hazellend
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Post by hazellend on Jan 6, 2018 20:52:59 GMT
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. This is a losing strategy. IMO equities are a must have asset class to own. They are volatile but will most likely go up significantly in the long term. Clearly you are very risk averse but even so you should have at least 25% in equities. Your cash is being eroded by inflation so cash is not safe . Obviously it depends on your circumstance but please read Bogleheads or Lars Kroijer or something! I got into P2P to diversify from my equity heavy portfolio but even with a default free 2 years my equities have significantly outperformed
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Post by df on Jan 6, 2018 22:08:45 GMT
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. This is a losing strategy. IMO equities are a must have asset class to own. They are volatile but will most likely go up significantly in the long term. Clearly you are very risk averse but even so you should have at least 25% in equities. Your cash is being eroded by inflation so cash is not safe . Obviously it depends on your circumstance but please read Bogleheads or Lars Kroijer or something! I got into P2P to diversify from my equity heavy portfolio but even with a default free 2 years my equities have significantly outperformed I've looked at equity investments - didn't think it is for me. I prioritise being in control of my finances and very long term investments don't suit my needs. Inflation doesn't affect me very much as I'm not a big consumer. Somehow, whilst inflation is going up my bills are going down, it hasn't been consistent, but on average the interest I get from banks/BS pay my bills. I got into P2P because I've ran out of bank/BS accounts as they have restrictions on how much I can save. Thank you for your thoughts, I might look at S&S again and see if it suits me.
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macq
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Post by macq on Jan 7, 2018 0:32:16 GMT
surprised with the paltry amounts on cash deposits that more people don't take a punt on premium bonds
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Post by wildlife2 on Jan 7, 2018 1:06:04 GMT
I cashed a lot of my premium bonds in over the last 3 years to put into p2p instead,
but starting to buy more again now.
The highest prize I have ever won was £1,000 which was way back in 1999.
It is better now it can all be done on-line, very quick and easy to take money out when needed.
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Post by df on Jan 7, 2018 20:10:24 GMT
surprised with the paltry amounts on cash deposits that more people don't take a punt on premium bonds I've looked at it some time ago. It is like buying lottery tickets, but not loosing any money. Brilliant idea. I didn't go for it. I'd rather have guaranteed interest (even if it is small) than a chance to win a cash prize.
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pom
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Post by pom on Jan 7, 2018 20:54:43 GMT
surprised with the paltry amounts on cash deposits that more people don't take a punt on premium bonds I've looked at it some time ago. It is like buying lottery tickets, but not loosing any money. Brilliant idea. I didn't go for it. I'd rather have guaranteed interest (even if it is small) than a chance to win a cash prize. Well your chances really depend on how much you're happy to hold as "cash". Not worth holding a few but if you have a lot you should get close to the rate used to calculate the prize fund and unlike bank accounts it's tax free, so you'd have to do really badly to end up worse off than a bank account.
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hazellend
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Post by hazellend on Jan 7, 2018 20:57:10 GMT
I've looked at it some time ago. It is like buying lottery tickets, but not loosing any money. Brilliant idea. I didn't go for it. I'd rather have guaranteed interest (even if it is small) than a chance to win a cash prize. Well your chances really depend on how much you're happy to hold as "cash". Not worth holding a few but if you have a lot you should get close to the rate used to calculate the prize fund and unlike bank accounts it's tax free, so you'd have to do really badly to end up worse off than a bank account. Unless you stick the full 50k in forget it. Makes tax a lot simpler. I used to have them and had a good run including 500 prize. Might buy them again at some point
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macq
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Post by macq on Jan 7, 2018 22:36:04 GMT
if you were able to put in the max or a large sum i think you have a good chance(or should say luck) of making 1% on average which compares with a low interest account and if you only have a small sum have you really lost that much in interest to miss? and in both cases you could make more
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Post by marx on Jan 8, 2018 2:34:59 GMT
a very small dabble in Crypto ( circa 1-2%), although may have missed the boat! No you haven't, as long as you come in structured, manage risk appropriately, are prepared for a learning curve. There's a transfer of a lot of new (might we say unsophisticated) money, and of (highly speculative, if not downright lucky) early adopter money underway. Can recommend Chris Burniske's the Innovative Investor for a good overview of the space, including its speculative tendencies. I would also recommend finding a private signalling group, as there are so many ICOs right now that it's tricky to know which to pick. I started at 1%, am now at 22% of my NW a month later and considering unwinding some of my p2p to free up funds. Need a stomach for harrowing volatility, but the bull trend is so strong across all markets that I would certainly recommend investigating further.
