Time flies when you’re having fun, huh? My Bondora portfolio is now three years old, so I thought I’d take a quick look back and see what’s been happening and share a bit about my future plans when it comes to my private portfolio in Bondora.
Some quick stats to get started:
Total money invested: 5000€
Total interest earned: 2031€ (as of 30.12.15)
Current portfolio: 80% Estonian loans
Loans by rating: see below
So, the good, the bad and the ugly. Overall I am happy with how my Bondora portfolio has performed. I also took some time to calculate my returns, and this is the current standing for my own calculations for returns:
Option 1 (Super pessimistic)
Option 2 (Less pessimistic)
The pessimistic scenario looks rather pessimistic indeed, but don’t get stuck on those numbers. This is because it assumes no recovery for loans, but I can actually see recovery happening, so no need to panic. Overall in the long run the returns will be somewhere in the 12% range, it has balanced out more and more as time has gone on.
I have completely stopped adding money into my private portfolio, and once new year starts I will start actually taking out money. There are several reasons for this. 1) I am building a second Bondora portfolio for my business account (going well so far, have given out my first 100 loans), 2) The tax hit is just getting too big (before, it balanced out with my mortgage tax return, but this year I’m actually paying additional tax), 3) Benefits of investing as a business – both in terms of accepting defaulted loans and postponing tax obligations.
So, as of today, I have set my bids to AA & A Estonian loans, however many there may be, and hope to transfer out the 5000 euros that I invested in the next two years. This money will be directed into stock investments, mostly into buying into index funds regularly, since stocks are the most reasonable investment for a private person in Estonia. I predict that my private portfolio will remain in the range of 3000€, and I’ll keep it slowly spinning to track how it does.