What Alternative Investments are Out There?
I spent months researching alternative investments. Finally, a few weeks ago, I came across Lending Club. You can take as little as $25 and lend it out to other people. What intrigued me is that this allows you to form your own tiny bank of sorts. You read each potential borrower’s profile, including their credit score and history. They tell you why they want a loan, what interest rate they have agreed to pay, and how much they wish to borrow. Just like a bank, you can then decide whether that borrower gets your $25 (or whatever you’ve decided to lend.) But the best part is this: Just like a bank, you get to collect interest on the loans you fund — from 8% to 16%. Lending Club claims that a well-diversified portfolio should earn you an average return of 9.05%. Since CD rates have dropped so dramatically, Lending Club seems like a viable option for diversifying your portfolio. But was Lending Club really worth it? I funded my account with $100 and dug in deeper. To sign up (which is fre
