On Sunday, 18 September 2016 at 16:13:55 UTC, Andrei Alexandrescu wrote:

Wouldn't that be risk from the unsecured personal lending business, which although numerically similar has a different dynamics?

In my head, I was imagining an efficient frontier and where a 5-7% return would get you.

I've been looking at their historical numbers. Their accounts didn't lose money even during the trough of the recession. At that time they were one of the best places to invest out there. There are challenges in the world of marketplace lending, but as far as I understand it sure is a solid choice.

They have different ratings for loans. The favorably rated investments did well, but the lower rated stuff lost money. So at least that provides some guidance.

Anyway, I'm pretty sure longer-term Treasuries had even better returns during the financial crisis (b/c of the price change as yields fall) and you could sell a fund containing them at any time.

Regarding the stock market, IB is quite attractive, and has an
incredibly low margin rate.

Frankly, this comment makes me cringe.

s/cringe/curious to know more/

The basic idea here is to have a buffer for short-term borrowing. For example, for DConf we'd need to plop down some money for renting a conference hall until proceeds from registration roll in. The notion of being able to take a 1.60% APY for that is quite attractive. Sadly, I've looked at IB since and they don't offer any checking or general banking. I'm not 100% sure, but I assume they'd lend money only for investing; they wouldn't allow you to transfer cash on margin into your bank. Does anyone know exactly what the case is?

I suppose this makes sense if they let you do it. I was thinking you were going to use margin for investing, which did not seem to fit with your goals.

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