In 2016, my net worth increased to $623,097 and overall IRR decreased to 8.75%.

Net Worth: $623,097

Account 2015Q4 2016Q4 Change
Cash $10,081 $42,845 $32,764
Lending Club $177,860 $43,878 $133,982
Direct Lending Income Fund $487,118 $792,181 $305,063
Groundfloor $0 $5,190 $5,190
iFunding $0 $100,000 $100,000
Debt ($174,840) ($360,996) $186,156
Total $500,220 $623,097 $122,877

The increase was $30,706 more than forecast. This was primarily driven by the additional income from salary.

Internal Rate of Return (IRR): 8.75%

Account Allocation XIRR (TTM) XIRR (TOT)
Lending Club 4.66% (4.16%) 5.71%
Direct Lending Income Fund 84.16% 10.75% 10.73%
Groundfloor 0.55% 6.86%
iFunding 10.62% 3.60%
Total 100% 7.98% 8.75%

My overall IRR continued to suffer from a loss from Lending Club. Allocating a large portion of my portfolio to Lending Club was a big mistake. The actual ROI was much lower than the projected ROI, and liquidation was painful. It was not a good investment overall. The performance of DLI Fund is much more stable and predictable. I’ve stopped reinvesting for the foreseeable future and continue winding down all Lending Club accounts. I plan to transfer Roth IRAs from Lending Club to Vanguard.

Income Statement: $302,276

Income 2016 Forecast 2016 Actual 2017 Forecast
W-2 $205,000 $244,718 $270,000
1099 / K-1 $70,000 $57,558 $100,000
Total Income $275,000 $302,276 $370,000
Expenses
Rent $27,000 $31,510 $41,940
Food + Gas + Utilities $15,000 $15,000 $15,000
Miscellaneous Expenses $12,000 $12,000 $12,000
Total Expenses $54,000 $58,510 $68,940

Higher salary was due to the appreciation in the RSUs and lump sum relocation package from my full-time job, and lower investment return was due to a large loss from Lending Club ($3,982 loss vs. $5,000 gain) and lower return from DLI Fund (10.89% actual vs. 12% forecast). Over the next few years, my salary will remain flat while a passive income continues to grow. My portfolio splits 90/10 between the DLI Fund and REI. The expected ROI on DLI Fund is 10% and REI is 20%. Tax on the passive income comes 1 year delay. I plan to do credit card balance transfers every year.