Portfolio Update: January 2020

ThePoorInvestor Portfolio value and income
This post may contain affiliate links. Investing involves risk of loss

January has been another business month. January is the end of the semester which means I have had a lot of exams this month (only 1 year left to being a Master of Science in Civil Engineering).

January was also the month with my last paycheck from my current job. The project I was hired to do is now concluded and my contract is terminated. Therefore, I will have to find another job or use more time on other things. This will also mean that I will have significantly less money to invest in the future if I do not get me another student job.

There is a lot of talks around the P2P lending investors. Which I totally understand with the current conditions. With Envestio and Kuetzal disappearing the investors seem to have a difficult time keeping the positive mindset. With that being said I have done adjustments to my own portfolio. However, I see a lot of investors on social media blaming bloggers. Financially Independent Mom has closed down her blog as someone (what I presume to be investors who lost money in the Envestio and Kuetzal scam) has threatened her. Furthermore, Jørgen has gotten some blame as he visited both Envestio and Kuetzal. Some investors claim that Jørgen should have figured out that they were a scam. I myself have had some comments on my blog that I decided not to make public.

Whether you are a believer that bloggers are a part of the scam or the individual investor has to do their own due diligence, I can say that I personally only support Jørgen and Financially Independent Mom. While this might be an unpopular opinion you have to remember that bloggers (at least these 2) only write about the journey to financial independence. It is not their fault that you lost money in something you invested in, no matter how hard they have promoted something. It is your responsibility to do due diligence and not blame the blogger if the investments fail or turn out to be a scam. Furthermore, most bloggers clearly state that they potentially make a commission (called affiliate marketing) when you signup on a platform through their links (me included, as stated in the sidebar on your right). I am sorry to tell you, but no matter what blog you use have affiliate links. This is how blogs earn money. I get the ethics of promoting. Hence, if Jørgen or others had known that Envestio and Kuetzal were a scam then it is bad. However, I presume that they did not know about the fraud.

General Comments to Portfolio and Income

Based on the current events in the P2P lending space I have now decided to pull out of Fastinvest 100%. I pulled out of Fastinvest because of the lack of transparency on loan originators. While I know that 3 loan originators (Kviku, CAPITAL SERVICE S.A and eCommerce 2020) you either have to subscribe to their newsletter or be an investor. You cannot find this information anywhere on their website. Furthermore, Fastinvest has not submitted their annual accounts by at least 12 months. While the information provided by Jørgen gathered when he visited Fastinvestor has not pleased me either. However, I chose to bypass the information (Mom and boyfriend have a shady past) and believe that Simona does not have to follow closely related bad paths (Go to Financiallyfree.eu Fastinvest review and scroll to the comment made by “Elf”).

I have sold a quite expensive index fund. It was a fund diversified in growth stocks. However, the yearly expense percent was nearly 2%. Compared to other index funds that are ridiculous. The strategy will be to invest in an index fund in S&P500 and a dividend index fund. Lastly, I would like to into a water index, as water is becoming a commodity like silver and gold. However, I cannot find any water index provided by Nordnet. Therefore, I will explore Degiro and have a review of their platform.

Portfolio – January 2020

I do not think it is an understatement when I say that January was a very tough month for P2P lending. First Kuetzal started having suspicious projects (was found back in mid-December) and then mid-January Envestio disappears. Many investors (including myself) have lost money. However, I don’t take the loss too hard, as I don’t invest money that I am not ready to lose. Also, P2P lending is known to be risky so I anticipated this moment right from the getgo when I made the first deposit into P2P lending. New industries always include huge risks (look at Crypto and blockchain companies, how many of them are actually successful?).

Overall, my portfolio did very well. Sadly, Envestio took €1.313 from my portfolio, and the interest is therefore also lost. However, there is no other way to recover than invest in other more trustworthy platforms. That the name of the game baby!

