EL SEGUNDO HERALD June 16, 2016 Page 15 Finance People Are Discovering A New Way To Boost Their Portfolio to invest in a number of different loans in order to build a diverse portfolio and reduce risk. Risk-adjusted returns. Marketplace lending platforms provide a product that offers competitive return rates relative to other investment products. Investors can choose to peruse the marketplace lending website manually to find the loans that match their risk tolerance. They can also use a tool available on some of the marketplace lending sites that will run a search to help the user easily invest in the specific type of loans they are looking for. Positive social impact. P2P lending is not only a way to strengthen your financial plans, it offers real benefits to individuals and the community. Prosper Marketplace recently conducted a study and found that over 60 percent of Americans have credit card debt and two-thirds are going deeper into debt by not paying them off in full. With so many Americans struggling with debt, it’s no surprise that marketplace loans are becoming a popular option for debt consolidation. Individuals can invest in this debt knowing that marketplace lending platforms leverage technology to assess risk and determine a credit rating. The following disclaimer can be used to clarify the 6.8 percent return mentioned under the “Proven results” section: Estimated returns are calculated by taking the weighted average borrower interest rate for all loans originated during the period, adding (ii) estimated collected late fees and post charge-off principal recovery for such loans, and subtracting (iii) the servicing fee, estimated uncollected interest on charge-offs and estimated principal loss on charge-offs from such loans. The actual return on any Note depends on the prepayment and delinquency pattern of the loan underlying each Note, which is highly uncertain. Individual results may vary and projections can change. Past performance is no guarantee of future results and the information presented is not intended to be investment advice or a guarantee about the performance of any Note. • Data from March 5 - March 14, 2016 (BPT) - As a volatile market sends ripples through the global economy, many investors are worried about how events overseas will impact their portfolio. In addition, concerns about political instability in much of the world have contributed to a heightened sense of worry and stress among investors. However, while the risks in traditional markets are real, 2016 is full of opportunities for the investor who is willing to think a little differently. In the face of these uncertainties, the standard advice is for investors to diversify their portfolio. Many have been doing this by taking money out of their dividend-paying stocks and corporate bonds and investing in marketplace lending. Marketplace Lending Marketplace lending platforms, sometimes called peer-to-peer (P2P) lenders, are online marketplaces that connect credit-worthy borrowers with individuals seeking investment opportunities. This gives individual investors low-cost access to high-yield consumer loans - an attractive new asset class that was previously only accessible to large institutions. As an alternative investment strategy, investing in marketplace loans has helped investors diversify their portfolio. Early investors discovered five secrets that are still the keys to understanding why more people are choosing to diversify their portfolios through marketplace lending. They are: Proven returns. Individuals who invest through Prosper, a leading marketplace lending platform, can earn an estimated 6.8 percent in returns. Simple and fast. Investors go through an authorization process on a marketplace lending website to link their profile with their bank, or do a money transfer, in order to establish bank or institutional credentials. The process can be completed within a short period of time, allowing people to start investing in a matter of days. Reduced risk. With marketplace lending, investors can diversify by investing in many different loans (in $25 increments). Many choose Eighty-Two from front page substitute capacity for a few more years until passing away after a brief illness. The process of identifying and selecting scholarship candidates begins each October when Stolnack sends out a contribution request letter to her classmates with a brief synopsis of the most recent awardees plus letters from past recipients who send along graduation announcements or other updates on their progress since graduating from El Segundo High. “I then give my classmates until April to make their contributions,” Stolnack said. “And a couple of times, the Board [Stolnack serves “He urged them to return here after finishing college and establishing their careers and to give back to the school or community in some way.” as President, with Dianna Smith-Day Vice- President and Dede Charsha-Gerber Secretary/ Treasurer] meets to discuss any changes that need to be made and to track how far along we are in our collections.” For the Class of 2016, Stolnack and