Niall’s virtual diary archives – Sunday 15 December 2019

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Sunday 15 December 2019: 17:32. A quick update on my Mintos investments – as predicted, my emergency divestment from ExpressCredit after their severe ratings fall on impacted earnings for a while until the replacement loans began to pay out. I was impacted for about two months, entirely avoidable had I sold my ExpressCredit loans more cleverly. But then monthly returns came back to somewhat normal-ish, albeit lower as nobody pays as well as ExpressCredit did:

MonthAnnualised return for each month
August 201910.38%
September 201911.83%
October 201914.00%
November 201915.22%

That’s still a very healthy return reflecting the substantial risk one takes in investing in subprime debt. My pension, as a comparator, makes about 7% per annum, but earnings there are tax free, and earnings on Mintos are treated by the tax man like bond income i.e. as normal income. I’ve more than earned enough from Mintos in 2019 to cover the loss to inflation of my cash reserves, which was the whole point of investing with Mintos at all originally. However, at my marginal tax rate after work income of 52%, half my Mintos income is lost to tax, and what remains does not entirely cover loss to inflation of my cash reserves.

Still, it’s better than nothing!

#mintos #p2p-lending

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