Total Portfolio Value:

  • Portfolio value: €4.874
  • Net worth: €9.762
  • Income this month: €32,34
  • Income from blogging: €133,21
  • Average interest rate: 12%
Portfolio value and income - January 2020
Portfolio value and income – January 2020

As a result of the Envestio scam, my portfolio has, of course, decreased in value. I will work towards regaining my portfolio size (not necessarily in P2P lending). My current idea is to invest in dividend index funds and P2P lending. Both should return a modest return despite a recession.

Portfolio Allocation - January 2020
Portfolio Allocation – January 2020

My portfolio allocation is still going towards increasing my index fund portion. Therefore, I don’t invest much in P2P lending at the current time. However, I am not looking to exit my P2P lending position, I will simply wait to index funds go to about 20% of my portfolio. My goal is to reach a portfolio of:

  • 45% = P2P lending
  • 25% = Index funds
  • 15% = Crypto
  • 15% = Cash

But for this distribution to become real I need a total portfolio value of approximately €30.000, based on the emergency fund (15% cash). Therefore, I will work slowly towards a higher exposure to the index funds, while saving the remaining or add to P2P lending.

MonthPortfolio valueIncomeXIRR (interest incomes)ROI (Capital gains)
Jan-194691214,9%-26%
Feb-195082367,6%-24%
Mar-195434379,1%-23%
Apr-196080518,5%-21%
May-197081337,9%-12%
Jun-197475315,8%-8%
Jul-1972194010%-12%
Aug-1954704511%-21%
Sep-195585468,0%-24%
Oct-195727438,0%-28%
Nov-19586945,17,9%-28%
Dec-19613744,818,1%-25%
Jan-20547432,3412%-19%

Despite the decrease in my overall portfolio due to Envestio my ROI on capital gains has increased yet another month. Crypto has seen a rather parabolic run. This has increased the value a fair bit, even though I have suffered some losses in P2P lending.

Saving rate and Emergency Fund

In January I actually managed to keep my expenses at a minimum. With the future of potentially not having a student job might have some very hard consequences to my financials. Fortunately, I have good emergency funds, which means I should be able to continue my very modest lifestyle.

Income, expenses and saving rate - January 2020
Income, expenses and saving rate – January 2020

Being able to have such low expenses, will also help me when I no longer have a job if that ends up being the case.

P2P Lending

No big surprises in the P2P lending portfolio. I lost my Envestio portfolio of €1.313 (including the accruing interest) which has resulted in a decrease of both income and portfolio value. Luckily I wasn’t on Kuetzal as well.

While I did exit Fastinvest I got some interest this month from them as well.

P2P Lending Income and Portfolio Value - January 2020
P2P Lending Income and Portfolio Value – January 2020

My P2P lending portfolio is currently not that good diversified. While I am using several loan originators on Mintos I think 52% is too big in a portfolio. However, Mintos is the platform I trust the most, so I wouldn’t rebalance my portfolio with the funds on Mintos.

P2P Lending Portfolio Allocation - January 2020
P2P Lending Portfolio Allocation – January 2020

As you might have noticed EstateGuru and LenderMarket are also in my portfolio now. LenderMarket only has €100 currently and I will be testing them for a while. You can read my review of LenderMarket here. EstateGuru is one of the most transparent platforms along with Mintos. Furthermore, EstateGuru does not provide buyback guarantees, so panic cant make them bankrupt.

I haven’t gotten any interest from either of the new platforms. I expect to receive interest from LenderMarket in February. However, EstateGuru does not have that many loans available. Therefore, I will have to wait until the loan list grows, so I can diversify between the loans.

