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Post by Deleted on Jan 4, 2018 19:04:39 GMT
These percentage distribution questions always seem to go down well, I've seen proportion per p2p platform, percentage of wealth in p2p and others.
On this occasion I'm interested to see how p2p sits within people's full investment portfolio as I think about mine. For starters ......
Cash 30% (Reducing as I build positions elsewhere)
P2P 30% (At my ceiling, may reduce)
Equities 20% (Increasing month on month with pound cost averaging deposits. Moneyfarm&Vanguard Trackers)
Bonds 2%
BTL 8% (Entirely through Property Partner)
Employer Shares 10%
Personally I'm currently looking at diversifying property into REITs or similar ITs and perhaps having a very small dabble in Crypto (circa 1-2%), although may have missed the boat!
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Post by p2player on Jan 5, 2018 8:01:24 GMT
If I may be so bold, percentage of wealth is the stupidest measurement known to man kind. if we don’t know what your wealth is then it is utterly meaningless. Without the critical context it’s just random numbers. For example, someone 30% cash when the extent of all their liquid assets is only 10k, would likely be deserving of the title Right Idiot.  Beyond the above, there is also the question of personal circumstances ..... “john” might be 60% cash on a slightly chunky asset base because he’s got school fees to pay, doing major refurb on the house or whatever. meanwhile “Simon” might only be 1% cash because he’s got a multi million stock portfolio and he is comfortably living off the dividends, and 1% in simons world is a hefty number. I guess what I am trying to say is do what’s right for you and forget about The Jones’s ! |
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Post by martinde21 on Jan 5, 2018 14:59:10 GMT
Hi
Interesting question. I am diversified across a multiple number of P2P platforms, savings accounts and other investments.
I'm nervous about folks posting more detailed information than this on their personal circumstances as this is a public forum which can be read by anyone....
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Post by captainconfident on Jan 5, 2018 16:26:44 GMT
Cash 5%
P2P 37%
Equities 18%
Bonds 5%
Private business loans 35%
I'm more Simon than John or 'Right Idiot'
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Post by dan1 on Jan 5, 2018 17:24:51 GMT
If you're interested in comparing risk then it's probably as important to consider what lies outside of your investment portfolio as inside it. For example, I'd be quite happy to be 100% P2P if I had a civil service pension paying me £100k+ a year and a £1m+ primary residence. I like to think of defined benefit pensions as more akin to (index linked) bonds - very valuable that can free you to take much greater risk with your investment portfolio.
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Post by beeje13 on Jan 5, 2018 17:39:27 GMT
I know this is a website focused on P2P but I am always surprised reading through these threads just how much people have put into P2P.
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Post by Deleted on Jan 5, 2018 18:01:37 GMT
Well there is a can of worms opened I didn't realise I was introducing!  p2player I completely understand the point about what % of cash we all hold, fairly meaningless but considering portfolio breakdowns as "the stupidest measurement known to man kind" WOW !! I find it very thought provoking and a check on whether what I'm doing is considered normal practice or overly risky/safe by comparing with others. martinde21 fair enough although despite it being a public forum I feel happy to share behind an unidentifiable username captainconfident thanks for sharing and not leaving me hanging like a "right idiot" albeit I'm closer to John than Simon in our all new financial analogy dan1 an excellent point, despite being nowhere near pensionable age I don't really consider it when making investments, perhaps I have little faith in what it will look like when I get there beeje13 you may be right but with everyone warning of shares bubbling, rising rates affecting bonds, property prices peaking I figure it's as good a bet as the rest - diversify!
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IFISAcava
Member of DD Central
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Post by IFISAcava on Jan 5, 2018 18:08:57 GMT
If you're interested in comparing risk then it's probably as important to consider what lies outside of your investment portfolio as inside it. For example, I'd be quite happy to be 100% P2P if I had a civil service pension paying me £100k+ a year and a £1m+ primary residence. I like to think of defined benefit pensions as more akin to (index linked) bonds - very valuable that can free you to take much greater risk with your investment portfolio. They don't exist anymore. The messing with AA, LTA and massively increased contributions mean no one in a public sector pension can get more than half at most that now. Maybe a few lucky people carried over from last century.
