Index funds like Smartshares ETFs have been around for over 10 years so they are time tested. Only time will tell if Harmoney's gamified platform is a good way to invest your hard earned money. The jury is still out.
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Index funds like Smartshares ETFs have been around for over 10 years so they are time tested. Only time will tell if Harmoney's gamified platform is a good way to invest your hard earned money. The jury is still out.
haha, well I'm a big star wars fan and loved lego as a kid, so I started buying them to mess round with. Soon noticed there was a real community around it with the rarer sets going for multiples of what they came out at.
So now that I have the means, I usually buy up 2 of every set that comes out - always trying to get it on the cheap (20% warehouse pre x mas toy sale + 20% shareholder discount combined for 36% off ftw).
Soon realised I had a tonne of lego, so added it to the balance sheet!
Attachment 8971
Mine took 6 to 9 months to level off also.
Note the dip was first lot of arrears
Thanks Whitt - those graphs tell a great story for newbies.
On a completely different topic: bankruptcies - could they become the bane of P2P lending?
Baby boomers struggling financially
Seven signs Australia can't avoid economic apocalypse. Let's hope this dude is wrong
meh not worried at all it only scored 19% on RT
Attachment 8974
Also, kinda getting pissed at all these defaults now. Almost a year in, still less than 1% and I'm sure my weighted average annual default rate > 1%
Attachment 8975
All my defaults are grade E's
[QUOTE
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All my defaults are grade E's[/QUOTE]Losing 10% of your interest after a year in indicates your default experience is much greater than Harmoney projects - around twice expected on your figures. Note also that as you are heavily weighted to 60 month, when loans do get written off you will take a bigger hit than if you were in 36 month loans (assuming Harmoney is right in suggesting that the default profiles are similar with regard to time in the loan.
BJ1 I think you've said something like that before - can you expand on it a bit? The Harmoney forecast default rates are an annual percent of loans, not interest rate?
If you assume the average loan in the above is $100, that's only 8 loans defaulted - for the spread that looks like less than Harmoney would forecast to me?
The 36 vs 60 month comparison isn't as simple as it looks - an overly simple example - to get the same interest as a 60 month loan you need one 36 month loan and (to make it easy) a 24 month loan - the chances of a default increase for the two loans vs the one lone. Not the best example but perhaps helps think it through.
well crunching some numbers my weighted average annual default rate is 1.87%
I have 0.89%
The weighted average age of loan I have is 4.02 months.
Therefore 1.87 / (12 / 4.02) = 0.63% is where I should be right now.
So I am tracking slightly higher than I should be.
Hmm it is like 89/63 = 40% higher than what it should be.... ><
If we take a basket of loans at C1 as an average and earn18.52% in interest and write off 0.86% of the principal after a year thatrepresents 4.64% of the interest actually earned, yet alistar has lost 9.13% ofhis interest. So he is either sufferingdefaults at a greater rate than Harmoney expects, or they are occurring veryearly in the loan life – neither is as expected.
Harmoney estimate that 80% of defaults will occur by 18months with both 36 and 60 month loans having a similar hazard curve. On a $1000 loan@ 18% surviving for the 18 months the writeoff on a 60 month loan will be $787against $567 on a 36 month loan; and one has to wonder about loans on the booksfor only 6 months or so which are written off