PlatformPortfolio valueInterest incomeXIRRInvested
FastInvest03,3112,2%408,16
Swaper76,690,8112,6%66,91
Mintos1361,0613,8913,6%1228,883
Envestio
Grupeer421,394,4912,8%400
BitOfProperty153,20950,796,2%140
LenderMarket10000,0%100
EstateGuru50000,0%500
Total2012,3523,2911,5%2243,953

Mintos

  • Started investing: Sep-18
  • Average interest rate: 11,4%
  • Portfolio value: €1.361,06
  • Income this month: €13,89

Mintos has performed the best in terms of interest to date. My interest income grew 38,9% in one month which is absolutely insane. However, I did have a good portion of late loans that were repaid.

I did deposit €117 to Mintos this month. However, it was too late in the month to gain anything from (besides the common months), therefore those €117 did not have an impact on my increased income. However, I hope that Mintos will keep the increased interest rates.

Mintos does not seem to be affected by the Envestio and Kuetzal scams at all. Looking at Mintos statistics January was their largest month ever on funded loans.

Mintos Income and Portfolio Value - January 2020
Mintos Income and Portfolio Value – January 2020

I am sticking to my Mintos investment strategy My average portfolio interest on Mintos is back at 13% after the winter months with low-interest rates.

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

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%
Jul-1910,82961,113,66%
Aug-1913,451174,5516,79%
Sep-1911,881199,8212,14%
Oct-199,281209,19,28%
Nov-1910,861219,9610,78%
Dec-19101229,969,84%
Jan-2013,891361,0613,55%

EstateGuru

  • Started investing: Jan-20
  • Average interest rate: N/A%
  • Portfolio value: €500
  • Income this month: €N/A

I deposited €500 in late January. Currently, there are only 2 loans available. Therefore, I have included no chart for EstateGuru. There is nothing to show yet. However, I am looking forward to investing on EstateGuru.

Grupeer

  • Started investing: Aug-19
  • Average interest rate: 12,18%
  • Portfolio value: €421,39
  • Income this month: €4,49

Grupeer continues to deliver a stable return. The balance of development and business loans secures high-interest rates and with the buyback guarantee on defaulting loans, there is no fear of bad borrowers. So far the interest has been between €4-€4,5 which gives an annual return between 11,5%-13%.

Grupeer Income and Portfolio Value - January 2020
Grupeer Income and Portfolio Value – January 2020

To rebalance my portfolio I could easily look towards funding Grupeer some more.

You can sign up on Grupeer using my sign up link.

Grupeer Performance Over Time

MonthGrupeer incomeGrupeer portfolio valueXIRR
Aug-190,43400,431,29%
Sep-193,56403,9910,57%
Oct-194,46408,4513,10%
Nov-193,92412,3711,41%
Dec-194,53416,913,04%
Jan-204,49421,3912,79%

Fastinvest

  • Started investing: Sep-18
  • Average interest rate: 12,9%
  • Portfolio value: €0
  • Income this month: €3,31

I stated earlier that I withdraw fully from Fastinvest. This is still true and while I withdraw all my funds, I still got some interest up until the day I sold all my loans. From what I can see on social media quite a lot has withdrawn from Fastinvest, and I am impressed that they have managed to fulfill the buybacks and the withdraws. This brings (some) confidence from my point of view to Fastinvest. However, I will not trust a company offering to buyback any loan right on the spot. If the market was to panic and all investors were to sell their loans, Fastinvest has to have the same amount of cash to withdraw to the investors as they have invested in loans. Which is just unrealistic.

Fastinvest Income and Portfolio Value - January 2020
Fastinvest Income and Portfolio Value – January 2020

With all that being said, Fastinvest has been a good addition to my portfolio yielding an average of 12,9%. I have no real complaints other than missing information on loan originators and cash drag in May and June.

You can invest at Fastinvest by signing up here.

