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Prosper.com Brings Consistent, High-Yield 10.46% Returns to IRAs(February 29, 2012)
SAN FRANCISCO, CA -- (Marketwire) -- 02/29/12 -- Prosper.com, a peer-to-peer lending marketplace for personal loans and investments, announced today that investors seeking consistent and predictable high-yield returns in their retirement accounts can now open a new or rollover IRA at Prosper.com and earn industry-leading 10.46%(1) tax deferred returns.
Traditional, Roth, SEP and 401(k) rollovers are eligible for investing in a Prosper IRA. The minimum investment requirement is $5,000. The federal deadline to fund a Prosper.com IRA is Tuesday, April 17, 2012.
"Unfortunately, retirement portfolios have been hit hard by the volatility of the markets and many investors don't have the luxury of time to make up for losses," said Joseph Toms, Chief Investment Officer of Prosper.com. "Investors eager to boost their retirement savings can now benefit from the consistent high-yield of our industry-leading returns with the tax advantages of an IRA. The Prosper IRA is also an ideal option for younger investors seeking longer term tax-deferred growth. It's a great time to open a Prosper IRA."
Along with best-in-class seasoned returns of 10.46%, the benefits of a Prosper IRA are:
- Tax advantages: returns grow faster tax-deferred with the Traditional IRA, and tax-free with a Roth IRA;
- No fees: all fees for accounts with balances of at least $10,000 are paid by Prosper.com(2);
- Broad diversification: a portfolio of consumer loans helps reduce an investor's portfolio volatility;
- Easy reinvestment: Prosper.com's Automated Quick Invest tool reinvests earnings so that returns compound over time;
- Personalized service: To ensure the best service, Prosper.com has partnered with Sterling Trust(3), the self-directed IRA custodian with over $10 billion under custodial and retirement administration.
For more information, Prosper.com is hosting a free webinar on Thursday, March 15 at 7 p.m. ET / 4 p.m. PT. Prosper.com's Chief Investment Officer, Joseph Toms, and Mike Kurka, Institutional Sales Executive at Sterling Trust will lead the conversation: "Boost Your Retirement Savings: The Advantages of a Self-Directed IRA for Your Peer-to-Peer Lending Investment." Register here.
Prosper Marketplace Inc., a peer-to-peer lending marketplace for personal loans and investments that brings together creditworthy borrowers with individual and institutional investors, allows people to invest in each other in a way that is financially and socially rewarding. Individual and institutional investors invest in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Prosper.com handles the servicing of the loan on behalf of the matched borrowers and investors. Prosper.com was co-founded by Chris Larsen, co-founder of E-LOAN. Prosper.com has raised $83.85 million in venture capital and is backed by financial and technology luminaries including, Tim Draper of Draper Fisher Jurvetson; David Silverman of Crosslink Capital, Accel Partners; CompuCredit; Omidyar Network; Capital One Co-founder Nigel Morris of QED Investors; Court Coursey of TomorrowVentures; Larry Cheng of Volition Capital.
Notes offered by Prospectus.
1. Seasoned Return calculations represent historical performance data for the Borrower Payment Dependent Notes ("Notes") issued and sold by Prosper since July 15, 2009. To be included in the calculations, Notes must be associated with a borrower loan originated more than 10 months ago; this calculation uses loans originated through February 28, 2011. Our research shows that Prosper Note returns historically have shown increased stability after they've reached ten months of age. For that reason, we provide "Seasoned Returns," defined as the Return for Notes aged 10 months or more.
To calculate the Return, all payments received on borrower loans, net of principal repayment, credit losses, and servicing costs for such loans, are aggregated and then divided by the average daily amount of aggregate outstanding principal. To annualize this cumulative return, it is divided by the dollar-weighted average age of the loans in days and then multiplied by 365.
All calculations were made as of December 31, 2011. Returns have been audited by a 3rd party for all data through September 30, 2011. Seasoned Return is not necessarily indicative of the future performance on any Notes.
2. Prosper will pay your IRA service fees, which are due to your IRA custodian upon account opening, if your Prosper IRA (i) has an initial balance of $5,000 or more in Prosper Notes within two months of opening, and (ii) maintains this balance throughout the year. Prosper will continue to pay your IRA service fees after the first year if (i) your IRA has an invested balance of $10,000 or more in Prosper Notes as of the first business day immediately after the anniversary date of the opening of your account, and (ii) maintains a balance of at least $10,000 in Prosper Notes throughout the year. An annual fee from your IRA custodian applies to accounts that don't meet these requirements. Prosper reserves the right to modify or discontinue this offer at any time.
3. Prosper and Sterling Trust are not affiliated with one another. All IRA administrative services are offered solely through IRA custodians like Sterling Trust. Prosper is not a tax advisor; please consult with a tax professional to determine whether investing with Prosper through a self-directed IRA is right for you.
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