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Post by nooneere on Aug 7, 2020 20:40:43 GMT
If you are about to retire and are saying the money might be needed to last 40 years (as you say), I would suggest you at least consider adding buying an annuity and add that to you list. W35 Should always be looked at, but I just checked and the best buy £100K level annuity from age 65 will give you 54% of the state pension. And gilt yields are still heading down so this won't improve soon.
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Post by tommycatz on Aug 7, 2020 22:49:39 GMT
As a 40% tax payer, I've upped work pension contributions to 20% + my employer pays 15%. Gutted P2P has been impacted as I was receiving £500 a month tax free from FISAS. Got most of RS funds out and in premium bonds for now. Slowly receiving AC and LW. One to watch is if the pound becomes stronger against the dollar, buy dollars especially if +$1.6. If $2 to the pound. Buy lots and wait. The US comes out of their recessions quickly.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 8, 2020 11:24:00 GMT
4. Cash held in Premium Bonds (I know I know, not an investment ) Oh but it is, it is!
"Premium Bonds are UK Government securities issued under the National Loans Act 1968, and the National Savings (No 2) Regulations 2015." (Source: NS&I)
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Post by scepticalinvestor on Aug 8, 2020 12:47:06 GMT
A couple of posters have now mentioned that there still are a handful of good P2P outfits out there. Out of interest, it would be good to know what a few of them are, in people's opinions.
Don't know if it qualifies as P2P but I can think of Lendinvest.
What are the others?
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aju
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Post by aju on Aug 8, 2020 13:14:26 GMT
Everything coming back from RS is going into National Savings. (Unless someone is going to tell me that is actually an investment ;-0 ) Only if you stay in the savings side otherwise it's investments with a safety net!. That said I've always considered PB to be more like gambling especially since they have loads more people in there too. My brother would argue against me on that one based on his experience - you do have to have a lot of money in there to be a gainer though I think. we had a big winner here in Wilts recently so i'm guessing we would actually have to wait a while again.
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iRobot
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Post by iRobot on Aug 8, 2020 13:17:09 GMT
A couple of posters have now mentioned that there still are a handful of good P2P outfits out there. Out of interest, it would be good to know what a few of them are, in people's opinions. Don't know if it qualifies as P2P but I can think of Lendinvest. What are the others? This thread may give you some pointers - but beware, forum polls have been known to ultimately prove to be harbingers of platform failure! For my money, Bridge Crowd. Pros good origination rate - usually 2 to 4 offerings per week; almost only bridging loans and a high percentage domestic property; average rate somewhere around 7% per annum; excellent recoveries history (hoping I haven't jinxed it now!); often invest in their own loans (so not true P2P - this would matter if losses did materials as they can't be offset against other P2P income); as far as I can recall, always to a new borrower (so no over-exposure when it comes to borrowers, see below); self select and/or auto invest, above average comms on defaulted loans (in my experience); plans for product diversification (long announced plans it has to be said, still not materialised though) they do have a Secondary Market with a discount (as usual, shouldn't be relied on for selling but can be useful for building a diverse portfolio more quickly) Cons minimum £5k per loan processes don't appear to be fully automated, so maybe not quite as 'slick' as other operations <redacted> Once upon a time I would have said Ablrate but, for me, some of the shine has left that platform and I'm now - rightly or wrongly - of the opinion that there is too much platform exposure to too few borrowers. That said, it could still play a part in a diverse 'P2P' portfolio, just be conscious of the platform's whole loan book.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 8, 2020 13:22:09 GMT
A couple of posters have now mentioned that there still are a handful of good P2P outfits out there. Out of interest, it would be good to know what a few of them are, in people's opinions. Don't know if it qualifies as P2P but I can think of Lendinvest. What are the others? Depends on what you mean by good? Well the ones that tend to come up are Loanpad, Crowdproperty, Kufflink, Assetz, Unbolted, perhaps Proplend ... Lendinvest & Bridgecrowd arent true P2P but make lists. Landlordinvest is good but small so isnt mentioned much. Folk2folk, Invest & Fund have good reputations though not referenced ever. Similarly HNW & Capitalrise. As ever beauty is in the eye of the beholder
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Post by scepticalinvestor on Aug 8, 2020 15:22:53 GMT
Thanks iRobot and ilmoro. In the current scenario, by "good" I guess I mean P2P outfits that you would be comfortable using to invest (or add to existing investments) currently and that (in your opinion) present an acceptable risk/reward ratio as things stand.
