Using P2P Lending To Reach Financial Freedom

Portfolio Update: June 2019

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June has been a busy month, just like any other month. While it has been a busy month, my portfolio income is excellent. It has been an expensive month as well. The last couple of months i have been able to invest about 400-600 euro a month. However, i need a new laptop since my current laptop has almost reached a dead end in performance (It is a 6-7 year old computer). The replacement laptop is going to cost ~1600 EUR. Hence, why i have only made a single deposit in June. Therefore, i might not make any deposits this coming month. Furthermore, i will have to “refill” my emergency fund with the ~1600 EUR i am going to use on a laptop.

General portfolio comments

From last month i told i had problems with the platform Fastinvest, which had a lot of cash-drag. In June Fastinvest has keep the cash-drag going, which means my strategy of signing loans from 13,5% and up, can no longer be done on this platform. However, in the start of the month i readjusted the annual ROI to 13% instead of 13,5%. The auto-invest tool has invested all my money, however i have yet to see the returns. I am afraid that Fastinvest only has low yielding loans currently. This will decrease my portfolio income in the future.

The current portfolio income is quite good. I would like to see a dividend month like April again. Or in general get my monthly portfolio income up.

Portfolio value and income of June 2019
Portfolio value and income of June 2019

Nonetheless, despite cash-drag the overall portfolio is still going strong. This month the portfolio increased with about 5,5% in total. All of my capital gaining assets are starting to move from negative to positive. Just to highlight the overall portfolio returns look in the table below.

MonthPortfolio valueIncomeXIRR (interest
incomes)
ROI (Capital
gains)
Jan-194691215,7%-26%
Feb-195082378,9%-24%
Mar-195434369,7%-23%
Apr-1960805410,7%-21%
May-197081359,0%-12%
Jun-197475347,4%-8%

The XIRR describes the average expected annual return, and the ROI describes the average return on investments. What can be derived from the table, is that the capital gains is starting to increase quite significantly. This is mainly due to the crypto and stock market both have a positive upturn recently. Furthermore, the XIRR are HEAVILY dragged down by the interest from Celsius Network. The XIRR from Celsius Network has been 2-8% so far. However, 2% is way better than 0%.

Something new!

I am introducing the concept of income vs. expenses. The purpose of tracking expenses in relation to my income is to get an overview of where my money are going. The concept i quite simple. Track every penny leaving the bank account. This is also one of the steps i described in the post i made about financial freedom.

Income vs expenses with savings rate
Income vs expenses with savings rate

I will keep track of my expenses. This will help my identify costs which is i find unnecessary. This can potentially help build a higher portfolio income in the future.

P2P lending Income

The P2P lending income is going smooth and steady. The overall performance is quite satisfying to look at. With just ~2600 EUR i earn 30 EUR a month doing absolutely nothing. The only thing slowing my P2P lending portfolio is Fastinvest. It seems like their newer loans are sub 13% returns. First of all, it is not yet critical for me to see higher returns. However, it is important for me to see my money working, and not idling in an account. Furthermore, i will be looking into the lower returns the last two months. Lastly, concerning Fastinvest, i might look into alternative platforms to put my money.

Mintos and Envestio are both doing great returns, stable cash-flow and no overall concerns. However, a small concern is that Envestio has posted zero loans in June. However, there has been a change of bank. The change of bank can be a big task for a company who handles finances. Therefore, i am not yet concerned with Envestio, i just wanted to mention the lack of projects in June.

P2P-Lending portfolio income and value - June 2019
P2P-Lending portfolio income and value – June 2019
PlatformPortfolio valueInterest incomeXIRR
FastInvest449,673,459,3%
Swaper71,970,46,7%
Mintos950,288,8311,3%
Envestio1205,1117,1317,3%
Total2677,0329,8113,4%

Envestio

What can be seen in the table above is that Envestio is rocking my world in terms of income. Over half of my income is from Envestio! In contrast to the other platforms, Envestio has a big percentage of my total portfolio. However, Envestio is returning and expected 17,3% annual XIRR with the returns from this month. I have ~130 euro on Envestio which is not yet invested, so i expect the income will be greater in the following months, whenever they starts to make new projects available.

