p2p lending etf investments december 2020

With the insanity forever known as 2020 finally behind us, welcome to my investment income update for December 2020!

In today’s post, we’ll look at the performance of all of my investments in P2P lending and the dividend distributions I received from my ETFs last month.

I reorganized the way I display and mention each peer to peer lending platform from largest to smallest investment, as I figured that likely made more sense than the random order they were in before.

Ok, let’s begin!

P2P Lending Income – December 2020

PlatformIncomeIRRInvestedValue
Mintos97,44€12,65%8.437€10.331€
Crowdestor130,48€9,90%6.200€6.986€
Lendermarket39,70€13,84%3.000€3.442€
Bondora Go & Grow17,80€6,69%2.901€3.217€
Viainvest26,17€12,18%2.500€2.797€
Iuvo Group25,55€13,44%1.857€2.772€
EvoEstate0€0,55%730€733€
EstateGuru1,47€3,50%500€502€
Mintos I&A0,97€10,28%75€180€
Total339,58€26.200€31.010€*

*includes 110€ profit from Swaper (exited) and 60€ exit fee on Wisefund

PlatformInvestedValue
Envestio2.807€?*
Monethera1.028€?*
Grupeer2.825€?*
Total6.660€TBD*
*Counted as a loss for now, I’m hoping to recover some funds. See links for details.

At 339,58€, my December income from P2P lending was 52% higher compared to the month before. We’ll get to the reasons in a moment!

Dividend Income

P2P Lending wasn’t the only income I received from investments in December. On December 31st, my wife and I received 172,46€ in dividends from our main ETF, the Vanguard FTSE All-World (ISIN: IE00B3RBWM25).

Some of our brokerage accounts added the funds a few days later, but for the sake of simplicity, I’ll still count all of the dividends as received at the same time.

The ETF distributes dividends every three months.

First off, the market value of ETFs is volatile, meaning it can go up or down, so dividends are not “free bonus money”.

And in many countries, it can be more tax-efficient to buy an accumulating ETF – an ETF that reinvests dividends into the fund right away instead of distributing them to investors.

That being said, I’m confident that our globally diversified ETFs average dividend yield of 2% per year is a safe amount I could spend and not reinvest if needed, without worrying that I’m reducing the value of my ETFs over the long run.

It’s far below the 4% “safe withdrawal rate” that is often mentioned in the financial independence community.

That is why I’m personally including the ETF distributions as income. It also certainly doesn’t hurt that seeing this number grow over time motivates me to keep investing!

Taking that into account, let’s have a look at what my total monthly investment income looked like.

Monthly Income

p2p lending etf income december 2020
  • Total Investment Income (Dec. 2020): 512,04€ (+289,07€)

Tracking my monthly average income is probably a better way to see if things are moving in the right direction, so here is where we’re currently at:

Over the last 10 months, I earned a total of 3.639,49€ from my investments in P2P lending and from dividends via my ETFs.

That translates to an average of 363,95€ per month.

With this average, I’m at 24,26% of my monthly ‘passive’ income goal, which is 1.500€/month.

Ok, let’s have a look at all my peer to peer lending platforms one by one.

Mintos

mintos p2p returns december 2020
  • Income (Dec. 2020): 97,44€ (+15,12€)
  • IRR12,65%
  • Invested since: 27.09.2018

My funds in recovery increased by 7,73€ on Mintos, so I haven’t seen an improvement in that regard.

One positive thing that I noticed is that a lot fewer of my currently invested loans are late compared to a few months ago (15,5%). That might be due to my focus on loan originators with a good rating.

Due to Creditstar currently offering higher interest rates on its own platform Lendermarket and the fact that I already have over 3.400€ invested in their loans there, I decided to remove the loan originator from my Auto Invest on Mintos.

That should improve my overall diversification a bit as well.

mintos p2p december 2020

Crowdestor

crowdestor p2p returns december 2020
  • Income (Dec. 2020): 130,48€ (+98,04€)
  • IRR9,90%
  • Invested since: 03.04.2019

Crowdestor was one of the main reasons why my investment income was significantly higher in December.

I received interest payments from 11 projects, one full loan repayment and several partial repayments. Hopefully the latter ones will turn into full loan repayments soon as well.

Because of the Christmas promotion throughout December, part of my monthly income (21,34€) arrived in the form of bonus payments from the funds I reinvested.

The percentage of loans that are late dropped a bit in my Crowdestor account, which I was happy to see. Here are my numbers as of January 1st:

  • Active Investments: 42
  • Late loans: 16
  • Late (%): 38% (-6%)
crowdestor p2p december 2020

Lendermarket

lendermarket p2p returns december 2020
Note: Feb 1 includes the 1% Cashback
  • Income (Dec. 2020): 39,70€ (+2,40€)
  • IRR13,84%
  • Invested since: 21.11.2019

Some people have mentioned concerns because Creditstar, the loan originator group offering the loans & buyback guarantee on Lendermarket, used a small auditing firm to confirm its financial statements over the past few years.