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Post by diversifier on Aug 8, 2020 19:01:37 GMT
Everything coming back from RS is going into National Savings. (Unless someone is going to tell me that is actually an investment ;-0 ) For me, I agree that’s part of the solution. The guarantee isn’t limited to only the £85k of FSCS, the U.K. Gov stands behind anything up to the £1m account limit. For those with funds over £1m looking for guarantees to park another fraction, I also find the Hargreaves Lansdown Active Savings account useful. This provides an easy dashboard as a front-end to another dozen or so bank accounts with 1%’ish interest, each with its own £85k guarantee, allowing you to park another £1m total under gov guarantee, before one is forced anyway to search out Return because the Risk is no longer guaranteed.
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Post by Harland Kearney on Aug 8, 2020 20:00:11 GMT
Everything coming back from RS is going into National Savings. (Unless someone is going to tell me that is actually an investment ;-0 ) For me, I agree that’s part of the solution. The guarantee isn’t limited to only the £85k of FSCS, the U.K. Gov stands behind anything up to the £1m account limit. For those with funds over £1m looking for guarantees to park another fraction, I also find the Hargreaves Lansdown Active Savings account useful. This provides an easy dashboard as a front-end to another dozen or so bank accounts with 1%’ish interest, each with its own £85k guarantee, allowing you to park another £1m total under gov guarantee, before one is forced anyway to search out Return because the Risk is no longer guaranteed. For those curious about HL Active savings, the cash account (the holding account) is backed up by Barclays 85k before you deploy your cash into new savings account. So please beaware of that if you already having savings with Barclays not to leave swathes of cash unallocated in the account.
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Post by Ace on Aug 8, 2020 21:27:30 GMT
A couple of posters have now mentioned that there still are a handful of good P2P outfits out there. Out of interest, it would be good to know what a few of them are, in people's opinions. Don't know if it qualifies as P2P but I can think of Lendinvest. What are the others? Here's my tuppence worth on some of my favourite platforms across a wide range on the risk/reward spectrum, ordered from low to high (stated as fact, but obviously just the honest opinion of an amateur investor with 2.5 years P2P experience so far): - Loanpad - safest of all current P2P platforms. A banker for my P2P funds while awaiting assignment to more adventurous opportunities.
- CrowdProperty - so trusted by me that I barely do any DD on the individual loans. A thoroughly professional outfit.
- Unbolted - seems to run itself without interference or losses. Can be difficult to get funds initially deployed. Not totally sure how it will perform during the impending recession.
- ABLrate - expect a few losses at these rates, but the most tenacious of all platforms when trying to recover potential losses. You would think it was their money that was at risk. Beware multiple connected loans.
- AxiaFunder - the very top of the risk/reward curve, but I like it a lot. So much so that I've made a major investment (for me) in the company. Low frequency of cases makes it hard to get the diversification that this sort of investment really needs right now. Hopefully the frequency will improve soon. Definitely should expect some case losses here, but none yet.
I'm also still reinvesting or adding to CapitalRise, Proplend, Kuflink, Brickowner, AssetzCapital, AssetzExchange, LandlordInvest, Uown, OnStep.
I would like to invest with BridgeCrowd, but the £5k per loan minimum makes it a little too steep for me to be able to get the diversification within a platform that I would like.
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spiral
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Post by spiral on Aug 9, 2020 9:38:05 GMT
I also find the Hargreaves Lansdown Active Savings account useful. This provides an easy dashboard as a front-end to another dozen or so bank accounts with 1%’ish interest, each with its own £85k guarantee, Just taken a look at this. They only appear to have 2 instant access accounts available paying 0.5% and 0.3% respectively. Having just checked, the best 2 accounts currently available (excl NS&I or temporary bonus) pay 0.8 and 0.72% respectively. This means that on 170K HL account would return £680 pa whereas a self selector would get £1292 pa, almost twice as much. Is it a case that you feel that this loss of interest is acceptable for the simplicity of the account (Pro rata = £3600 pa for £1 million) or am I missing something from my quick research?
