Lazy man over at Lazy Man and Money has been dabbling pretty heavily in Prosper. So far, he’s seen a 23.55% return on his money - that’s fantastic. So why don’t I have a Prosper account set up yet? Well, for starters, it scares the living crap out of me. Lending money to people I don’t seems extraordinarily risky in my eyes. Granted, the returns are potential huge, but I have a strong fear of losing my investment completely.
With any investment, there’s always that same risk, of course. I think I may follow in Lazy Man’s footsteps and take a gamble on Prosper. I’m going to take baby steps, however, and invest very slowly at the beginning. If I see solid returns, then I’ll consider funelling more money that way. Is anyone else using Prosper, and if so, how is it working out for you?
2 comments ↓
I think the key is to diversify. When you do that Prosper isn’t much different than a mutual fund of small companies. Some may go out of business, but others do well. On average, you end up doing fairly well. It is a bit scary when someone doesn’t pay you back, you just have to focus on the big picture.
Hey Lazy Man, thanks for swinging by.
I think you’re right about diversifying.. that seems to be the key to any investment, and Prosper isn’t any different. I’m going to read up a little bit on the program and policies,and I may begin a small investment in February to test the waters.
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