Fastinvest Performance Over Time

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%
Jul-194,86454,5313,0%
Aug-195459,5313,2%
Sep-195464,5313,1%
Oct-194,71469,2412,2%
nov-195,09474,3313,0%
Dec-194,83479,1612,2%
Jan-203,310

Swaper

  • Started investing: Sep-18
  • Average interest rate: 10,28%
  • Portfolio value: €76,69
  • Income this month: €0,8

Swaper is a good passive platform in my portfolio. It is only 3% of my total portfolio. However, I am never adjusting or looking at the platform. Swaper is so passive and there is literally nothing to do, other than check that I collect the interest on a monthly basis. For that reason, only I could be tempted to invest some more in Swaper. Furthermore, Swaper is such a small part of my portfolio, and I have used it in more than a year now.

Swaper Income and Portfolio Value - January 2020
Swaper Income and Portfolio Value – January 2020

However, I am not sure I will increase Swaper as the next platform as I feel consumer loans are a big part of my portfolio currently.

You can sign up for Swaper by clicking this link.

Swaper Performance Over Time

MonthSwaper incomeSwaper portfolio valueXIRR
Sep-1866,91
Oct-180,367,215,38%
Nov-180,8568,0615,18%
Dec-180,5168,578,99%
Jan-190,4268,997,35%
Feb-190,6669,6511,48%
Mar-190,4670,117,93%
Apr-190,7370,8412,49%
May-190,7371,5712,37%
Jun-190,471,976,71%
Jul-191,1573,1219,17%
Aug-190,173,221,64%
Sep-190,4473,667,21%
Oct-190,8874,5414,34%
Nov-190,5475,088,69%
Dec-190,8175,8912,95%
Jan-200,876,6912,65%

BitOfProperty

  • Started investing: Aug-19
  • Average interest rate: 6,25%
  • Portfolio value: €152,42
  • Income this month: €0,79

BitOfProperty is a small platform and there is not much happening on the platform. In November it failed to fund a property due to lack of investors. I fear that if the platform doesnt get more investors that it will ideal until the current properties are due for sale and close down.

BitOfProperty Income and Portfolio Value - January 2020
BitOfProperty Income and Portfolio Value – January 2020

The concept of BitOfProperty is very cool, and I like the idea myself. While the yield is much lower than on other platforms, I value it safer as the properties are bought and rented to tenants.

You can sign up at BitOfProperty and start purchasing real estate yourself.

BitOfProperty Performance Over Time

MonthRental IncomeBitOfProperty portfolio valueXIRR
Aug-19150
Sep-190,57150,574,56%
Oct-190,53151,14,22%
Nov-190,53151,634,21%
Dec-190,7895152,41956,25%
Jan-200,79153,20956,22%

Cryptocurrency Portfolio

Crypto has been on a parabolic run this month, gaining almost €600 in just this one month. I would hope that the raise of crypto continoues. When looking at the halving of Bitcoin, it historically should continue to increase. But let us see crypto is very volatile so it might not follow history at all.

Crypto Income and Portfolio Value - January 2020
Crypto Income and Portfolio Value – January 2020

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.

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.

MonthCrypto valueDividendXIRRROIInvested
Jan-195140,30,6%-79%2459
Feb-197060,50,9%-71%2459
Mar-197894,36,5%-68%2459
Apr-199402,63,3%-62%2459
May-191.8122,51,6%-36%2825
Jun-192.0600,90,5%-32%3037
Jul-191.7496,04,1%-42%3037
Aug-191.4598,26,8%-52%3037
Sep-191.2985,45,0%-57%3037
Oct-191.3334,84,3%-66%3037
Nov-191.2054,74,6%-67%3037
Dec-191.2784,54,2%-63%3037
Jan-201.8484,723,1%-50%3037

Index Funds

  • Started investing: Jan-19
  • ROI: 11,9%
  • Portfolio value: €1014
  • Dividend this month: €0,77

This month I sold 1 of my 3 index funds. The funds had high expenses and my evaluation is that long term I can find better performing index funds. I did sell the fund at 127,4 DKK per share, with an average purchase price per share of 112,44 DKK. I, therefore, got a 13,3% profit from the deal. The portfolio value is also not accurate as the sale of my index fund will be reinvested into a new index fund.