I reached out to them about this and received a confirmation that they will be using KPMG, a world-renowned auditing firm, for their next financial statement.

Lendermarket also increased the interest rate for short-term loans from Spain and Poland to 16,6% per year and loans from Estonia to 15,1%. The interest rate for loans from other countries seems to have remained at 14%.

In the past, other platforms like Mintos had higher interest rates up to 17% for some short-term loans from Creditstar, but now it seems like they want to give investors an incentive to use their own platform, by offering them the highest rates available for their loans.

Which makes sense, since they have to pay commissions to Mintos when people invest into their loans there instead of Lendermarket.

Regarding questions about late loans, you should expect a higher percentage of loans that are late when you primarily invest into short-term loans from Spain and Poland.

My own Lendermarket account contains a large number of loans with longer durations of up to 4 years from Estonia and Finland, which probably explains why 77,67% of them are currently paying on time:

lendermarket p2p december 2020
  • Get 1% Cashback on your investments on Lendermarket after 60 days via my link.

Bondora Go & Grow

bondora go and grow p2p returns december 2020
  • Income (Dec. 2020): 17,80€ (+0,67€)
  • IRR (incl. withdrawals): 6,69%
  • Invested since: 01.09.2018

My Go & Grow account keeps chugging along as usual and same-day portfolio withdrawals seem to be working just fine according to other investors.

On less positive news however, Bondora recently limited the max. amount that can be added to Go & Grow on a monthly basis to 400€, due to lower loan funding volumes right now.

If you’re an existing Go & Grow user, you likely don’t care too much, bit it makes it a lot harder for new investors to get their funds invested on the platform.

bondora go and grow p2p december 2020
  • Get a 5€ Bonus on Bondora when you sign up via my link and invest 10€ or more.

Viainvest

viainvest p2p returns december 2020
  • Income (Dec. 2020): 26,17€ (-1,06€)
  • IRR12,18%
  • Invested since: 11.10.2019

There were no major news from Viainvest last month. That’s just fine with me, as I like the platform and have no complaints so far.

viainvest p2p december 2020

Iuvo Group

iuvo group p2p returns december 2020
Note: Oct/18 shows the refer-a-friend bonus I received when I started
  • Income (Dec. 2020): 25,55€ (+0,25€)
  • IRR13,44%
  • Invested since: 05.10.2018

Iuvo Group published an update regarding the problematic Polish loan originator CBC (previously KFP):

A request was submitted in the court in Poland to initiate a procedure for declaring insolvency as well as a request to initiate a procedure for restructuring and rescuing the company. In addition, the company was imposed precautionary measures to prevent them from disposing of their property to the detriment of their creditors. A court official has also been appointed to oversee CBC/KFP. We are expecting the court in Poland to decide which of the two procedures will enter into force in order to preserve the interests of the company’s creditors on the basis of an analysis of the company’s assets and liabilities.

Source: Iuvo Group (Blog)

I have around 428,60€ worth of outstanding CBC loans, some of which are visible on my account below (under ’60+ days delay’). Hopefully it will be resolved soon.

I’ve had no issues with loans from other lending companies on Iuvo Group.

iuvo group p2p december 2020
  • Use this form to send me a referral request and get a Bonus of up to 1,5% on your investments on Iuvo Group

EvoEstate

evoestate p2p october 2020
  • Invested since: 03.02.2020
  • IRR0,55%

I have yet to receive interest from my three loans on EvoEstate, as all of them only pay interest at the end of their loan term. I should receive the first payment in February.

  • Get 0,5% Cashback for 6 months on your EvoEstate investments via my link.

EstateGuru

estateguru p2p returns december 2020
  • Income (Dec. 2020): 1,47€ (+0,72€)
  • IRR3,50%
  • Invested since: 12.10.2020

I’m still testing out EstateGuru right now. While I like their asset-backed loans and their track record so far, I’m not a fan of their Auto Invest limitations.

Right now, I’d rather spend my time working, which earns me more than the interest I could earn after first manually inspecting and then investing 100€ into each loan I choose on EstateGuru.

estateguru p2p december 2020
  • Use this link for a 0,5% Bonus on EstateGuru for the first 3 months.

That’s it for 2020!

Now we can finally close a ridiculous year that few of us will likely ever forget.

Thank you for reading my latest monthly income update. I hope you all had a good start into 2021 as well!

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Important Resources

  • My Investor Toolkit – A list containing all of my current investments in P2P Lending, the brokerage accounts I use to buy ETFs, my speculative investments in digital currencies and my free bank accounts. For those that are interested, I also added the tools I use for blogging and YouTube.
  • P2P Bonus Offers – A collection of all the best, currently available bonus and cashback offers in the P2P Lending space. Regularly updated.


Disclaimer: Investing involves risks of losses. You should always do your own research before investing into anything. Also, some of the links are affiliate links, which help support me, the website & YouTube channel. I only link to services I use myself, none of them are sponsored.

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