MonthEnvestio incomeEnvestio portfolio valueXIRR
Dec-18673,72
Jan-192,85676,575,08%
Feb-1912,35688,9221,90%
Mar-198,73697,6515,21%
Apr-199,63906,6516,56%
May-1915,131187,9820,03%
Jun-1917,131205,1117,30%

Mintos

Mintos continues the stable cash-flow. My income decreased with 1,3 EUR this month. Furthermore, i can see that the delayed loans are starting to go up. In May i had about 240 EUR which was late on repayments. However, now it is about 310 EUR which is late on repayments. I have experienced a delay in repayments like this before. Hence, i do not worry one bit. Mintos will take care of the late payments eventually, with interest.

The late payments can also be seen on the XIRR in the table below.

MonthMintos incomeMintos portfolio valueXIRR
Sep-18160,07
Oct-181,38561,4510,35%
Nov-183,35564,87,16%
Dec-185,34570,1411,35%
Jan-194,76619,2410,02%
Feb-195,27718,1810,21%
Mar-196,09724,2710,18%
Apr-197,61931,2512,61%
May-1910,2941,4513,14%
Jun-198,83950,2811,25%

Fastinvest

There is not much to discuss in relation to Fastinvest. As described previously, i will see if the returns starts again this month. First of all, the returns and cash-drag has to end. If this is not the case i will look into other platforms. Reason being Fastinvest delivered a XIRR of 9,3%, which was 11% in May, which was when the cash-drag started. Fastinvest has been a very stable and high yielding platform. However, with a 9,3% return, there are several other platforms which can perform better.

MonthFastinvest incomeFastinvest portfolio valueXIRR
Sep-18408,16
Oct-184,62412,7813,6%
Nov-184,84417,6214,1%
Dec-184,88422,514,0%
Jan-194,99427,4914,2%
Feb-194,88432,3713,7%
Mar-194,9437,2713,6%
Apr-194,9442,1713,4%
May-194,05446,2211,0%
Jun-193,45449,679,3%

Cryptocurrency portfolio

The cryptocurrency market has for real been set on fire. Twitter, the news, old Facebook communities and much more are being flooded with new members and people yelling “to the moon” and “lambo!”. The volume reached higher than under the bull run in January 2018. However, the prices has yet to reach all time highs. For that reason, i am still bullish long-term. Big corporations, bankers (or former bankers), former wall-street people starts speaking/tweeting publicly about the impact of Blockchain and cryptocurrencies.

Cryptocurrency market volume and market cap
Cryptocurrency market volume and market cap

Right in this moment we have a small recession. Many speculate that we will see new lows, and other are speculating that we will see a bull run bigger than than January 2018. For my sake we can go either way. If we dip lower i get the chance to purchase even cheaper than current prices. While, if the price goes up, i will soon be in overall profits from crypto (one of the con’s of starting crypto in December 2017).

Cryptocurrency portfolio and interest income
Cryptocurrency portfolio and interest income

Thanks to Celsius Network i now earn interest on my crypto. This is way better than having the crypto on an exchange doing nothing. Now i get between 2% and up to 10% returns on my crypto. This will also increase my overall portfolio income.

Return on Investment of crypto?

CryptoAmountPriceROIValue EUR
Neblio116,920000,98-85%114
Bitcoin0,077229.584,6453%740
Nebulas32,720001,37-81%45
Litecoin7,00000106,9739%749
Neo2,0000014,38-82%29
COS222,630000,03-74%6
Wanchain15,000000,31-94%5
Icon21,000000,28-91%6
Cardano2.653,000000,07-42%190
Celsius2.920,820000,05-39%155
BAT27,660000,288
Stellar73,040000,097
EOS1,270005,056

First of all, i am not yet in profits from the crypto market. However, both Litecoin and Bitcoin has turned to profit. Furthermore, i have bought both Neblio, ADA, Litecoin and Bitcoin in the lows we have seen the last couple of months. Also, LaLaWorld is no longer existing. LaLa has merged with COSS exchange. The LaLa is being exchanged in a ratio of 10:1 (LaLa:COS).

