Seeking a Great Return on Investment?
What are three things you would love to see when seeking a great return on investment? For many, the answer would be 1) a low starting fund entry point that 2) yields guaranteed high returns, which 3) preferably delivers overnight.
Oh, yes...and the secret of perpetual motion and location to the Fountain of Youth would be nice, too.
Joking aside, that golden ROI (return on investment) triangle certainly would be nice—if it existed legally. But since we're operating in the real world of investment, let's think pragmatically.
The Goal: A High Return on Investment
When it comes to investing wisely, patience can indeed be a virtue. Smaller, prudent gains are the steps that longtime investors often seek, forgoing any dubious win big/lose all "sure things."
Incremental gains every year—even if they aren't in the double digits percentage wise—are still earning you money. This is why many investors still favor blue chip stocks, even if they may lack the excitement of the latest fickle fad.
And in effect, the slow climb upwards can yield the high return on investment you've been seeking. It may just take a little longer to get there.
Wall Street and the Day Trader Stock Return on Investment
Day traders are people who, as the title implies, buy and sell on the stock market in the same day, often hoping to arbitrage their way upward economically. These investors can either work for an institution, or go it alone and play the market by themselves. It's a lifestyle that can provide quite a financial (and emotional) rollercoaster.
Most investors probably aren't looking for this level of commitment. These are the people we see on the street every day. They simply want their money to grow—effectively avoiding the Bears vs. Bulls ROI battle on Wall St. as much as possible. Perhaps this is you. If so, another investment avenue now exists, thanks to the power of the Internet.
Prosper: Offering the Best of Both Investing Worlds
As we said, the crux of understanding return on investment and what it really means often lies in embracing patience. You can add diversification as well. As it turns out, some moth-eaten clichés we've heard since childhood about good things coming to those who wait, while avoiding placing all of our eggs in one basket, can provide good guides for investing, too.
Prosper is not the platform for investors looking to make millions on return by the end of the year. Rather, we provide you with the financial tools to make decisions that are right for you and earn a great rate.
For those who prefer the hands on approach of Wall Street, you can browse through our pool of borrowers and search for results based on what's significant to you. This can be a listing's Prosper Rating, keywords that determine the loan's intent, or more personal details about the borrower (e.g., "firefighter in NYC").
This element provides a very important social aspect to Prosper that's missing on most stock market investments, which are faceless and provide very little, if any, information on how your money will be used. Here, you can help real people.
And for those of you who prefer investing to take more of an easy "mutual funds" approach, we offer our Portfolio Plans. After choosing a ready-made model that meets your goals, your plan will bid automatically. We offer three model plans (Balanced, Moderate and Aggressive) to get you started.
The world of investing can offer many rewards, if it's approached from the right perspective. At Prosper, we intend to provide the opportunities and resources that can help you reach your investing goals of a great return on investment.
How Does Prosper Work?
Prosper lenders bid on listings and purchase Prosper Notes. Each Prosper Note corresponds to a listing which sets forth the relevant details about the loan, including loan amount, price, yield percentage, and borrower information. Any payment from a Prosper Note is dependent on payments Prosper receives on the corresponding loan.
The Notes that correspond to specific borrower listings are offered pursuant to the prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes as well as other information about us and our platform in the prospectus.
Prosper Notes are risk bearing and speculative investments for suitable investors only. If a borrower fails to make payments on the corresponding borrower loan related to your Prosper Note, you will not receive payments on your Note. There is the potential that you will not receive any payments on a Prosper Note. You should review the Prospectus before bidding on loans. Not FDIC-insured. Notes may lose value. No Prosper or bank guarantee.
