littleoldlady
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Post by littleoldlady on May 19, 2017 20:21:46 GMT
IMO it is not possible to match inflation with zero risk. I would put 95% into Premium Bonds. With average luck this should preserve most of the capital with always the chance of a big win. Then spread the other 5% across 2 or 3 high yield platforms paying 10% or more. If any PB wins a large amount, say over £1k in the first 18 months, then add that to the P2p.
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Post by corriefan on May 20, 2017 7:02:09 GMT
I'm lucky with my Premium Bonds which is probably why I'm a big fan. But the maximum of 50k leaves the original poster looking for a safe home for the remaining 50k. Some annoying overdue payments on P2P are making me think twice about trusting much of my money to this type of investment.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on May 20, 2017 10:05:09 GMT
I'm lucky with my Premium Bonds which is probably why I'm a big fan. But the maximum of 50k leaves the original poster looking for a safe home for the remaining 50k. Some annoying overdue payments on P2P are making me think twice about trusting much of my money to this type of investment. I had assumed it was a couple so £100k max.
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Post by kyle1873 on May 20, 2017 14:58:05 GMT
Surprised to not see Growth Street mentioned yet. If I'm not wrong they just won an award or a vote for being safe?? They have a good referal offer too, £100 each if investing £2g for a year.
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r00lish67
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Post by r00lish67 on May 20, 2017 15:26:15 GMT
Surprised to not see Growth Street mentioned yet. If I'm not wrong they just won an award or a vote for being safe?? They have a good referal offer too, £100 each if investing £2g for a year. It's certainly a good referral offer, but they're a young platform and despite offering a safeguard of sorts certainly wouldn't register anywhere near the lowest risk for me, purely because of their newness and the lack of track record that that dictates. I'd be interested to know if they did win an award if you can recall it?
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beh
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Post by beh on May 20, 2017 16:35:29 GMT
Surprised to not see Growth Street mentioned yet. If I'm not wrong they just won an award or a vote for being safe?? They have a good referal offer too, £100 each if investing £2g for a year. It's certainly a good referral offer, but they're a young platform and despite offering a safeguard of sorts certainly wouldn't register anywhere near the lowest risk for me, purely because of their newness and the lack of track record that that dictates. I'd be interested to know if they did win an award if you can recall it? It's probably based on www.4thway.co.uk/compare/ which they retweeted a few times - While I have funds with GS I agree it's a bit of a stretch for such a new platform and I'm wary of any review site that earns referral commission.
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r00lish67
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Post by r00lish67 on May 21, 2017 8:32:52 GMT
The thought did occur to me that it was the 4th Way comments that were being referred to, and I in fact drafted a comment which i decided to delete in the end. The basic gist was, despite their best intentions of impartiality, I can't help but wonder if their impartiality is just a little more swayed to positivity when a £100 bonus per sign up is proferred to them  To be fair (anticipating their possible reply), they do provide some good reasons as to why they consider them a great platform. However, their end result of GST finishing joint top of their comparison table (along with Landbay) with a risk score of 2/10 strikes me as a little premature when coupled with excerpts from their review such as: "We have little information as to Growth Street’s own financial health. It had a slightly positive financial position as of end 2015, but there is limited up-to-date information publicly available for businesses as small as Growth Street". I just don't see how a platform with very little track record and by the review site's own admission very little publicly available financial information can be assigned the very safest risk rating. Also, just looking at it at face value - GST are currently offering a very high rate for investors in the current market of 6.4% safeguarded with a £100 sign up bonus, with 30 day access to funds I think it is. By comparison, Ratesetter are currently offering 3-3.5% for a 5 year lock in . You don't get more money for nothing, and the more money you're getting is because of the increased risk principally due to how nascent the platform is. All of that said, I do invest with GST and have recently upped my investment. And, if you'd like a referral link, just PM me |
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DeafEater
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Post by DeafEater on May 21, 2017 9:42:30 GMT
Also, just looking at it at face value - GST are currently offering a very high rate for investors in the current market of 6.4% safeguarded with a £100 sign up bonus, with 30 day access to funds I think it is. By comparison, Ratesetter are currently offering 3-3.5% for a 5 year lock in . You don't get more money for nothing, and the more money you're getting is because of the increased risk principally due to how nascent the platform is. You might want to read the terms of the £100 cashback a little more closely  . You only get it if your money stays in and all interest is reinvested for 12 months. Hence although it is correct to say you probably have access to your money within 30 days if you need it, don't expect to get your cashback if you take the option.
