www.1Hour-Advance.com Investing with peer to peer lending is a fairly new concept,
providing many benefits for the investor. This type of investing has
become an alternative way to invest money because banks are no longer
involved, giving the investor a better return on their money. Here are
the top 5 reasons why someone would want to invest their money using
peer to peer lending.
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1. Knowing exactly where your money is being invested
Peer to peer lending, or p2p lending for short is gratifying because you are investing in other people. Your money is being used by other people who are trying to improve their lives, whether it is through getting out of debt, funding a business or using that money to improve their home. Each borrower has a story, and based on that story, you can choose a borrower that you can relate to or just want to help out.
2. Begin investing with just $25
If you have at least $25 to invest, then you can start investing in peer to peer lending. This is unlike many banks and mutual funds, where you have to invest hundreds or thousands of dollars to get started. With p2p lending, you can invest in lower increments of money, getting you an investment account a lot sooner.
3. CD's remain to pay less than 3%
Even though CD's are protected and insured by the FDIC, you are likely to lose money due to inflation if you were to get a five year CD right now. Currently, according to bankrate.com, the maximum return is 2.61%, with 2% for a three year CD. If you are trying to grow a nest egg, investing through a CD will not be very effective.
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4. You get true diversification in your investment portfolio
It has been said by financial planners that diversification is an essential aspect to investing. P2P lending helps provide just that. You are investing in a complete different asset class, consumer credit, as asset class that is not available in most traditional investments. In 2008, almost every asset class lost value, making investing traditionally a bigger risk. With peer to peer lending you are adding more diversification to your investment portfolio.
5. You don't have to deal with Wall Street or banks
We all know how the big banks and financial institutions on Wall Street were the main cause of the financial crisis that everyone has been affected by. By using peer to peer lending, you can completely avoid using these institutions and get a better return on your money. Your money is in better hands with p2p lending, rather than in the hands of institutions that made poor decisions and showed a high level of greed with other's hard earned money. With p2p lending you are in control.
1. Knowing exactly where your money is being invested
Peer to peer lending, or p2p lending for short is gratifying because you are investing in other people. Your money is being used by other people who are trying to improve their lives, whether it is through getting out of debt, funding a business or using that money to improve their home. Each borrower has a story, and based on that story, you can choose a borrower that you can relate to or just want to help out.
2. Begin investing with just $25
If you have at least $25 to invest, then you can start investing in peer to peer lending. This is unlike many banks and mutual funds, where you have to invest hundreds or thousands of dollars to get started. With p2p lending, you can invest in lower increments of money, getting you an investment account a lot sooner.
3. CD's remain to pay less than 3%
Even though CD's are protected and insured by the FDIC, you are likely to lose money due to inflation if you were to get a five year CD right now. Currently, according to bankrate.com, the maximum return is 2.61%, with 2% for a three year CD. If you are trying to grow a nest egg, investing through a CD will not be very effective.
4. You get true diversification in your investment portfolio
It has been said by financial planners that diversification is an essential aspect to investing. P2P lending helps provide just that. You are investing in a complete different asset class, consumer credit, as asset class that is not available in most traditional investments. In 2008, almost every asset class lost value, making investing traditionally a bigger risk. With peer to peer lending you are adding more diversification to your investment portfolio.
5. You don't have to deal with Wall Street or banks
We all know how the big banks and financial institutions on Wall Street were the main cause of the financial crisis that everyone has been affected by. By using peer to peer lending, you can completely avoid using these institutions and get a better return on your money. Your money is in better hands with p2p lending, rather than in the hands of institutions that made poor decisions and showed a high level of greed with other's hard earned money. With p2p lending you are in control.