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Post by justuslee on Mar 21, 2018 16:30:51 GMT
"Warren Buffett" - My wealth has come from a combination of living in America, some lucky genes, and compound interest""
Compound interest is one of the most powerful financial tools in the world, but many people are not educated enough about it.
P2P lending facilitates the re-investment of cash flow/yields, paying interest on interest, this is compound interest at it's very best.
With recent low interest savings environment, compound interest has been negligible for UK savers in traditional banks and building societies.
With a well spread P2P portfolio, re-invested within the tax-free wrapper, savings now have a chance to recover real value and at a pace not seen for decades.
FOR ILLUSTRATION PURPOSES ONLY
National savings account direct ISA currently 1% p.a. (100% guaranteed savings account)
£10,000 Deposit
£1,000 p.m.
Over 15 Years
Balance at end of year 15 = £205,893
JustUs Balanced Compounding ISA @ 6.5% (Alternative Innovative Finance ISA - Capital At Risk - Past returns are no guarantee of future returns.)
£10,000 Deposit
£1,000 p.m
Over 15 years.
Balance at end of year 15 = £331,630
Don't lose your 2017/18 ISA allowances, your can open a JustUs ISA account in minutes and transfers in are taking between 15 and 30 days.
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guff
Posts: 730 
Likes: 707
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Post by guff on Mar 21, 2018 21:11:18 GMT
Warren Buffett is so good at compound interest, he can even calculate monthly rates from annual rates correctly. Unlike JustUs it would seem.
Not to worry, this year I started the same strategy with Co******al at 12%, so I should have over half a million in 15 years time.
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Post by justuslee on Mar 22, 2018 12:08:20 GMT
Good morning @magenta14 there's the appropriate disclaimer at the bottom of every post we make on the forum, we can't control the size of font unfortunately. As this is a P2P forum I would have expected that people know the difference between national savings accounts and P2P - hence the disclaimer below. I will of course edit the post to state this. "Capital at risk. The value of your investment can go down as well as up. See Risk Warnings for further information (justus.co/risk).
JustUs is a trading style of eMoneyHub Ltd and is authorised and regulated by the Financial Conduct Authority FRN 787900. JustUs is not covered by the Financial Services Compensation Scheme."
guff - here's the link to the calculator, I will stand corrected if the figures are incorrect and would appreciate you sharing your calculations/tool with us all. www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php |
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,442
Likes: 945
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Post by stub8535 on Mar 22, 2018 13:21:01 GMT
Good morning @magenta14 there's the appropriate disclaimer at the bottom of every post we make on the forum, we can't control the size of font unfortunately. As this is a P2P forum I would have expected that people know the difference between national savings accounts and P2P - hence the disclaimer below. I will of course edit the post to state this. "Capital at risk. The value of your investment can go down as well as up. See Risk Warnings for further information (justus.co/risk).
JustUs is a trading style of eMoneyHub Ltd and is authorised and regulated by the Financial Conduct Authority FRN 787900. JustUs is not covered by the Financial Services Compensation Scheme."
guff - here's the link to the calculator, I will stand corrected if the figures are incorrect and would appreciate you sharing your calculations/tool with us all. www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.phpI think you may be missing the point on a couple of counts justusleeYou use a each isa product and compare it to your investment product without a clear indication of the differences. There is evidence of lenders being attracted to p2p that have not a clue about the difference as a result of this smoke and mirrors tactic. To assume that all on the forum have the same level of financial awareness as someone running a platform, or at any level, when posting is something probably best avoided. You are not the only transgressor Lee as several publishers have been doing the same thing for a while. The frequency is increasing as the tax year comes to a close.
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Post by justuslee on Mar 22, 2018 13:33:12 GMT
stub8535 Your points are genuine, and being prompted to expand points of reference when things are maybe not as clear as they could be is helpful for all stakeholders, so many thanks to @magenta14 for bringing this to our attention. It's constructive positive forum engagement like this that encouraged us to re-engage. 
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,442
Likes: 945
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Post by stub8535 on Mar 22, 2018 13:52:57 GMT
stub8535 Your points are genuine, and being prompted to expand points of reference when things are maybe not as clear as they could be is helpful for all stakeholders, so many thanks to @magenta14 for bringing this to our attention. It's constructive positive forum engagement like this that encouraged us to re-engage. For clarrification my second comment above has auto corrected the word cash to each when referring to the post office isa. For clarity purposes a cash isa is just cash sat inside an isa wrapper with no investment element putting the capital at risk. The just us product is an investment product within an isa wrapper where capital can be lost if investments move against the lender. justuslee I add this for clarrification of my original and accept your feedback. Good to have you back interacting.
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Post by justusmike on Mar 22, 2018 14:47:55 GMT
Good afternoon @magenta14
I'd like to open some dialogue on your comment "For me I'd like to see quite a bit more information provided with respect to the JustUs property offerings as this would help in making better informed decisions: to support or not and for how much."
This is something we have been discussing and your input on what additional information you'd like to see would be valued, together with your thoughts on whether this information should be 'member' restrictive or within the 'publicly available site'.
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macq
Member of DD Central
Posts: 1,924
Likes: 1,191
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Post by macq on Mar 22, 2018 15:14:24 GMT
would guess Warren Buffett was talking of reinvesting divs from shares/funds which would have given a fairer comparison of income and risk but is harder to guess growth of shares going forward.But maybe showing what would have happened over the last 15 years of say P2P @ 6.5% v an average global income fund would have been interesting.
But comparing to something only paying 1% there was only going to be one winner
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