First of all, a new record in passive income in one month!
February is the first month in about a year that I did not receive a salary. I now depend on SU (Money danish students get to attend school) and my blog income. While the money is modest I managed to stay within budget (while this is not easy).
Now that I don’t rack in as much money, my emergency/savings fund is decreasing. This month my emergency fund “paid” for some investments. This is something I will continue doing as my emergency fund is meant to cover my ordinary expenses and investments.
There is some good and bad news in the P2P lending industry currently:
- Grupeer adds 2FA
- Grupeer postpones the secondary market from 2020 Q1 to 2020 Q2
- Monethera seems to have serious managing investors money
- Kristaps Mors continues destructive/constructive criticism of P2P lending platforms
- 7 new loan originators to Mintos
- Mintos releases mobile app for Android and iOS
The different news is interesting for different reasons. Grupeer adding 2FA is good for extra security and protecting individuals funds. However, postponing the secondary market frustrates me a bit, as I value the secondary market more than 2FA.
Monethera needs a bank with “flexible” compliance, whatever that means. Later in the post, they state “Our platform operates in strict accordance with the law and conducts transparent activities.” which makes me wonder why they need “flexible” compliance banking. I am not invested at Monethera and would not recommend it currently.
Kristaps Mors is known for digging deep into different P2P lending platforms. He has now started disassembling TFGcrowd. He speculates that there is 1 restaurant that has which has been dissolved 3 times has gotten 3 loans in each dissolved company. From his findings, TFGcrowd still looks very risky. I would not recommend it.
Mintos has released its app, which has been in beta testing since summer. The app has only the simplest of features. It is clearly a work in progress, but a step in the right direction.
General Comments to Portfolio and Income
February started rather euphoric with the stock market and crypto booming. However, about halfway through the month, everything started plummeting. However, while the general value of my investments decreased in value I gained a good sum of dividends. The dividend will of course be reinvested to accumulate.
Be fearful when others are greedy and greedy when others are fearful.Warren Buffett
Mintos’s recent introduction of “pending payments” has introduced itself to my portfolio. Throughout February I have had about €70-€80 in “pending payments”. From what I see, it seems like another grace period that the loan originators can use to extend their repayment periods.
The pending payments can be finished loans, meaning it does not accrue interest. If loan originators start to use this as a “safe haven” for not paying interest on delayed loans, I will spill my gut.
In January I sold my most expense index funds and I have started purchasing two index funds minoring the S&P500 and dividend companies from S&P500.
Portfolio – February 2020
My investment portfolio is starting to grow again after the Envestio loss. I made a €245 investment in Bitcoin and €245 investment in Litecoin and my monthly index fund transfer of €201. A total of €691 invested in February.
Besides putting more money to work, I have gotten another record month with €49,11 in passive income from investments. The month only looks this positive due to dividends from 2 index funds.
The P2P lending part of my portfolio has performed strangely. My average interest rate went from 11,4% to 7,4%. The explanation is quite simple: All platforms underperformed this month.
Without further ado, let us jump to the numbers!
Total Portfolio Value:
- Portfolio value: €5.781 (+18,6%)
- Net worth: €9.879 (+1,2%)
- Investment income: €49,11 (+51,8%)
- Income from blogging: €217,42 (+63.2%)
- Average interest rate: 7,4% (-41%)
Overall a very possible progress in terms of the overall portfolio. However, the investment income will only be this high in the dividend season (January and February for my current index funds). The more stable part of my portfolio generated less income than the last month. This will be made more evident as we go through the P2P lending platforms.
My portfolio allocation is not fitting my overall risk appetite. I think crypto is having too much of my overall portfolio. Furthermore, I think index funds should be bigger.
However, I have no intention of rebalancing my portfolio currently. I can earn interest on my crypto, and any dividend from index funds are reinvested. Therefore, it might be risky, but at least the assets is working for me.
Furthermore, I believe in the fundamentals of crypto and think it will appreciate with time as it becomes more user-friendly.
From my portfolio graph, it is clear that my investing adventure has thus far been a rollercoaster. At one point my portfolio was about to breakeven with my capital investments (June-2019), from then it went downhill and has stagnated.