Furthermore, the portfolio value is not correct. As I sold my shares in the index fund I have around €500 (including my monthly deposit) in cash in my broker deposit. Every month the 5th I have an automated purchase that invest commission free in some preselected index funds. Therefore, it looks like the portfolio value has decreased in the monthly view. But on February the 5th it will purchase for about €500 in index funds.

Lastly, I have gotten a dividend once again. This time I got a dividend from the index fund I just sold. While it was just €4 it is still something that can be reinvested and compound.

Index Funds Portfolio and Dividend - January 2020
Index Funds Portfolio and Dividend – January 2020
MonthIndex fundsDividendROI
Jan-1931080
Feb-19395130
Mar-1962800
Apr-1964600
May-1962600
Jun-1965407,6%
Jul-1966808,1%
Aug-1966509,0%
Sep-1973709,0%
Oct-1980709,3%
Nov-191036011,3%
Dec-1911920,7712,1%
Jan-2010144,3412%

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.

Blog Statistics

From the previous month’s events with Envestio and Kuetzal I have become aware that bloggers are some kind of burden. We are not supposed to make any money from our writing and efforts to help the average investor. Personally I blog as it will challenge myself to learn more about the investments I make. Furthermore, I realize that not everyone has the time that I have to research different things. As time goes by and I learn more and more I become better at the due diligence, which ultimately should bring more value to the readers. If I can earn a modest commission for something I will gladly do so. That is not to be said that I will use unethical promotions or marketing to get everyone to sign up. I simply hope that IF you are going to sign up for a platform that you use my affiliate links, that makes me able to put more time in the blog.

Blog Income - January 2020
Blog Income – January 2020

If the general attitude is that bloggers are pigs that should be slaughtered you will no longer see my blog income. However, I value transparency just as much as I advertise the P2P lending platforms should implement more of it.

With that out of my system, I can tell that I had more viewers than ever (hurra!!). I had about 500 visitors more than the previous two months.

Blog visitors - January 2020
Blog visitors – January 2020

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 December 2019

It is no secret that a lot has happened in P2P lending the past month. There are lawsuits going against Kuetzal and Envestio. I have personally decided to stay out of a lawsuit. I wish we could throw the responsible behind bars and get justice to the victims.

The future investment-wise is unclear as I will no longer have a job.

ThePoorInvestor

I am ThePoorInvestor and I am on a financial independence journey. I am investing in P2P-lending to create a high cash-flow return. I disclose my income, expenses, investments and everything financially relevant. It is all for you to see, I have nothing to hide. I have invested in a total of four different investment types throughout my 2 years of investing.

6 thoughts on “Portfolio Update: January 2020

  1. It will take you over 2 years regain your losses from Envestio… You seem very ok with your losses. Is your portfolio even real?

    1. Hi Steve,
      You are absolutely correct. It will take me a long time to recover the losses. I have the mindset that I can either accept the loss or cry like a baby. If I had to use as much time as other investors whining about the losses I wouldn’t get anything else done. Life has its ups and downs, and this was one of the downs. That is life.
      To your next concern. My portfolio is very real. In my Mintos review you can see screenshots from my portfolio under the headings “Experience Investing With Mintos” and “Experience Investing With Mintos”

      Best regards,
      Jonas

  2. Hi Jonas,

    I just stumbled upon your blog earlier this week, and have done an extensive read through. It has very extensive information, and you seem a very grounded person. I hope you will continue writing the blog, so I am able to learn a little extra – as investing in these platforms is my next step to go. If I ever were to sign up for any platform that’s mentioned in your blog, I will definitely use one of your affiliate links. That could be at least the token of appreciation you receive, for me being able to getting my head around these new aspects like p2p lending and such.

