Profit versus Effort: 3 investment strategies

Many people are quite hesitant or even annoyed when it comes to thinking about what to do with their savings. I get it: most of us already spend a lot of time in our respective jobs to earn money. As a consequence, we are not really willing to spend even more time to consider what to do with that money. Gathering information about investment opportunities takes a lot of time and numbers are boring anyway.

I suppose this is why blogs like this one exist. To provide condensed information, to show how the investments work and, most importantly, that they return a profit.

In the spirit of passive income the time spent for making investments should be minimized. The money that we spent so much time on earning is supposed to work for us with minimal effort from our side.

As with most things there is a certain relationship between the effort that we take and the profit that we make. Of course, this is also true for financial matters. So, here are my thoughts about 3 possible investment strategies that can give you a certain revenue based on the effort you’re willing to make.

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Some thoughts on Bondora

Investing on Bondora pretty much shows me what happens behind the scenes on platforms like Mintos: loans do fail and not in small numbers. On Mintos, these failed loans are hidden by the buyback guarantee that most loan originators offer but of course I do pay for this by receiving lower interest rates compared to Bondora. Nonetheless, I think that from a psychological perspective, investing on platforms like Mintos is much more pleasing as you don’t have to deal with losses (unless of course, a loan originator fails like in the case of Eurocent back in 2017).

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Extra revenue boost: cashback campaigns on Mintos

From time to time, some loan originators on Mintos offer cashback campaigns which are also advertised in the Mintos newsletter. For the loan originators this is a way to attract more investors, often particularly for their long term loans which might otherwise not be the top choice for investors due to the long payback period. Namely Lendo and Mogo had a few cashback campaigns back in 2017 and 2018 and offered up to 5% cashback for their longest running loans.

While this “normal” cashback is already a nice way to increase your return on investment there is a simple way to take this one step further: Continue reading “Extra revenue boost: cashback campaigns on Mintos”

Foreign currency investments on Mintos

Mintos Russian Rubles RUB

I admit it, I got tempted by the high interest rates that you can get for investments in Russian Rubles (currently as high as 18.7%) and exchanged 350 Euros via the Mintos currency exchange service. The rates they offer are actually really decent and reflect the daily market rates. A small service fee applies (in my case 2.45 EUR) which is listed under Service Fees on your dashboard.

More information on Mintos’ FX service here: Mintos FX

Investing in a foreign currency is of course not much different from Euro investments. On my dashboard and in my Auto Invest settings I got an additional tab to select my Russian Ruble investments. Continue reading “Foreign currency investments on Mintos”

Bondora risk management and profit boost

My Bondora Second Market Strategy

Bondora shows very good transparency and lets you download the entire loan dataset which is fantastic. This dataset includes all loans that have ever been up for investment and is the perfect playground for the number’s nerd.

Yes, statistics are a bit boring so let me do this work for you. What we want to do is to optimize our profits by reducing the risk of investing into loans that will eventually default. The loan dataset gives us the chance to look at the performance of thousands of loans over the past years, so let’s get to it. If you don’t care for the numbers and only want to see the conclusion, just jump to the end of the text.

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