Saving for Retirement and Investing on Prosper
The economic troubles of the past few months have had a devastating effect on people who are saving for retirement. Investors who are willing to take risks have seen the stock market fall to the lowest levels in ten years. Conservative investors have seen yields on savings accounts and money market funds drop, reducing their returns.
Prosper can provide an alternative for investors to the volatility of Wall Street or the conservative returns of CD or money market accounts. Investing through Prosper may enable investors to earn fair returns, while also offering greater control over their portfolios while saving for retirement.
Investing for retirement through Prosper
We believe we provide an investor-friendly, transparent environment. Lenders can browse our online loan listings and choose the listings that match their interests and their risk tolerance. Lenders can build a portfolio of loan Notes and can spread their risk by investing as little as $25 per listing.
While Prosper does not offer tax advantages like an IRA or 401k plan when saving for retirement, there are also no restrictions on withdrawing your money. When payments are received, you can take out the money or re-invest in new loans.
At Prosper, we want to help you reduce the risk of people-to-people lending as much as possible by providing you with tools and historical data to assist you in investing decisions. Notes issued through Prosper are not FDIC insured nor are they guaranteed. Borrowers may default on loans, exposing lenders to credit risk. But you can reduce the impact of any one default on your portfolio by investing in a large number of small loans rather than a small number of larger loans, spreading your risk across more borrowers.
How Does Prosper Work?
Prosper is America's leading online destination for borrowing money and investing in loans. Prosper's lenders can get fair returns by bidding on borrowers' loans, and borrowers great rates as a result of the competitive bidding. And that means everybody does better. Together.
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.