Despite I keep growing my interest income portfolio, I would soon hope for better times for my capital investment while I doubt it.
|Month||Portfolio value||Income||XIRR (interest incomes)||ROI (Capital gains)|
Saving rate and Emergency Fund
Having a low income makes it very difficult to save money. Expenses often exceed income, and even though the average spending is kept low, it can be very difficult to live below your means. I am, therefore, very happy that I have managed to spend less than I have earned in February.
However, I expect that my future savings rate will be very minor.
Since Envestio disappeared in January about 1/3 of my income is gone. Envestio was a high-interest income platform, which can also be seen when comparing January/February with May and June 2019. The portfolio was about the same, but I am earning 2/3 of what I did back in May and June 2019.
With that being said, I am not going to invest in new high-risk platforms (like TFGcrowd). If I am going to enter a new platform, it should be because I have very good evidence that the high risk is justified and not another scam.
My overall portfolio progress is slow and steadily moving forward. While all platforms have been underperforming none has disappeared, so I guess we got that going for us.
|Platform||Portfolio value||Interest income||XIRR||Invested|
My portfolio allocation within my P2P portfolio is very skewed towards Mintos. While we know that diversification is a way to be safe, Mintos is the platform I trust the most currently.
Therefore, I don’t see a problem with the allocation. However, I might be looking to rebalance, so that EstateGuru can be a bigger part of my overall portfolio.
- Started investing: Sep-18
- Average interest rate: 11,4%
- Portfolio value: €1373,81 (+0,9%)
- Income this month: €12,75 (-8,2%)
Mintos has performed a bit worse than expected. My interest rates have been climbing rapidly lately, and my weighted loan portfolio on Mintos is 13,55%.
Even though the weighted average interest rate was higher in February compared to January, my interest was lower in February compared to January.
Sadly, I have noticed that the “Pending payments” on the balance overview has been used diligently throughout February. I have noticed that 4 out of 5 loans in the “Pending payments” status is finished loans. This means that Mintos has accepted that the loan has successfully ended and awaits the lending company to transfer money to the investors (my) account. I have loans that have been in pending payments status for over 14 days.
Mintos executives and managers, make your loan originators comply with the f*cking obligations. This is exactly what a grace period is made for! Don’t invent new ways to delay payments. This could really begin to grind my gears.
With all that negativity out of the way – Mintos got an app!
It is easy to use, and there is a quick and easy overview of my income. However, so far it is only the basic functionalities such as income and portfolio size. You cannot invest from the platform, or adjust auto-invest settings, yet.
You can sign up to Mintos by clicking this link. You will get a 0,5% cashback on all of your investments in 90 days.
Mintos Performance Over Time
|Month||Mintos income||Mintos portfolio value||XIRR|
- Started investing: Jan-20
- Average interest rate: N/A%
- Portfolio value: €500 (+0%)
- Income this month: €N/A
EstateGuru is a platform I would like more exposure to. They don’t provide all these silly buyback guarantees, instead, they secure their investments with first-class collateral. First-class collateral means that if the borrower fails to repay the loan, EstateGuru is the first to get money from the collateral before the borrower has to pay anyone else.
Sadly, most of the loans issued on EstateGuru is quarterly paid. This means that I have to wait until June to receive just 1 interest payment from all of my loans.
However, if that flexibility makes the borrower have more success then I see no drawbacks. I am just a cash-flow whore and want to see my money rolling in constantly.
I deposited €500 in late January. Now loans are published constantly. However, since most projects only pay interest quarterly, my graph makes no sense. There is nothing to show yet. However, I am looking forward to investing on EstateGuru.
You can sign up to EstateGuru by clicking this link. You will get a 0,5% cashback on all of your investments in 3 months.
- Started investing: Aug-19
- Average interest rate: 12,18%
- Portfolio value: €424,68 (+0,78%)
- Income this month: €3,29 (-26,7%)
Grupeer has included 2FA security to protect its investors against hacking. If you are on Grupeer, I highly recommend that you active 2FA as it gives you additional security against hacking.
Grupeer delivered a weirdly low income this month. Cannot seem to find an explanation for this one. I will continue to monitor the performance and expect the interest income to increase a fair bit.
Grupeer has stated that they will be releasing their secondary market in the summer of 2020. A secondary market for P2P loans is almost a must, as it provides some liquidity. One of the main downsides of P2P lending compared to stocks is the lack of liquidity. With a secondary market, the loans become a bit more liquid.
Grupeer is young in my portfolio and the long-term performance cannot be measured by one weird month. Therefore, I will continue to monitor for odd interest income.
