Lending Club Investing

Peter Anderson of Bible Money Matters recently published a post about his success with Lending Club Investing, which is an online form of peer-to-peer lending. It's a good read. Personally, I would not join up for Lending Club Investing. The best case scenario with peer-to-peer lending is that you will earn 10-12% returns on your investments. Of course, the worst case scenario is that you never see any of your money again. If I want to get a 10-12% return on my money, I'm going to invest in Coca-Cola, Pepsi, Berkshire Hathaway, Exxon-Mobil, Johnson & Johnson, Clorox, etc. If I'm going to aim for low double digit returns, I'm going to be more comfortable betting my money on the fact that these mega-cap companies are less likely to default or go bankrupt than someone I might find in peer-to-peer lending websites. It's not only the returns you receive from your investments, but the Risk-Adjusted Returns that you receive from your investments, and I would feel much safer trusting my hard-earned dollars to the companies that I listed above. But be sure to check out Mr. Anderson's article, he offers a perspective that is worth observing: http://www.biblemoneymatters.com/lending-club-investing-returns-above-10-5-as-high-risk-loans-stay-current/ .