company received 54 application packets that they eventually narrowed down to 11. A committee of seven Eagles of Eighty-Two classmates then interviewed the students for several hours and ultimately decided on the final recipients. Seven students received $2,000 each. One of them (Megan Burns) was handpicked by Gabel Solomon, the much-loved custodian who recently retired after 35 years at the campus. “Gabel came to El Segundo High when we were students there and so we chose to honor him this year,” Stolnack said. “He read through all the applications and sat through the student interviews before making his selection.” In choosing the awardees, the committee requires students at the minimum to maintain a 3.0 GPA or higher with commitments to attend a two- to four-year college/university or vocational school. More specifically, the group looks to identify those who have dealt with significant adversity in their lives such as the death of a parent or sibling, addiction within the family, financial hardship or other serious issue. “We look for someone who has had to deal with outside stresses and has still persevered and remained a good kid and student despite the obstacles,” Stolnack said. The scholarship monies go towards educational purposes (e.g. tuition and books) for students moving on to college or vocational school. While pleased to see the continued success of the Eagles of Eighty-Two scholarship program, Stolnack looks at it as an opportunity that can—and should—expand beyond the scope of just her own graduating class. “Just like the case 13 years ago, we are now putting out our own challenge , and would like to see other El Segundo High School classes jump on board and give back to our alma mater in a similar way,” she said. “If just one class can make a positive difference in the lives of dozens of students, imagine what we can do if five, 10, 15, 20 other graduating classes do the same. Giving back this way is a win-win situation across the board. It helps jumpstart the future for deserving kids and serves as a reminder of what El Segundo is truly about...” • Lakers from page 5 That’s not to say Simmons is not the clear No. 1 choice of the draft. The Lakers would certainly be happy if he fell to them at No. 2. All signs point to him being a great talent and he would fit in perfectly with a young Lakers squad. Chances are that the Simmons “As the No. 2 team choosing, however, the Lakers simply sit back, relax, and choose whichever player the Philadelphia 76ers (who choose first in the draft) don’t choose.” scenario will not play itself out for L.A. That leaves only two scenarios left on the table for the Lakers. Draft Ingram at No. 2 or trade the pick for a veteran. “Just off the top of my head, I don’t think there’s a lot of players we would trade for with that pick,” Lakers General Manager Mitch Kupchak said, as he laughed all rumors of trading his selection away. David Aldridge of NBA.com perhaps put it best when he said, “Few expect the Lakers to move the pick, after all the angst they had to go through this year to secure it.” Just as all signs point to Simmons in Philly, it seems more and more as if all signs are pointing to Ingram in Los Angeles. That is not a bad thing, either. Ingram is a wing player that should be a perfect fit on a Lakers team that is in need of, well, everything. He should bring defense, much-needed shooting ability, length, speed and rebounding to a team that has been devoid of all of the above. In addition to his attributes and intangibles, Ingram is young. The 18-yearold out of Duke will fit right in with a roster of players that are aged similarly. Also, according to ESPN Analytics, Simmons is the riskiest pick in this year’s Top 10 picks and has the highest chance (35 percent) of those 10 of becoming a bust. Ingram only has a 26 percent chance of becoming a bust, according to the analytics, while he also has the highest chance of becoming an All-Star (25 percent) and ranks as ESPN Analytics No. 1 overall player on the board. The Lakers may not win a championship next season, but once all of the young studs finally mature, LeBron James should be well past his prime, the Warriors run will be over, and Los Angeles should be primed for another dynasty-type-of run. All things considered, owning this year’s No. 2 pick in the NBA Draft is a great thing for the Lakers any way that you look at it. Either the team comes away with a prospect like Ingram to add to their already young stable of talent, Simmons falls to the team at No. 2, or they trade their pick for an already established veteran who could, theoretically, fast-forward the team’s chances at contending for a championship. Being at No. 2 is a good place to be, any way you look at it. Now, we’ll all just have to sit back and wait one week longer to see what the Lakers decide to do with the fortunate position that they have been offered. • “However, while the risks in traditional markets are real, 2016 is full of opportunities for the investor who is willing to think a little differently.”
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