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Post by chielamangus on Oct 28, 2015 13:47:18 GMT
Pensions (value thereof). Here's a cautionary tale. A bloke I know had four pensions from different sources, having moved around a lot in his working life. He would get regular annual statements from two of what they were worth, and everything looked quite comfortable for a distant retirement. Mind you, he didn't quite trust the financial institutions nor government so he also purchased a rental property. Come retirement date when he thought all these pensions fell due, he started putting the mechanisms in motion to get his pensions. But just before the due dates, the stock market fell drastically. The value of one pension was fixed on the fund value of that date. That was a 40 per cent reduction in one pension, with no option for any other action. Another pension also suffered the same fall in value, and annuity rates had also fallen drastically since the year before - another 40 per cent decline from expectations. But there were two more smaller pensions. First surprise was that one could have been taken 5 years earlier. He had no idea that teachers, university lecturers and the rest of the educational sector retired at 60. Still, it was there, waiting for him. Well, a part was. Many years ago, after he had signed up to the pension, a Labour government switched the pension link from the university salary scale to the CPI (or RPI) index. Far from getting a given percentage of a top of the grade lecturer's current salary, he got the CPI index pension - that was a 35 per cent loss. Still, there was always the state pension. That couldn't be reduced, could it? Wrong! Because he had lived abroad for part of his working life and he wanted to live abroad in retirement, he came under some obscure combination of rules which civil servants love to insert into legislation which caught him out just nicely. A twenty per cent reduction there. Amazing how so many pension values could be substantially below reasonable expectations.
The good news was that the rental property proved a good investment. Just as well.
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niceguy37
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Post by niceguy37 on Oct 28, 2015 14:53:24 GMT
I had an excellent company pension, plus a significant AVC, but that was in Zimbabwe, and when the currency collapsed it was wiped out.
Then I took a job partly for it's final-salary pension, but when Gordon Brown did his stealth tax on pensions, the company closed the pension.
So I've gone for the Buy-to-Let as well. But Buy-to-Lets are a tempting target for the Chancellor, so we'll have to see what happens between now and my retirement in 17 years.
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Post by Deleted on Oct 28, 2015 16:48:03 GMT
P2P capped at 5% of net worth.
SS presently 9% of P2P likely to rise to 15% and stop there. Strong believer in diversity, 6 portals, +400 loans.
Compared to UK shares (normally earn 10 to 17% a year on shares, so falls into the lowest quartile, but the P2P details are sometimes more interesting and more transparent). Compared to US shares (normally earn 20 to 40% in the US but far riskier so US takes more reading and thinking). On the other hand P2P is taking me away from learning Italian.
Never value the house, always value the pension.
Struggle to believe 12% to the lender (+12% to the borrower) is sustainable so prefer shorter term loans at these rates. Find the whole idea of ROCE >10% too attractive, so wary.
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Post by Financial Thing on Oct 28, 2015 17:33:18 GMT
P2P capped at 5% of net worth. SS presently 9% of P2P likely to rise to 15% and stop there. Strong believer in diversity, 6 portals, +400 loans. Compared to UK shares (normally earn 10 to 17% a year on shares, so falls into the lowest quartile, but the P2P details are sometimes more interesting and more transparent). Compared to US shares (normally earn 20 to 40% in the US but far riskier so US takes more reading and thinking). On the other hand P2P is taking me away from learning Italian. Never value the house, always value the pension. Struggle to believe 12% to the lender (+12% to the borrower) is sustainable so prefer shorter term loans at these rates. Find the whole idea of ROCE >10% too attractive, so wary. @bobo if you are earning those types on market crushing returns on your shares, why on earth would you settle for p2p risks/ lower returns?? What investments earning 20-40% stateside consistently?
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mikes1531
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Post by mikes1531 on Oct 28, 2015 18:32:20 GMT
Just checked and SS represents just over 60% of my P2P/Crowdfunding portfolio ... As a % of all my net worth ... SS represents only 4% overall... I'd say your biggest risk looking at your portfolio is a property downturn ^^;; : Perhaps you were commenting just on the risk of QV's P2P portfolio. If not, you may have jumped to your conclusion. If SS is 60% of QV's P2P, but only 4% of his total net worth, then his total P2P is about 7% of his total net worth. So while his P2P might be nearly all at risk in a property crash, it's still a very small part of his total net worth. As such, I'd say that QV's biggest portfolio risk depends entirely on where the other 93% of his net worth is invested.
