Hello People,
I’m interested in investing through Prosper and would like to gather some reviews and insights from those who have experience with the platform.
I found Prosper’s tax disadvantage to be extraordinary, leading to a significant amount of money owed in taxes at the end of the year, even after setting up extra withholdings. Despite this, I was still net positive at 6% after taxes until 2022. However, in 2022, my account lost as much as it made, and my taxes were still around $900 a month. This is a potential issue with an investment product that has such a tax disadvantage.
Considering Prosper for investing? It can be a good option, but it’s not perfect. Prosper lets you invest in small loans to people, potentially earning decent returns. However, keep in mind there’s a risk of borrowers defaulting on the loans, so you might not get all your money back. Some users also find Prosper’s fees a bit high. If you do choose Prosper, diversifying your investments across many loans can help reduce risk. Also, check out other peer-to-peer lending platforms to compare rates and features.
I have roughly $10,000 in play money there. Over the last three years, I’ve earned somewhat more than 10% year on year. I do a lot of screening and am very selective about who I loan to.
Having said that, Prosper has gradually reduced the methods available for screening, as well as some of the aspects that made it unique. I’m not sure if I’ll continue to invest.