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My wife and I each have an IRA with Prosper.com. I've been happy with Prosper and have added to it each year. I've never used the note trading part of Prosper, but I knew it was there if I ever needed it. Now that it has been shutdown, I'm concerned about an exit strategy when something should happen to us. I don't want my trustee to have to wait five years for all my loans to mature to be able to get to all the money. I've search the web, but I don't see anyone else asking this question. I would think it would be on a lot of people's minds. With no note trading option, how can someone liquidate their Prosper investment without waiting for all the loans to mature? Is your estate really going to have to sit around and wait for all your notes to mature to be able to get to all their inheritance.

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How much notice did they give? I'm on LendingClub and would have the same concern.

I would be worried that might mean they aren't doing well, but you'd think they'd make a lot on the exchange fees too. Perhaps they are just trying to meet some SEC regulations and staying away from being labeled securities traders.

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walletfart said:   How much notice did they give? I'm on LendingClub and would have the same concern.

I would be worried that might mean they aren't doing well, but you'd think they'd make a lot on the exchange fees too. Perhaps they are just trying to meet some SEC regulations and staying away from being labeled securities traders.

  Looks like one month. Some details and perspective here:

http://www.lendacademy.com/prosper-closing-secondary-market-reta...

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I have a lending club ira and have concern as balance is somewhat trapped as each withdraw is costly but alternative is to leave cash idle for years. Lessen impact by only reinvesting only in 36 month loans. Will at least bring down to 3 years within 2 years. Can reevaluate at that point

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I'm trying to decide whether to add my 2016 Roth IRA contribution to Prosper or Schwab. I've loved Prosper for two years now, even with all their insane business practices, but if my trustee has to wait five years to get all the cash, I don't think it's a prudent investment for me anymore. I know it's not a liquid investment, but it was nice to know there was the Folio exchange if it was ever needed. Yes, you may need to take a discount, but if needed, that would be acceptable. Is everyone else okay with this scenario when you die? It doesn't matter if it's an IRA or taxable account, your family can't get to the money when you die.

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What about RMDs, both for owners who hit 70 1/2 and non-spouse inheritors.  How would the IRS handle that kind of situation where the money was locked up so you couldn't take the RMD.  Is it valid to say it can't be dispersed or would they get a penalty because you didn't take the RMD.

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AverageGuy09 said:   What about RMDs, both for owners who hit 70 1/2 and non-spouse inheritors.
  
You'll be required to take a distribution in the proper amount,  see your tax advisor.

Also; from a risk standpoint    Prosper loans are high-risk consumer debt notes,  and it would probably not be advisable to have a majority of your IRA assets tied up in such an illiquid high-risk instrument if you're less than 15 years from planned retirement.

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This is a quandary I don't like to be in, but I like Prosper enough to give them another year of my wife's and my Roth IRAs. I've looked into Lending Club and they do allow IRA accounts to trade notes on FolioFN. I'm just hoping that Prosper gets their act together and brings back FolioFN or some other option to liquidate an IRA if desired. If they don't get their act together, maybe Lending Club will end up buying Prosper out. I just don't want to open a Lending Club account, take the time to learn all their quirks and then slowly transfer funds from Prosper to Lending Club since I've finally gotten Prosper working smoothly for me. Sorry, but I'm lazy. I know these notes are note liquid, that's the whole point of this investment class, but since Lending Club offers it, I want it from Prosper as well. Since we're in our early 50s, I know lots of changes will be happening to both of these companies over the coming years. I just hope these changes are things that are better for the retail investor.

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