Lastly, i have received some free Basic Attention Tokens (BAT), Stellar and EOS from Coinbase. Coinbase has partnerships with different cryptocurrency companies, such as EOS, Stellar and BAT. The objective for Coinbase and their partners is to make the public aware of the benefits of crypto, which in return is rewarded with FREE crypto. You can sign up HERE if you do not have a coinbase account, or just want to purchase Bitcoin, Litecoin or any other cryptocurrency.

Stock portfolio value

The stock market has had a small re-bounce since last month. A small increase of ~100 EUR. I received dividends from Nvidia this month. The dividend was 0,28 EUR. So the capital gains has been a lot better this month.

Stock portfolio: June 2019
Stock portfolio: June 2019
StocksSharesTotal Share ValueROI
Nvidia2289,0-33,2%
Top Danmark A/S5241,723,3%
Novo nordisk B A/S6265,410,9%
DSV3252,28,1%
Carlsberg B A/S2227,913,6%
Alibaba Group Holding1149,1-2,1%
Novozymers B A/S6243,1-11,8%
Nordea27171,0-26,3%
JD.com380,0-0,3%
Chemometec A/S6125,190,3%
Gratomic INC150039,6-75,0%
Total2084,0-0,2%

While it looks like i soon will break-even on my stocks, is am actually still negative ~600 EUR (See the histogram at my Portfolio page). This is mainly because of transfer fees, exchange fees and purchase fees. So what i deposit is not what is invest, sadly.

Mutual- and index funds

The index funds are holding their value this month yet again. A very small increase in the overall value. Most noteworthy, is to mention that whatever happens to the stock market will be indicated on the this curve, just in way smaller fluctuations.

Mutual- and index funds portfolio value - June 2019
Mutual- and index funds portfolio value – June 2019
Index/mutual fundSharesTotal Share ValueROI
Maj invest vækstaktier12188,77,6%
Sparindex INDEX Globale akt min risk KL14269,28,6%
Sparindex INDEX OMX C25 KL7196,66,5%
Total value654,57,6%

Conclusion of June 2019

In conclusion of this month, Fastinvest needs a deeper look into the state of returns and cash-drag. If Fastinvest is showing signs of failing to deliver the expected returns a new platform will be investigated. While i can only recommend Fastinvest, i do not accept 9,4% returns when i am expecting 13,5% and up.

The overall state of my portfolio is very satisfying. Currently pulling between 35 to 55 EUR per month. You can do this as well. It is all about getting started.

via GIPHY

So just get started!

You can sign up on Mintos HERE and get 1% in bonus payout. There are options to diversify like crazy, go for high returns or go for super safe.

You can also learn more about Mintos HERE.

Lastly, you can invest in Envestio HERE. If you deposit more than 100 EUR you will get a 5 EUR signup bonus. Furthermore, you will get a 0,5% payout bonus. Envestio lets you get some of the highest yielding returns on the market.

You can also learn more about Envestio HERE.

If you are more to a set and forget investment, you can also sign up on Fastinvest HERE. You can invest for as little as 1 EUR. Furthermore, they buyback any loans you have, if you should need your money at any time!

You can also learn more about Fastinvest HERE.

If you are more into crypto you can sign up on Coinbase HERE.

If you want something familiar i do not blame you. Then you should invest in stocks and index funds.

Now you have no excuse but to get started investing, i have even provided links which can yield you even bigger returns!

10 Comments

  1. Interesting to read about your experience with the different platforms – also about your cash drag on FastInvest. Envestio has also rocked my world in terms of returns!

    • I will say that Envestio is my favourite platform in terms of returns. However, i must admit that Mintos has my biggest trust of the three platforms. They are transparent, innovating and always doing something the other platforms are not. I really like that.

