IFISAcava
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Post by IFISAcava on Sept 3, 2017 23:57:09 GMT
Of course we need a deal more than the EU does - it's nearly half our trade and a tiny fraction of theirs.
And Branier is not doing anything single handedly, the UK negotiating strategy is at least as much to blame. Deliberate obfuscation, bad tempered accusations of blackmail for the EU simply sticking to their position made clear before and ever since the referendum, no clear realistic end goal and an active policy of wanting to have their cake and eat it all point to this process being led on our side by intellectual lightweights wearing ideological blinkers who have yet to grasp the difficult reality of the negotiations and our lack of good cards to play.
Anyway, putting a rant over the uselessness of current politicians aside, leaving the EU with no deal would be potentially catastrophic for the economy, markets, currency etc in the short to medium term, and P2P would be hit heavily. Saying "it'll all be OK under WTO rules" simply won't cut the mustard in the face of the chaos. The government does seem to have accepted there will need to be a lengthy transition, and that is why I am still heavily in P2P for now. But if it looked like a March 2019 no deal exit was likely, I'd be out in as close to a flash as the P2P platforms will facilitate, and buying Dollars, Euros, Swiss Francs, Yen, Bitcoin and Ether. Although it might of course be too late by then, and 20% of the pound has disappeared into thin air already...
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IFISAcava
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Post by IFISAcava on Sept 3, 2017 23:58:55 GMT
The Telegraph reported today that at least a third of the cabinet now believe no Brexit deal will be reached and we will therefore crash out. I'm not sure any investment would be safe in that event and we'd be in for Black Monday mark 2. I'm currently reducing all my investments until we have more certainty over Brexit and wouldn't put money in any platform for a long period at this point. So you are 100% cash. Brexit really isn't that scary in my opinion. "Crashing out" means same deal as NorwayIf only!
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IFISAcava
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Post by IFISAcava on Sept 4, 2017 0:01:25 GMT
Of course, it may all be eclipsed by a war in Korea, which does kind of put things in perspective.
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Post by peerlessperil on Sept 4, 2017 0:02:15 GMT
Back to the original question...
Leaving it in the bank (well, 3 banks to ensure FSCS coverage) is probably the right answer if you need to ensure both instant liquidity and the safe return of capital.
However, if the end purpose of the funds in question is to purchase property then investments that generate an income with less downside risk than property become very interesting.
There are closed-end funds that invest in senior debt secured on property (mostly commercial, but not exclusively). Because they are closed-end funds like investment trusts there is always likely to be liquidity (if not at a price you like) and you avoid the problems that caused the open-ended property funds to halt withdrawals recently.
These funds pay a reasonable dividend yield, and you can take advantage of your dividend tax allowance (or hold in an ISA). Because they tend to focus on senior debt they should in theory perform better than the NAV of the properties they are secured on in a property downturn. Whilst you may have to take a capital loss on exit if the proverbial hits the fan, 18 months accumulated dividends should soften the blow substantially. Plus whatever property you purchase is likely to have dropped in price even more.
You will need a stockbroker (or online equivalent), and because these investments are listed shares there are all sorts of equity market risks to consider. If you are unfamiliar with shares then this is not remotely suitable.
If you start your research by googling "property debt investments" or "real estate debt trusts" you will find plenty of relevant reading material to help you form your own informed opinion.
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hazellend
Member of DD Central
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Post by hazellend on Sept 4, 2017 10:21:05 GMT
Of course we need a deal more than the EU does - it's nearly half our trade and a tiny fraction of theirs. And Branier is not doing anything single handedly, the UK negotiating strategy is at least as much to blame. Deliberate obfuscation, bad tempered accusations of blackmail for the EU simply sticking to their position made clear before and ever since the referendum, no clear realistic end goal and an active policy of wanting to have their cake and eat it all point to this process being led on our side by intellectual lightweights wearing ideological blinkers who have yet to grasp the difficult reality of the negotiations and our lack of good cards to play. Anyway, putting a rant over the uselessness of current politicians aside, leaving the EU with no deal would be potentially catastrophic for the economy, markets, currency etc in the short to medium term, and P2P would be hit heavily. Saying "it'll all be OK under WTO rules" simply won't cut the mustard in the face of the chaos. The government does seem to have accepted there will need to be a lengthy transition, and that is why I am still heavily in P2P for now. But if it looked like a March 2019 no deal exit was likely, I'd be out in as close to a flash as the P2P platforms will facilitate, and buying Dollars, Euros, Swiss Francs, Yen, Bitcoin and Ether. Although it might of course be too late by then, and 20% of the pound has disappeared into thin air already...A basket of market weight global shares, such as vanguard all world ETF, will give you a spread of currencies and equities, with only about 5 - 10 percent weighted to the UK. A plunge in sterling will be a very lucrative event for holders of such a non UK based holding of equities. Profits could then be recycled into UK assets which will seem cheap by comparison.
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IFISAcava
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Post by IFISAcava on Sept 4, 2017 10:54:51 GMT
[/quote]A basket of market weight global shares, such as vanguard all world ETF, will give you a spread of currencies and equities, with only about 5 - 10 percent weighted to the UK.
A plunge in sterling will be a very lucrative event for holders of such a non UK based holding of equities.
Profits could then be recycled into UK assets which will seem cheap by comparison.
[/quote]
Good point. Though I'd also want something not invested in stocks
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mrp2p
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Post by mrp2p on Sept 5, 2017 10:41:37 GMT
Firstly, thanks for all the responses over the last few days. It's much appreciated.
Taking everything in, the pros/cons and returns v risk, plus how easy it is to liquidise my money has helped me make up my mind.
Unfortunately I think I'll have to go for the boring option. Which kills me slowly from inside but it's the sensible thing to do.