Grupeer Performance Over Time
|Month||Grupeer income||Grupeer portfolio value||XIRR|
- Started investing: Sep-18
- Average interest rate: 10,28%
- Portfolio value: €76,69 (+0,6%)
- Income this month: €0,47 (-41%)
Yeah, so… Not much to say about Swaper. The most passive platform I have used yet. I have literally nothing to do on the platform but to collect my interest.
You can sign up for Swaper by clicking this link.
Swaper Performance Over Time
|Month||Swaper income||Swaper portfolio value||XIRR|
- Started investing: Aug-19
- Average interest rate: 5,3%
- Portfolio value: €152,42 (+1%)
- Income this month: €0,79 (+0%)
BitofProperty is a new platform that is buying and renting residential buildings. The idea is that you as an investor collect a monthly income, while the buildings apreciate in price. After a couple of years the buildings will be sold for a profit and you have collected income in the period andd will benefit from the apreciation of the buidlings.
However, while the idea is good it is a small platform and the returns are rather low.
The income is the most stable throughout my portfolio so far. However, as I said, the income is low.
BitOfProperty Performance Over Time
|Month||Rental Income||BitOfProperty portfolio value||XIRR|
- Started investing: Dec-17
- Average interest rate: 2,6% (-16,1%)
- Portfolio value: €2.004 (+8,4%)
- Income this month: €4,4 (-6,77%)
So here goes the story of why I invested €490 in Bitcoin and Litecoin this month. If you are unfamiliar with the crypto lending platform called Celsius Network you should check it out. During February they have had a couple of promotions going.
To make a long story short, if I deposited $500 and hold the deposited amount on the platform I will be rewarded with $190 in total. Therefore, I decided to invest €490 (close to $500) to collect $190 at the end of Marts, even though it is paid by my emergency fund.
If you want $10 worth of Bitcoin, you can signup to Celsius Network and deposit $200.
The fundamentals of crypto is so good of an idea, that even if my portfolio will lose $190 in value, I will still get the crypto. Furthermore, I speculate that the crypto market will go on a full bull run again in the future.
I would recommend you to purchase crypto through Binance. They are one of the largest platforms in the world while also having a lot of Altcoins.
Interest Income on Crypto
While this is hard to illustrate in a graph this is the amount earned based on the prices of February. Since the price of my crypto is varying each second, so will my earned interest. So when you compare 2 portfolio updates side-by-side you might notice that thee earned interest is not the same.
Want to lend out crypto for an interest in your favorite cryptocurrencies? Sign up through my link and you will get rewarded with $10 when depositing over $200 worth of crypto.
Crypto Performance Over Time
- Started investing: Jan-19
- ROI: 0,3%
- Portfolio value: €1.147 (+13,1%)
- Dividend this month: €26,55 (+511,7%)
I am happy about my new investment in index funds. Overall they have a lower expense ratio and a historical better yield. Furthermore, both have a better dividend yield.
However, both the new index funds are focused on the S&P500 (American market), which means that I am betting that the American economy will succeed. While I have no doubt it will (again history as evidence), it makes be vulnerable towards local events in America.
Furthermore, I look forward to receiving quarterly dividends from both index funds, instead of yearly. This pleases the cash-flow devil inside me.
How Others in the Community are doing
When looking at some of the big earning bloggers, I think my current forward movement is quite satisfying. I am only motivated to see that so many are earning so much from investing.
I still hope to be on top of the list someday, but for now, I will accept being at the bottom. As long as we are moving forward, I have nothing to complain about.
I have made a new record with my blog income. I am truly grateful that this is something that can grow, and possibly fund my further investments. Each euro earned that I can put to work is a step in the right direction.
I also made a record of the number of users on my website in February. 2.041 visitors (+30%) came by my site. I hoped I helped each one of them with something. I am glad to see my visitor count grow as I want to have people understand the benefits of investing. Furthermore, I also want to convey that investing is not a straight increase at 7% annually as it is often made to.
You can start your own blog using the best host, with WordPress pre-installed. Anyone can start a blog using Siteground. Create a blog for €3,95 (regular price €9,95) and start sharing your investments or other hobbies/interests. You can use my affiliate link here.
Conclusion of February 2020
Many things have happened in February 2020. Some good and some bad. Just remember to stay invested, because time in the market eats timing the market.
Sorry for the long post. Here is a picture of a funny meme.