  2. Nice and steady wins the race 🙂 Tough luck with the laptop, but everything has its time. I like your diversified portfolio!

    • Thank you European Dividend.
      I like to hope slow and steady wins the race too. However, p2p-lending and crypto is to be tested in global recessions like the housing and dotcom bubble.
      Let us hope both dividend, p2p, and crypto does well in the next recession 🙂

  3. Hi.
    Nice to see someone who is investing ‘realistic’ amounts…
    I’d like to make a comment on your Fastinvest statements.
    All your points are correct. But I’m able to keep the yield at a steady 13%. Ok other platforms can do better (Crowdestor is my favourite for mega yields), but fast infest is the only platform what combines some important features;
    -buy back guarantee with no loss of principal.
    -money back guarantee in case of bad loans
    -(re)investments from 1€
    -clear and simple website!

    Now what I’m doing to keep it at 13%
    -check it every day! If interest+principal is less than 10€, invest it manually. (Interest is not auto invested!, only principal) This takes up less than 1 minute of your time. No need to check the loans, just take the highest interest one.
    -the auto invest is set to 13%, dayly enough loans available.
    -set the month slider for max at a minimum of 9/10 months. The shorter ones are not 13%

    (13% is more than 1000x more than I get on a savings account in Belgium)

    If you need urgent money without losing interest this goes also relatively fast. Because principal is also payed dayly, you can recover 10% of your portfolio each month (just stop auto invest)

    I have 3000€ invested 2 months ago (mid may and June). And have 33,29€ expected profit for only August.

    Greeetz

    • Hi SW,
      Thanks, i like to keep it real. Therefore, i show the modest amounts that i have. Some people need to have a different mindset to investing, and not believe it is only for the rich.
      I absolutely agree with you. Fastinvest is a good platform and that is also why i haven’t withdrawn my money. But if you look at the chart, it looked like we where going under the average interest rate on any other platform. But i think Fastinvest currently on has loans up to 13%. So i adjusted accordingly it seems like my returns are coming back nicely (You can find it in my July update: https://thepoorinvestor.eu/portfolio-update-july-2019/)

      Thanks for sharing!

      • Indeed, the more people get in the p2p lending, the lower the interest rates gonna be I think. those +10% gains won’t last forever.
        I missed your july post, gonna take a look at it!

  4. Regarding Celsius Network
    I’m really getting interested into that!
    What I don’t like is the fact that earned interest cannot be reinvested (compound).
    But in many ways Celsius is the best choice I think.

    But what I want to mention, keep your payments in the currency of your investment!
    The CEL tokens seem to have a bigger reward, but as I am a serious HOD’ler this will make much more money in the long run.

    I’m putting in btc/ltc/eth/zec. Wort today 5k.

    Greeetz.

    • I agree, it is a shame that earned interest do not compound. However, i have heard that if you withdraw everything, wait a couple of weeks and then deposit again, you will earn interest on the newest deposit. I haven’t tried myself.
      You can read my experience with Celsius here: https://thepoorinvestor.eu/celsius-network-blockchain-banking/ . I am a serious hodl’er as well. I am not confident what will have the biggest long term reward. But if Celsius is the platform which starts the blockchain banking industry, CEL token will be worth some serious money. However, you can always chose to earn in the deposited coins.
      It is worth to keep it on Celsius as you will earn some passive income, rather than having it on an exchange or wallet.
      Let me know how it works out!

      • When other platforms come with compound interest on crypto, Celcius will have to follow… Nexio has already compound and they are coming with interest on crypto in the near future. Spoke to them via mail but they won’t give me more info when exactly. Celcius has more coins and looks/feels better to me…
        Regarding the CEL tokens, I did not know that, I assumed those were another stable coin… Gonna take a closer look at it, thank you. But for now I prefer to gain more free Bitcoin.

        Another remark. In case of a HardFork, we will not be able to receive the new coin. Or it has to be an important one so they will add it to their wallet. Or they will replace the original with the new one if the new one should be more important. It’s in their terms of use.
        greeetz

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