In 2016, my net investable assets increased to $650,339 and overall IRR decreased to 8.75%.
Net Investable Assets: $650,339
|Direct Lending Income Fund||$487,118||$792,181||$305,063|
The increase was $30,706 more than forecast. This was primarily driven by the additional income from salary. 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.
Internal Rate of Return (IRR): 8.75%
|Account||Allocation||XIRR (TTM)||XIRR (TOT)|
|Direct Lending Income Fund||84.16%||10.75%||10.73%|
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. 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.
The performance of DLI Fund is much more stable and predictable. I split my portfolio 90/10 between the DLI Fund and REI. The expected ROI on DLI Fund is 10% and REI is 20%. I will continue to leverage credit card balance transfers to increase return.