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Post by beeje13 on Jan 5, 2018 19:55:49 GMT
jester yes high equity valuations and gaining diversity are the reasons why I participate in p2p. I don't need income from my investments, so long-term returns are what I'm looking for and P2P will trail equities I think.
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Post by df on Jan 5, 2018 20:54:14 GMT
Approximately 30% in P2P and the rest in banks and building societies.
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hazellend
Member of DD Central
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Post by hazellend on Jan 5, 2018 22:12:09 GMT
Approximately 30% in P2P and the rest in banks and building societies. Why? 
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Post by captainconfident on Jan 5, 2018 22:46:11 GMT
Yes jester, I did have it in mind not to leave you hanging like a 'right idiot'. There's no harm in sharing these stats on an anonymous forum and there is something to learn. I'm interested in the reasons anyone is holding cash, and also that, on what is mentioned so far, in the 30's of % is the P2P share people are comfortable with. (bad sentence, but I've had a couple of libations). So where would one hold cash at the moment? My 5% is essentially working capital for my life and also for my self-employed business. We're all turned into speculators by the interest rate/inflation disparity. What else can you do? |
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stevio
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Post by stevio on Jan 5, 2018 22:47:52 GMT
You seem to want someone to say "yes, that's about what % I have in P2P" to make you feel more confident you have made the right decision. Asking on a P2P forum is highly bias as most will have a higher % in P2P or they wouldn't waste their time here (you would hope)
Cash to me is for day to day bills and emergencies. What that level is, is very personal to someone's situation and their income to replace it. At 30% cash I at least hope you have maxed out all the high interest accounts?
Your BTL is not really BTL, just a subset of P2P/Crowdfunding. It's not subject to the same issues, tax treatment and gains/losses as true BTL
Your Employer shares are a subset of your equities
The investment vehicles (which you have not mentioned) can be as important eg ISA, Pension, types of property, VCTs etc etc and dictate which investments you would be better holding within them
I would suggest consulting an FA, even if you don't use the exact products they suggest, you might get ideas and are free to search the market for cheaper alternatives
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Post by Deleted on Jan 6, 2018 17:14:41 GMT
You seem to want someone to say "yes, that's about what % I have in P2P" to make you feel more confident you have made the right decision. Asking on a P2P forum is highly bias as most will have a higher % in P2P or they wouldn't waste their time here (you would hope) Cash to me is for day to day bills and emergencies. What that level is, is very personal to someone's situation and their income to replace it. At 30% cash I at least hope you have maxed out all the high interest accounts? Your BTL is not really BTL, just a subset of P2P/Crowdfunding. It's not subject to the same issues, tax treatment and gains/losses as true BTL Your Employer shares are a subset of your equities The investment vehicles (which you have not mentioned) can be as important eg ISA, Pension, types of property, VCTs etc etc and dictate which investments you would be better holding within them I would suggest consulting an FA, even if you don't use the exact products they suggest, you might get ideas and are free to search the market for cheaper alternatives however it appears, I don't want anyone to say anything in particular, if I wanted my hand held I'd chose different partners. My portfolio is designed by me to meet my requirements, having said that I don't see any harm in taking a consensus. If I held 30% p2p and realised no one else held more than 5% it might cause me to reconsider my own opinions, investing is after all a continual work in progress, what suits today may not tomorrow or next year! Sorry to let you down but despite your hopes I also have limited high interest cash accounts, I can't be bothered with the direct debit requirements for limited amounts. My high cash holdings are partially as I may need some soon and as I only recently started building my investment portfolio from a modest pot. My BTL may not be pure BTL but as I'm not in the position to purchase another property I find property partner a valid and interesting avenue into this market, can I call it crowdfunding BTL ? I hold all S&S in ISAs other than my pension which my employer handles. Thanks for your take on things!
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Post by df on Jan 6, 2018 20:43:04 GMT
Approximately 30% in P2P and the rest in banks and building societies. Why? Because I wouldn't feel comfortable with dedicating more cash to P2P. I've looked into other types of investments, but didn't find them attractive. Building societies and banks pay lower interest, but I know that my money is safe there.
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