Progress/success thread for crowdfund talks


  • Funding Societies

    Hey crowdfunders,
    Many communities have a thread where they discuss the progress or success of its community members. What would that look like for our community?

    I think that achieving financial independence could be one possible way to track success of your investments. Another one would be recovering your money lost in defaults by investing and reinvesting.

    What are some other ways we can measure success? Lets brainstorm.!



  • Recently I read something from Richard Branson and it was about happiness. I think that is one measure of success - https://www.virgin.com/richard-branson/my-tips-happiness-2018


  • Funding Societies

    @DC amazing! tks for suggesting. happiness is definitely an important measure of success.!



  • To me success is to do nothing but immersing myself into investments to earn passive income as well as some active investment.

    My hope for p2p is no defaults and I could get into any deals that I want.



  • For me, the fact that I’m not thinking about individual borrowers and late payment status means I have successfully diversified enough. Interest should be able to cover the eventual defaults and still earn some.



  • Similar to @Bendahara, for me, success is when passive income generated is able to cover a person's monthly expenses and the person could do whatever he want, free from worrying about tomorrow.


  • Funding Societies

    @Bendahara yep, your thoughts are similar to mine in this. But no defaults for P2P is kinda impossible to achieve :)

    @jomni that's a great one. Be as less involved as possible in monitoring and worrying about your investments.

    @Lipozami good to hear. hope this forum allows you to expand your alternative finance portfolio into trusted platforms and let you achieve your goals.



  • The best thing to have is a passive income. Anything beyond that ie. working would be a bonus / extra.


  • Funding Societies

    @JV How would you define passive income? Should it be a regular payment? Does it have to be bigger than a certain number?


  • Community Manager

    @JV I have the same question @vamsi7 had! Especially since the definition of passive income nowadays seems to be getting broader with the easier / more seamless experiences with various financial products e.g. P2P auto-investing, some robo-advisors. What is passive income to you?



  • I would probably categorize myself on one of the levels in the following blog post

    https://www.collaborativefund.com/blog/the-spectrum-of-financial-dependence-and-independence/

    At least for me by having and end goal and aiming towards that helps me plan the type of risk I am willing to take in various investments.



  • @kaeley-wn Robo is not passive income as you don’t get cash periodically. Unless the ETF really give out a substantial amount of money regularly. The goal of passive income is to get x amount of money every month to replace a day job salary.


  • Funding Societies

    @jomni agreed! monthly returns are key to earning a passive income! Robo advisories have a long term lock-in period in order to returns.



  • @kaeley-wn
    A great success would be to match monthly interest income from P2P investment to the active monthly salary.
    That is too far fetched. Haha ;)
    But, big dreams are always crazy right?

    My 1st baby step is to achieve interest income of RM1,000 / month from P2P.
    Then RM2000 / month and so on.

    I want to be the next Public Bank or OCBC Bank. Woohohhahahaha....
    Damn,,,,,i should avoid smoking pot too much. (>.<)



  • @ktinvest said in Progress/success thread for crowdfund talks:

    @kaeley-wn
    A great success would be to match monthly interest income from P2P investment to the active monthly salary.
    That is too far fetched. Haha ;)
    But, big dreams are always crazy right?

    My 1st baby step is to achieve interest income of RM1,000 / month from P2P.
    Then RM2000 / month and so on.

    I want to be the next Public Bank or OCBC Bank. Woohohhahahaha....
    Damn,,,,,i should avoid smoking pot too much. (>.<)

    You will be there soon so long as you drive in all your spare cashes plus reinvesting your profit



  • @kaeley-wn said in Progress/success thread for crowdfund talks:

    @JV I have the same question @vamsi7 had! Especially since the definition of passive income nowadays seems to be getting broader with the easier / more seamless experiences with various financial products e.g. P2P auto-investing, some robo-advisors. What is passive income to you?

    The passive incomes should be work needed to be done once and the return will come in on an agreed installment.

    Bonds, reits and dividends are the more common form of passive income.



  • @bendahara also unit trust which pay out dividends.



  • @ktinvest haha.. i'm sure it's achievable for you. Assuming average net interest is 12% p.a / 1% p.m, then you need to have at least 100k invested in P2P. xD


  • Funding Societies

    So to consolidate

    • Earning a passive income (Specifically, having a monthly cashflow from returns earned)
    • Not worrying too much about late payments & defaults. Good diversification
    • Picking a scale as written in this article and striving to achieve it.

    Lets keep going. Will consolidate and make a progress thread after we are done, so that users can keep track of their progress / success in it.