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Post by Harland Kearney on Aug 9, 2020 13:26:07 GMT
I also find the Hargreaves Lansdown Active Savings account useful. This provides an easy dashboard as a front-end to another dozen or so bank accounts with 1%’ish interest, each with its own £85k guarantee, Just taken a look at this. They only appear to have 2 instant access accounts available paying 0.5% and 0.3% respectively. Having just checked, the best 2 accounts currently available (excl NS&I or temporary bonus) pay 0.8 and 0.72% respectively. This means that on 170K HL account would return £680 pa whereas a self selector would get £1292 pa, almost twice as much. Is it a case that you feel that this loss of interest is acceptable for the simplicity of the account (Pro rata = £3600 pa for £1 million) or am I missing something from my quick research?
My only reason for holding (but I don't no longer its too low) was ammo for investments into shares to reduce cash drag. HL Active Savings doesnt' really make any senese outside of this in my oppuion, they haven't had any "market leading" rates for anymore than a month at any given time. The simplicity is likely a big reason, before the mass of cuts the offers they were giving were actually quite respectble but not leading. I got 1.45% on Conventry banking, all without the weeks of hassle of opening a account ect, I believe thats the main driving force that & cash drag reduction on cash in HL investments.
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Post by diversifier on Aug 9, 2020 14:15:26 GMT
I also find the Hargreaves Lansdown Active Savings account useful. This provides an easy dashboard as a front-end to another dozen or so bank accounts with 1%’ish interest, each with its own £85k guarantee, Just taken a look at this. They only appear to have 2 instant access accounts available paying 0.5% and 0.3% respectively. Having just checked, the best 2 accounts currently available (excl NS&I or temporary bonus) pay 0.8 and 0.72% respectively. This means that on 170K HL account would return £680 pa whereas a self selector would get £1292 pa, almost twice as much. Is it a case that you feel that this loss of interest is acceptable for the simplicity of the account (Pro rata = £3600 pa for £1 million) or am I missing something from my quick research?
Sorry, yes - I was (and am) looking for simplicity and guarantees at this end of the spectrum. In my view, although fractionally 0.5% seem very different to 1%, it’s only 0.5% difference in absolute terms. In more normal times, that’s a small thing, when overall allocation makes more difference, rather it’s an optimisation at bottom level Only two listed? I see eight listed: Charter, Coventry, United Trust, Metro, Kent, Close, Paragon, Arbuthnot Charter, Close, Paragon, Metro are all 0.9-1.1% for 2-3 yr fixed, the rest are lower. If you’re looking for 1% instant access guaranteed, NS&I is the only thing I know, the purpose of looking elsewhere is if you run out of space in the £1m guarantee. It’s worth pointing out the change in perspective: Every single one of those eight institutions, I wouldn’t even *consider* putting my money in for the measly difference between 1% bank interest vs 0% in somewhere like Barclays, to compensate for the risk of institution failure. Same with Marcus from Goldman Sachs. It’s not even *close* to a sane investment decision. I’m putting my money there purely because UK gov subsidises those institutions to exist by credit guarantees. While half the country is on furlough, let that sink in: UK gov is subsidising Goldman Sachs and at least a dozen other banks to remain in business, otherwise they would all have the same bank run as Ratesetter (actually faster and harder, because their interest rate is lower), and be insolvent within the week. That’s what the “free market” looks like in 2020.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Aug 9, 2020 14:40:09 GMT
Just taken a look at this. They only appear to have 2 instant access accounts available paying 0.5% and 0.3% respectively. Having just checked, the best 2 accounts currently available (excl NS&I or temporary bonus) pay 0.8 and 0.72% respectively. This means that on 170K HL account would return £680 pa whereas a self selector would get £1292 pa, almost twice as much. Is it a case that you feel that this loss of interest is acceptable for the simplicity of the account (Pro rata = £3600 pa for £1 million) or am I missing something from my quick research?
Only two listed? I see eight listed: Charter, Coventry, United Trust, Metro, Kent, Close, Paragon, Arbuthnot There are only two Instant (Easy in HL lingo) Access listed.
All the others you refer to tie your money up for at least one month, culminating with the last you cite which has a term of one year.
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