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r00lish67
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Post by r00lish67 on May 21, 2017 16:08:48 GMT
Also, just looking at it at face value - GST are currently offering a very high rate for investors in the current market of 6.4% safeguarded with a £100 sign up bonus, with 30 day access to funds I think it is. By comparison, Ratesetter are currently offering 3-3.5% for a 5 year lock in . You don't get more money for nothing, and the more money you're getting is because of the increased risk principally due to how nascent the platform is. You might want to read the terms of the £100 cashback a little more closely . You only get it if your money stays in and all interest is reinvested for 12 months. Hence although it is correct to say you probably have access to your money within 30 days if you need it, don't expect to get your cashback if you take the option. Yeah, I'm aware of that, although worth pointing out as my wording wasn't very clear I agree. The other gotcha is to ensure you tick the 'capital and interest reinvested' option box, otherwise you also won't be eligible.
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elliotn
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Post by elliotn on May 22, 2017 5:34:00 GMT
Hi I was hoping any of you could help me with this If a close friend/relative of yours said they wanted to invest £100,000 in P2P but 1. only via one platform 2. wants the lowest risk subject to 3 below 3. expected returns must be a minimum of inflation+ 4. does not want to have to manage it at all 5. they would want to access their funds in full ideally after 2 years but no longer than 3 years at no cost , to buy a new home where should I suggest to get closest to this? Hi dandyYou may find some relevant info on these recent threads: Which platform is closest to savingsLeast Risky PlatformAs I'm sure has been pointed out, the main risk would be withdrawal cannot be guaranteed if there was a downturn in sentiment and there were no new funds to buy out your investment whereby you could be locked into the underlying loan (anything up to 5 years depending on the platform) with the associated risk of redemption. In normal market conditions Assetz Capital aim for 'instant' withdrawal from their QAA account and I have had pretty much the same for both Octopus Choice (primarily residential prop with a large parent co) and Landbay (residential BTL, considered conservative asset class). . Whilst I have sold out of Zopa (consumer loans) and Ratesetter (consumer, prop, SME) - typical entry points into p2p - there are fees to do so and as with all platforms you require lenders to be in the queue to buy you out. Economic impact of divorce with EU is the obvious known unkown in the immediate 2-3 year horizon.
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dandy
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Post by dandy on May 23, 2017 14:19:21 GMT
thanks to everyone for their comments
He has come to the conclusion that the most suitable product available is FC. the choice in the end was really between FC, RS and Z and the low rates for easy access (sub 3%) is not worth the risk bearing in mind this is mostly unsecured lending with thin provision funds -
He intends to autobid for 1,000 loans of £100 of A*/A only and 24 months or less remaining and let it do its thing. Is this likely to get deployed quickly?
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Post by df on May 23, 2017 14:40:47 GMT
thanks to everyone for their comments He has come to the conclusion that the most suitable product available is FC. the choice in the end was really between FC, RS and Z and the low rates for easy access (sub 3%) is not worth the risk bearing in mind this is mostly unsecured lending with thin provision funds - He intends to autobid for 1,000 loans of £100 of A*/A only and 24 months or less remaining and let it do its thing. Is this likely to get deployed quickly? It can take a while to get fully invested. Proportion of up to 24 months loans is very small (most of them are 5 years). restricting it to A*/A only wouldn't help either.
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Post by Deleted on May 23, 2017 16:16:56 GMT
After all the advice given how could the answer be FC? Shakes head in disbelief.....  |
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littleoldlady
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Post by littleoldlady on May 23, 2017 16:46:15 GMT
After all the advice given how could the answer be FC? Shakes head in disbelief..... I am gobsmacked.
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r00lish67
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Post by r00lish67 on May 23, 2017 16:48:50 GMT
It sounds like your friend has made up his mind dandy but I'm still going to urge him to reconsider, for the following reasons: 1) FC reserve their very lowest rates for the shortest terms of their 'safest' risk bands. So, your friend will often be achieving a 5.5% - 6.5% gross return (which is really 4.5%-5.5% after FC fees). As your 3rd criteria is to beat inflation, I would argue that achieving circa 3% net return after defaults would require good fortune. 2) You say they do not want to manage it all - setting up autobid is easy, but they will either have to plonk it in big chunks and experience long periods of cash drag, decreasing their return even further, or alternatively monitor it and top up as required to ensure sufficient funds for autobid. On the other end, when they want to withdraw, they will almost inevitably be stuck with some downgraded loans that they will need to periodically check to see whether they eventually recover. 3) Subjectively speaking, the quality selection criteria on FC is often perceived as being questionable for A+/A's. Businesses with little track history, negative net assets, and often scanty detail as to what they're using the loan for abound. See the FC 'questionable loan of the day' thread for some examples. Others have made great suggestions as to what to do, most of which I concur with so I won't expound further on those except perhaps to lean towards 'not P2P' for this case. |
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. You only get it if your money stays in and all interest is reinvested for 12 months. Hence although it is correct to say you probably have access to your money within 30 days if you need it, don't expect to get your cashback if you take the option. 