I'll probably go for something similar to the below as the cash is released at various times for me to invest:
£70k Ford Money @ 1.7% 1yr (me)
£70k Ford Money @ 1.7% 1yr (wife)
£20k Santander 123 @ 1.5% (me)
£20k Santander 123 @ 1.5% (wife)
£20k Santander 123 @ 1.5% (joint)
£30k Assetz Instant/30day Acc @ 4%
£30k Octopus @ 4%
Yes, I know that's more than 200k. I've decided I'm going to sell a few other assets taking me to around £260k
The above are all easy access and the 1yr' investments will finish before Brexit which is around when I'll need the cash.
I'm invested in a few other long term items such as Gold and I have a number of rental properties so the above diversifies my 'portfolio'.
Thanks,
M.
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Post by df on Sept 5, 2017 18:59:53 GMT
Firstly, thanks for all the responses over the last few days. It's much appreciated. Taking everything in, the pros/cons and returns v risk, plus how easy it is to liquidise my money has helped me make up my mind. Unfortunately I think I'll have to go for the boring option. Which kills me slowly from inside but it's the sensible thing to do. I'll probably go for something similar to the below as the cash is released at various times for me to invest: £70k Ford Money @ 1.7% 1yr (me)
£70k Ford Money @ 1.7% 1yr (wife)
£20k Santander 123 @ 1.5% (me)
£20k Santander 123 @ 1.5% (wife)
£20k Santander 123 @ 1.5% (joint)
£30k Assetz Instant/30day Acc @ 4%
£30k Octopus @ 4%
Yes, I know that's more than 200k. I've decided I'm going to sell a few other assets taking me to around £260kThe above are all easy access and the 1yr' investments will finish before Brexit which is around when I'll need the cash. I'm invested in a few other long term items such as Gold and I have a number of rental properties so the above diversifies my 'portfolio'. Thanks, M. There are also offers on smaller amounts from TSB (3%), Nationwide (5% for first year), Bank of Scotland (2%), Tesco (3%), Lloyds (2%) and various regular saving accounts paying up to 5%.
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Post by martin44 on Sept 5, 2017 20:52:33 GMT
Firstly, thanks for all the responses over the last few days. It's much appreciated. Taking everything in, the pros/cons and returns v risk, plus how easy it is to liquidise my money has helped me make up my mind. Unfortunately I think I'll have to go for the boring option. Which kills me slowly from inside but it's the sensible thing to do. I'll probably go for something similar to the below as the cash is released at various times for me to invest: £70k Ford Money @ 1.7% 1yr (me)
£70k Ford Money @ 1.7% 1yr (wife)
£20k Santander 123 @ 1.5% (me)
£20k Santander 123 @ 1.5% (wife)
£20k Santander 123 @ 1.5% (joint)
£30k Assetz Instant/30day Acc @ 4%
£30k Octopus @ 4%
Yes, I know that's more than 200k. I've decided I'm going to sell a few other assets taking me to around £260kThe above are all easy access and the 1yr' investments will finish before Brexit which is around when I'll need the cash. I'm invested in a few other long term items such as Gold and I have a number of rental properties so the above diversifies my 'portfolio'. Thanks, M. I think wise decision.. i went into Lendy 2 an a half years ago at c200k and heeded the info on here around nov 16 and exited 140k , and went down the (my) trusted property refurb route.... i would not dream of doing that today, in the current Lendy climate.
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r00lish67
Member of DD Central
Posts: 2,691
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Post by r00lish67 on Sept 6, 2017 7:40:31 GMT
Firstly, thanks for all the responses over the last few days. It's much appreciated. Taking everything in, the pros/cons and returns v risk, plus how easy it is to liquidise my money has helped me make up my mind. Unfortunately I think I'll have to go for the boring option. Which kills me slowly from inside but it's the sensible thing to do. I'll probably go for something similar to the below as the cash is released at various times for me to invest: £70k Ford Money @ 1.7% 1yr (me)
£70k Ford Money @ 1.7% 1yr (wife)
£20k Santander 123 @ 1.5% (me)
£20k Santander 123 @ 1.5% (wife)
£20k Santander 123 @ 1.5% (joint)
£30k Assetz Instant/30day Acc @ 4%
£30k Octopus @ 4%
Yes, I know that's more than 200k. I've decided I'm going to sell a few other assets taking me to around £260kThe above are all easy access and the 1yr' investments will finish before Brexit which is around when I'll need the cash. I'm invested in a few other long term items such as Gold and I have a number of rental properties so the above diversifies my 'portfolio'. Thanks, M. There are also offers on smaller amounts from TSB (3%), Nationwide (5% for first year), Bank of Scotland (2%), Tesco (3%), Lloyds (2%) and various regular saving accounts paying up to 5%. An extra £350 interest for you on your first two: Atom bank are doing a 1 year fix @ 1.95% www.atombank.co.uk/fixed-saver
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mrp2p
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Post by mrp2p on Sept 6, 2017 13:53:52 GMT
Sounds like I'm making the right ( dull) decision. Thanks all  Good spot r00lish67. I see it's covered by FSCS so I'm happy with that instead of Ford Money. Also looked into ISA's for 1yr but the rates are terrible. Need to get as much as I can over to my lower tax rate wife  |
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macq
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Post by macq on Sept 6, 2017 21:33:57 GMT
Sounds like I'm making the right ( dull) decision. Thanks all Good spot r00lish67. I see it's covered by FSCS so I'm happy with that instead of Ford Money. Also looked into ISA's for 1yr but the rates are terrible. Need to get as much as I can over to my lower tax rate wife Just a heads up but this weeks MSE newsletter from Martin Lewis mentions the Atom one year deal but says it may close by Friday
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