Portfolio diversification is one of the best investment tools available, and we intentionally seek partners that expand and support investors’ access to unique asset classes. It’s even more exciting when a new partner’s mission aligns so closely with our own.
Prosper is a leading peer-to-peer (P2P) marketplace for consumer loans, allowing individuals to take out loans facilitated by investors. Borrowers can apply online for fixed-rate, fixed-term personal loans between $2,000 and $40,000, and people and institutions can invest in those loans. Prosper’s easy-to-use platform provides investors with a simple way to diversify their portfolios beyond traditional investments and potentially earn attractive returns.
Like Alto, Prosper aims to help people put their money to work—investing with intention to shape the financial future they want.
Enabling Tax-Advantaged Investing in Consumer Loans
Starting this week, Prosper investors will have a seamless way to use tax-advantaged funds from their Alto IRA to invest in consumer loans on the Prosper platform. And on the Alto platform, investors can further diversify their portfolios by investing in other alternative asset classes—like private equity, real estate, and crypto. They can even take advantage of Alto’s Bring Your Own Deal (BYOD) program to invest in startups and other private opportunities.
Similarly, current Alto customers will have seamless access to Prosper, where they can use their tax-advantaged funds to invest in loans originated through Prosper’s online marketplace lending platform.
In today’s environment, many investors are interested in investing in consumer loans, given their potential for higher yields. However, this may not be the best alternative investment for you. As always, it’s essential that your investment portfolio aligns with your risk profile and financial goals. By offering a variety of alternative investment options, Alto is democratizing the investment process so individuals can balance their asset allocation strategy.
We are excited to welcome Prosper to Alto’s growing community of investment partners and appreciate this vote of confidence from John Goldston, Vice President, Capital Markets: “As a self-directed IRA provider, Alto has a strong reputation for its easy online account setup, transparent pricing, and excellent client service. We’re excited by this opportunity to integrate with Alto and join the firm’s growing list of leading investment partners.”
Expanding Access to Alternative Investments
Through integrated partnerships like these, we’re advancing our mission to make it easy and affordable for all investors—not just those with a high net worth—to build robust, diversified retirement portfolios using their tax-advantaged funds.