Go and Grow Bondora is a new investment strategy released by this P2P lending platform. It is already available to all users (2019)
Until now if I wanted to buy Bondora loans I had to go through the sleek “Portfolio Pro” or the basic “Portfolio Manager“. Some very advanced users stick to the API, but most people just don’t need the API.
Now the Bondora Go & Grow 6,75%* is coming and I want to know if it is worth my attention or not!
Here is a clean Bondora Go & Grow review, probably the easiest way to invest in P2P lending ever
Portfolio pro Vs. Go and Grow:
I start to say that I always use Portfolio Pro since it allows me to get the risk profile I want without too much thinking. My average annual yield is above 10/13%. I always avoid the lowest rated Bondora loans since I know the risk is too high, and the debt collection may take ages.
Bondora Portfolio Manager is not accurate, but it is a very fast way to start and deploy some capital in high revenue loans. It is a simple tool for beginners or for people with little time to spare.
Bondora Go & Grow may be a good tool for beginners, but also for those who want to lower their risk profile without too much thinking.
Are money always available on Bondora?
The revolution here is the promised permanent availability of the invested capital on Go & Grow
Investors are able to withdraw their capital at any time at the moment. This is something really new and very interesting for people willing to invest fast and efficiently without facing the learning curve any tool brings with.
Ordinary investors on Bondora have to sell their loans before transferring their cash to the personal bank account, Go & Grow investors will always have the money available to them.
I won’t be popular saying that it is not a good thing. Why? Because long term investing is perfect until we don’t withdraw money. Being allowed to do so can be worse and lead into “temptation”.
One more thing that I don’t really love about this product is that approximately 50% of the loans are E and F class. It should not touch me, but doing so I have to acknowledge that I am potentially investing in medium to bad credit.
Lower interest rates Go&Grow
As you can imagine there is a price to pay for such a comfort. The downside here is the lower interest rate. This is set to 6,75%* capped for go & Grow users.
Since we know that Bondora has some of the highest interest rates of the P2P lending, experienced users may (understandably) be not very interested, for now and could stay with the Portfolio Pro tool.
The average Bondora user normally earn between 8% and 20%, even if most people just hover around 11% yearly.
Bondora is not risk-free and it will never be, but this new tool is undoubtedly a cool one especially for newbies. Investing this way your capital stays at risk as it does with almost any investment.
Bondora also says the 6,75%* yield is not guaranteed, but they are very confident with this calculation. They stress the fact that it is absolutely hassle-free and automated, without any management fee.
Taxation is much easier with Go & Grow Bondora. They say investors are supposed pay tax exclusively when withdrawing money back to their own account.
To sum up, with Go & Grow you can:
Earn 6,75%* / year
Invest without complicate settings
Have instant liquidity
Have a diversified portfolio
Only pay tax on withdrawal
Create multiple portfolios
Share the portfolios with people you care
Go & Grow has advantages and disadvantages. I find clever the “gamification of saving” on this table!
Playing Go & Grow game
The most clever way to use Bondora Go & Grow is to do it for:
“Retirement” or “Rainy day”.
Invested money should be not used before they reach the end of their “journey” so it is safer to set a far away date. The farthest away is 20 years.
As a matter of fact, the name of the Go & Grow portfolio cam be changed with anything and the result is the same.
Bondora Go & Grow after 20 years
If I apply for Go & Grow:
- Starting with 0 €
- Contributing with 500€ savings per month
- Keep doing this for 20 years
At the end of the investment I will have:
- Added 120.000€
- Earned 126.679€
- Final money 246.679€
How to migrate to Bondora go & grow
Investors who want to transform their actual portfolio in a Go & Grow form are allowed to do so Click To Tweet
It’s enough to create a new Go & Grow and click on “Add Existing Investments”. Doing so we authorize Bondora to sell our loans and liquidate our portfolio (even if for a lower amount ⚠️). The amount will be invested in your Go & Grow.
Go & Grow for Late Bondora loans
Some old Bondora users during the years may have built up some late (probably high risk) loans.
There is nothing bad, since a part of those Bondora late loans will be recovered. In many cases also late interest fees are applied. If one is not willing to wait, this is normal. Migrating to go & grow can be a good idea to get back to profitability, but it comes with a price.
Alternatives to Bondora Go & Grow
Bondora Go & Grow Vs. Mintos Invest & Access
It is not easy to decide if Go & grow is better then Mintos Invest & Access, since the latter has been released very recently.
What is sure for now is that there are huge differences.
The main one is the real immediate access to the invested money.
Even if with Mintos, as an investor I can get higher average interest, I also may be forced to wait some months to get my full capital back. In fact the new Mintos formula works very differently from Bondora Go & Grow.
With Bondora Go & Grow interest is capped to 6,75% but I can really cash in 100% of my invested money instantly.
This aspect is not particularly attractive for me, since I see P2P lending investing as a very long term thing. I also understand that it is one more angle to consider for many investors.
When I use Go & grow, a good share of the loans in D-F rated. I don’t like it but I don’t care much since I’ve read T&C and I know Bondora is a profitable company so far. I always keep an eye open on their financials.
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“As with any investment, your capital is at risk and investments are not guaranteed. Before deciding to invest, please review the Bondora risk statement or consult a financial advisor if necessary.”
*The yield is up to 6.75% per year.
NOTE: The indications contained in this analysis are to be considered mere information tools and do not intend to constitute in any way financial advice, solicitation to the public savings, suggest or promote any form of investment.