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Maestro
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Post by Maestro on Oct 28, 2015 18:50:02 GMT
P2P capped at 5% of net worth. SS presently 9% of P2P likely to rise to 15% and stop there. Strong believer in diversity, 6 portals, +400 loans. Compared to UK shares (normally earn 10 to 17% a year on shares, so falls into the lowest quartile, but the P2P details are sometimes more interesting and more transparent). Compared to US shares (normally earn 20 to 40% in the US but far riskier so US takes more reading and thinking). On the other hand P2P is taking me away from learning Italian. Never value the house, always value the pension. Struggle to believe 12% to the lender (+12% to the borrower) is sustainable so prefer shorter term loans at these rates. Find the whole idea of ROCE >10% too attractive, so wary. @bobo care to elaborate if you are really doing 20-40% annually on US equities? Even Warren Buffet/Berkshire Hathaway (best investor I know of) has compounded just under 20%.
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Post by Deleted on Oct 28, 2015 20:55:47 GMT
ah but the risks come through and make the +20% something else which is painful, so roughly 4 years out of 5 work well and 1 year out of 5 hurt like B@@@y  |
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jamesc
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Post by jamesc on Oct 29, 2015 8:54:05 GMT
40% in SS and the rest in FC although I want to diversify across other platforms by taking money from FC, just started with FS but loan flow is slow and considering AC,MT and TC does anyone know do any of these have introduction bonuses, etc.
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Post by GSV3MIaC on Oct 29, 2015 8:57:32 GMT
Most do at some time. Let me know if you want me to recommend lending club to you! (PM me).
Or RS.
But not the ones you mention at the moment, AFAIK. 8>.
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niceguy37
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Post by niceguy37 on Oct 29, 2015 9:18:14 GMT
40% in SS and the rest in FC although I want to diversify across other platforms by taking money from FC, just started with FS but loan flow is slow and considering AC,MT and TC does anyone know do any of these have introduction bonuses, etc. No referral bonuses I know of, but stevet talks of incentives for MT on p2pindependentforum.com/thread/3582/diversification-opportunity
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ablender
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Post by ablender on Oct 29, 2015 9:24:49 GMT
As I mentioned above a large part of my p2p is in SS. I am thinking for when ISA comes around. Do you know if we can include more than one p2p platform in an ISA? That can help with diversification.
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star dust
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Post by star dust on Oct 29, 2015 9:42:49 GMT
As I mentioned above a large part of my p2p is in SS. I am thinking for when ISA comes around. Do you know if we can include more than one p2p platform in an ISA? That can help with diversification. Invest Up are supposed to be launching a P2P ISA next year, and their platform allows for investment in a range of P2P platforms including AC, SS, TC and others, in one portfolio. There is a thread here .
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niceguy37
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Post by niceguy37 on Oct 29, 2015 9:43:27 GMT
As I mentioned above a large part of my p2p is in SS. I am thinking for when ISA comes around. Do you know if we can include more than one p2p platform in an ISA? That can help with diversification. Up www.investUP.co are advertising an ISA-wrapper that will allow multiple p2p platforms in a single ISA. Included platforms so far ar Assetz Capital, Savings Stream, Thin Cats, Archover, Rebuilding Society, Crowd"Fund and Ablrate, and they say they're adding more.
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ablender
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Post by ablender on Oct 29, 2015 9:53:30 GMT
Thanks for the info. I will look it Up.
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stevio
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Post by stevio on Oct 29, 2015 18:52:44 GMT
As I mentioned above a large part of my p2p is in SS. I am thinking for when ISA comes around. Do you know if we can include more than one p2p platform in an ISA? That can help with diversification. Up www.investUP.co are advertising an ISA-wrapper that will allow multiple p2p platforms in a single ISA. Included platforms so far ar Assetz Capital, Savings Stream, Thin Cats, Archover, Rebuilding Society, Crowd"Fund and Ablrate, and they say they're adding more. They will charge you a 0.5% fee on £500+ - can you really trust a company that cant afford a .co m
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