Considering recent situation in the market, you may be thinking whether you should reconsider your investment portfolio. Some investors are making rapid investment decisions without considering their long-term financial goals.  There is no one right way to manage your investment portfolio during a volatile market.  However, before you make any investing decision, sit down and take an honest look at your entire financial situation.

In order to invest successfully, figure out your goals and risk. There is no guarantee that you’ll make money from your investments. But if you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.

All investments involve some degree of risk. If you intend to invest in alternative products such as capital management companies, p2p lending or crowdfunding platforms - it’s very important that you understand before you invest that you could lose some or all of your money.  Unlike deposits at banks or credit unions, the money you invest in alternative financial products that are typically not federally insured.  You could lose your principal, which is the amount you’ve invested. The reward for taking on risk is the potential for a greater investment return.

Getting back to alternative investments many investors wonder if they should choose 36 or 60 – month loans in their p2p portfolio. Most of the investors prefer 36-month loans due to shorter payback period. However, according to aggregated data from Marketplaces it turns out that 60-month loans are achieving better results than 36-month loans.

The simple explanation here is that 60-month loans are priced higher than for 36-month. This leads to that people are willing to take a much higher rate of interest on loans that have longer duration because the payments are so much lower. If you take a loan of $5.000 with 6% interest rate for 36-month term, you will have to pay around $152 every month. If you paid 9% interest over a 60-month term, you will have to pay around $103 every month. By broadening the loan payments over 5 years instead of 3 years, that’s $50 a month that feels like savings.

Final conclusion, people tend to borrow for 60-month term instead of 36s, because this offers lower monthly payments, even if the interest rates are higher. Aggregated data shows that the 60 month loans have out-performed the 36s by 1.4% per year.