How investing in consumer loans helped this millennial

In 2017, Gal Margalit, 32, left Israel for Sydney to take up a business analyst role in the IT industry. She immediately started looking for a sensible way to invest her money in the hopes of buying a property.

We spoke to Gal about how using Plenti^ has helped her stay in control of her finances and prepare for the future.

Why did you choose to invest with Plenti?

My partner was familiar with the concept of consumer lending, but neither of us understood it super well. So, we did a bit of research with Google to learn more and quickly found Plenti. We liked that we could see its statements online and see the market rate history for investors.

We knew we didn’t want to invest in a bank because the interest just wouldn’t have been enough. By contrast, Plenti seemed like a reputable company, and the interest rates on the 3 and 5 Year Income lending markets were really good.

What was your objective when you started investing in consumer loans?

While I awaited my permanent residency, I needed to invest the money I earned from the sale of a previous property. So, my objective was to earn a return on the money until I figured out what to do with it. Eventually, the goal is to use the money to re-invest in real estate. We initially invested around $350,000, and that number has grown steadily since then.

What do you like about investing with Plenti?

It’s really, really easy because it’s all online. You don’t need to see anyone or talk to anyone, because you manage everything online: investing money, re-investing, and so on. That’s a huge upside. It’s such an easy way to invest my money and it continues to earn a return before I invest it back into a property. I also find the company to be stable and trustworthy.

How do you monitor your Plenti investments?

I work with a laptop every day, so it’s easy for me to check my Plenti investments, which I do about twice a week. I check if there’s money to re-invest and make sure there’s nothing just sitting in my holding account. I don’t have the automatic reinvestment option turned on, because I’m a bit of a control freak and like to do it myself. I have some money in the 1 Month Rolling market, and also some money in the 3 Year Income lending market.

How Plenti’s returns compare

*Annualised asset class returns as reported by Morningstar for the 5 year period to 31 October 2019. Plenti data not provided by Morningstar. Please see below for a full explanation of how the asset class and Plenti returns are calculated. Warning: Past performance is not a reliable indicator of future performance. Different investments reflect substantially different risk profiles.

Daniel Foggo

Written By Daniel Foggo

*Plenti 5 year performance represents average matched rate in the 5 Year Income market from 30 October 2014 to 31 August 2019. Other asset class returns based on the average performance of funds in each category as reported by Morningstar for the 5 year period to 31 August 2019. Data gathered from the following Morningstar categories: Australian Cash: AUS, Bond – Australia: AUS, Diversified Credit: AUS, Australian Equities Large Blend Different investments reflect different risk profiles. All figures stated represent the RateSetter Lending Platform only unless stated otherwise.

^Plenti was known as RateSetter prior to July 2020.