  • Passive income for me is drawing a sum monthly or quarterly that will be used as expenses meaning using it for your expenditure. If you draw regular income or money but end up using it to top up your investments, then that is not passive income. You should have matured savings that will give you that income without you having to source for it ie working. Of course, if you still choose to work, then that is a bonus.



  • My question is: When you build up a portfolio, do you budget or prepare for a shortfall in your portfolio ? For example, if your portfolio drops by 5%, that will affect your portfolio too in terms of percentage in total returns. What would be the acceptable percentage in drop of your portfolio ? Another example is you have let's say 100,000 giving you 6% returns annually. If that return drops then your passive income drops too. There must be some tolerance for a drop. So this must be considered too when building a passive income if you are using it for funding your expenses in future. NOT FORGETTING INFLATION.



  • @jomni said in Progress/success thread for crowdfund talks:

    @bendahara also unit trust which pay out dividends.

    Yes that too plus many more



  • @jomni Could you share which Unit Trust that pays out dividends ?



  • @jv A lot. Go to FSMOne.com use the fund selector function in the funds page and tick “dividend paying only”.



  • @jv said in Progress/success thread for crowdfund talks:

    Passive income for me is drawing a sum monthly or quarterly that will be used as expenses meaning using it for your expenditure. If you draw regular income or money but end up using it to top up your investments, then that is not passive income. You should have matured savings that will give you that income without you having to source for it ie working. Of course, if you still choose to work, then that is a bonus.

    Thanks for sharing

    To me income = active + passive income

    To achieve Financial Freedom, my passive income must be more than my expenses.

    To allow myself to achieve that fast, I must either increases my passive income or reduced my expenses even through I should be looking at both at the same time.

    I am at the stage whereby my active income > expenses so I am diversifying whatever I could.

    For the future I will hope that once I achieve my financial freedom, I will still actively reinvest whatever that is remaining in my passive income after spending into investment.

    The idea is to create a huge buffer between your passive income and your expenses and to let it get bigger and bigger as time goes by.



  • @jomni Ok thank you. I always had this thought that UTs only give capital appreciation but not dividends. See, I learnt something new :)



  • @bendahara Agreed. By all means build your buffer and investments if you can. I am just looking at the worst case scenario of not having the means of building your investments and needing to use your passive income to cover expense. As the saying goes, The More The Merrier :)



  • @jv said in Progress/success thread for crowdfund talks:

    My question is: When you build up a portfolio, do you budget or prepare for a shortfall in your portfolio ? For example, if your portfolio drops by 5%, that will affect your portfolio too in terms of percentage in total returns. What would be the acceptable percentage in drop of your portfolio ? Another example is you have let's say 100,000 giving you 6% returns annually. If that return drops then your passive income drops too. There must be some tolerance for a drop. So this must be considered too when building a passive income if you are using it for funding your expenses in future. NOT FORGETTING INFLATION.

    As I am still working, I am constantly adding to my portfolio. My passive income will go back to invest as well. (Do not feel that I need to spend them.) so long as the growth continue to outpace the inflation of around 4% (the last I look the average is around 2 to 3 plus percent from the statistic board.), I think it should be fine


  • Funding Societies



  • Hi all, I am a latecomer to this thread, but here are my thoughts:

    • I have some FDs and PNB fixed price funds in MY, which I consider sufficient for safe investments for now. OK, some might argue these are not investments, doesn't matter. I also have some in cash trusts (not unit trusts). In sg, I do stocks directly and FS.
    • I don't have preset portfolio percentage for investments channels but I will ask myself is there no better choices than CF (risk vs returns, and returns must be better than 8% net) at the moment for my idle funds? If no, then FS it is. My investments in FS notes is always after reading the factsheets, unless it's meagre $50/$100.
    • Financial Independence? Dont think so much, make funds work as hard as possible for now ;-)
    • Always diversify to manage risk, reinvest profits, never use up ALL investment funds, in case recession strikes again? My original purpose of moving funds to SG was to hedge against MYR, I guess based on history, I am very likely to succeed. :-)

    So, in short success for me now for CF is yield > 8% net tax and fees etc.


  • Funding Societies

    So, in short success for me now for CF is yield > 8% net tax and fees etc.

    That's quite specific.! thanks for sharing. Hope all of us here can help you reach your goals.!



  • @vamsi7 said in Progress/success thread for crowdfund talks:

    So, in short success for me now for CF is yield > 8% net tax and fees etc.

    That's quite specific.! thanks for sharing. Hope all of us here can help you reach your goals.!

    My rule is CF yield - probability of default > 5%. :D


 

Looks like your connection to Crowdfund Talks | A Community for P2P Lending & Alternative Investments was lost, please wait while we try to reconnect.