I stopped investing in lendingclub once I realized the taxes on my gains. Interest is basically counted as income, which makes capital gains in stocks much more attractive.
What I did notice that I was pretty bad at picking notes. Lots of handpicked ones flopped and a lot of random/automatic ones are still going.
Yeah, I learnt about it from a fellow co-worker and have been using it for the last 6 months. It's pretty seamless to get started with it and has offered better returns for me then the LC's own auto investing strategy.
It really depends on what type of loan grades you tell it you want to invest in but the median returns of LC investors is about 7% and depending on how you setup the auto investor but returns of 5-10% are typical.
One way to convert future interest income to capital gain is to buy notes on primary platform and sell notes on secondary platform at a small markup. I am able to turnover about 15% of my Lending Club portfolio this way and generate capital gains in lieu of foregoing future interest income.
What I did notice that I was pretty bad at picking notes. Lots of handpicked ones flopped and a lot of random/automatic ones are still going.