    How’s your opinion on Crowdestate? I know you wrote a review about it, but do you see yourself soon to be investing with them? Secondly, how have you or how will you organise your taxes? Over all profits you will have to pay capital gains and income tax in Denmark? You are not willing to for instance start any LLC in for example Bulgaria? To keep a bit more from your profits?

    Do you have any other recommendations, for platforms related to real estate? I am digging into it more and more, as it’s a longer term investment for me.

    Looking forward hearing from you!

    Jay

    1. Hi Jay,
      Thank you for your kind words. I appreciate that you like my content, and it is helping you.
      First, I will say that I will not be investing in Crowdestate in the near future. I see from other bloggers (You can search for financiallyfree.eu to see his experience) that currently, loans are starting to run late, which is something I don’t want as an investor. I will wait until we know if Crowdestate is good at collecting the debt from defaulting loans, and how well they make borrowers pay on time. You can go to https://crowdestate.eu/statistics and at the bottom of the site, you can download their late loan book. I can tell you that Crowdestate currently has 17% late loans, from 220 project, 39 are late (and I can’t find any statistics on the default rate). What I would recommend instead for real estate, is EstateGuru (I am no financial advisor, I will not be liable for any financial losses you may encounter). In contrast, EstateGuru has 2,5% late loans and 3,2% loans that are in default. While the overall return is smaller I think it is significantly safer.
      In regards to taxes, I will just have to suck it up and pay the capital gains tax here in Denmark. I did some estimates a while ago, and the costs of investing through a company will eat almost all the profits. Therefore, I will wait to I actually start making some serious money (which makes it financial “responsible” to start an LLC (or another company type)). I do realize that the compounding effect will be bigger if I was only paying 25% rather than the current 45% in taxes. But then again, the gains I have is not big enough to cover the costs of a company.
      My advice would be to make proper due diligence of the platforms. Other bloggers and I are only a help, we are not the only truth. Jørgen from Financiallyfree.eu visited both Envestio and Kuetzal and saw no indications that they were a scam. Sadly, it turned out to be scam, and there was no way Jørgen could have seen that, even though he visited them. They could have put on a very good show to make them look credible. My point is, we bloggers don’t always see everything. So don’t put your trust 100% to what we write and invest. My second advice is that you must remember that P2P lending is a new industry and therefore very risky. Currently, if I was to start in P2P lending I would invest with Mintos and EstateGuru. Simply because they provide the best transparency over the other platforms.

      I hope it answered your questions thoroughly.
      Best regards,
      Jonas

  3. Hi Jonas,

    I know you are following the community and more bloggers. Now with regards to Enevestio, I also follow Jørgen Wolf’s blog (financiallyfree.eu) and I found him to be the best informed about the Envestio platform.
    In his latest post about the portfolio for December, he said that he traveled to Riga on December 16-18th and even met with Eduard Ritsmann, COO of Envestio.
    Considering the above I have been waiting for an update from him considering that he would have one of the most endorsed opinions about Envestio.
    Curious is that he also gives no sign of life about the same period as the volatilization of Envestio.

    For me, this coincidence is at least strange.

    What do you think?

    Thanks,
    Vasile

    1. Hi Vasile,
      I hold no grudge towards Jørgen. Considering Envestio was a scam, they could, in theory, have used all the money deposited on the platform to set up a facade to make them look legitimate. Unfortunately, I was endorsing Envestio myself, as I thought they were legit. Sadly, they turned out to be a fraud. It cannot be blamed on the bloggers. They could have used millions to make the marketing seem good and lure more investors in through the bloggers. This could not have been caught by the bloggers if envestio has paid companies to say that they were during business with envestio, even though they weren’t.
      I agree that it looks like a specular coincidence, but I don’t think Jørgen has anything to do with this. Yes, he has made a lot of money referring new investors. But that is how bloggers make money. Most of us has it writing in the sidebar, at the top of all posts, in our disclaimer, and so forth.
      I hope it was a satisfactory response, you are welcome to continue the debate.

      Best regards,
      Jonas

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