up and is currently 0.13% of my income.
- Continue to hold a large amount of short term debt, mostly 30 day term increasing the amount of 90 day term.
- Hard to find 8% or higher loan in PeerStreet causing cash to sett in account longer.
- Purchasing less loans in Lending Club, focusing on higher yielding strategies and transferring out cash when when its builds up.
Goals:
- Increase contributions to M1 Finance from $40 per month to $50 per month
Sign up Referral bonus urls
If your interested in signing up for any of these great investment sites and want to get a bonus when you do, use one of the links below.
Click to sign up for Groundfloor and get your bonusClick to sign up for PeerStreet and get your bonus
Click to sign up for LendingClub and get your bonus
Click to sign up for M1 Finance and get your bonus
Definitions:
CoC - Cash on Cash returns, I define as "how much cash was returned divided by how much cash I have invested."
CoC - Cash on Cash returns, I define as "how much cash was returned divided by how much cash I have invested."
No comments:
Post a Comment