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pom
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Post by pom on Jan 8, 2018 9:56:19 GMT
if you were able to put in the max or a large sum i think you have a good chance(or should say luck) of making 1% on average which compares with a low interest account and if you only have a small sum have you really lost that much in interest to miss? and in both cases you could make more Just checked my figures and I've averaged 1.76% over just over 2yrs. Now that was helped greatly by recent wins of £500 (amazingly I also won 5x£25 that month) & £100, but even if I just count the regular £25s it would still work out at 1.24% (well ok it would be less than that if I'd accounted for the few weeks drag at the start but whatever, can't be bothered to go check when I actually bought them - and the longer I keep them the less significant that will be). Since I pay 40% tax I'd have to get 2-3% elsewhere to match that. Yes I do have the full 50k, so it's a lot to tie up, but as I still have "too much" cash overall it's a no brainer to keep them at least until I've thought of something else to do with the rest, and they're much less faff than my current accounts.
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macq
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Post by macq on Jan 8, 2018 10:55:01 GMT
if you were able to put in the max or a large sum i think you have a good chance(or should say luck) of making 1% on average which compares with a low interest account and if you only have a small sum have you really lost that much in interest to miss? and in both cases you could make more Just checked my figures and I've averaged 1.76% over just over 2yrs. Now that was helped greatly by recent wins of £500 (amazingly I also won 5x£25 that month) & £100, but even if I just count the regular £25s it would still work out at 1.24% (well ok it would be less than that if I'd accounted for the few weeks drag at the start but whatever, can't be bothered to go check when I actually bought them - and the longer I keep them the less significant that will be). Since I pay 40% tax I'd have to get 2-3% elsewhere to match that. Yes I do have the full 50k, so it's a lot to tie up, but as I still have "too much" cash overall it's a no brainer to keep them at least until I've thought of something else to do with the rest, and they're much less faff than my current accounts. well done - I have given a like to your post in the hope your luck rubs off  as i seem to only get the £25's and £100 but have averaged about 1.25% per over the last 2 years since i topped up and not near the max so not really lost out to a instant access account.When you check the results it does seem to favour the higher holdings for the bigger prizes so i may need to put more in,it also seems a lot of people on the IOW and Devon/South Coast win which someone said was due to people retiring down that way with large cash pots - so i know where i'm moving to
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macq
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Post by macq on Jan 8, 2018 11:13:42 GMT
but there is also the fact of you don't lose your stake unlike the lottery (and scratch cards that litter the floor in my newsagents)probably worth a small %
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Post by df on Jan 8, 2018 11:39:09 GMT
Just checked my figures and I've averaged 1.76% over just over 2yrs. Now that was helped greatly by recent wins of £500 (amazingly I also won 5x£25 that month) & £100, but even if I just count the regular £25s it would still work out at 1.24% (well ok it would be less than that if I'd accounted for the few weeks drag at the start but whatever, can't be bothered to go check when I actually bought them - and the longer I keep them the less significant that will be). Since I pay 40% tax I'd have to get 2-3% elsewhere to match that. Yes I do have the full 50k, so it's a lot to tie up, but as I still have "too much" cash overall it's a no brainer to keep them at least until I've thought of something else to do with the rest, and they're much less faff than my current accounts. well done - I have given a like to your post in the hope your luck rubs off as i seem to only get the £25's and £100 but have averaged about 1.25% per over the last 2 years since i topped up and not near the max so not really lost out to a instant access account.When you check the results it does seem to favour the higher holdings for the bigger prizes so i may need to put more in,it also seems a lot of people on the IOW and Devon/South Coast win which someone said was due to people retiring down that way with large cash pots - so i know where i'm moving to Thank you for sharing this info. It is interesting to see the examples of return people getting from premium bonds. It might be useful for me in future, should I decide to give it a go. At the moment I'm getting 1.4% from Coventry 'telephone saver' (works like an ordinary instant access) and 1.44% from Birmingham Midshire, which are feeding an endless amount of regular savers at 2.5-5%. I didn't attempt calculating my average return from the whole banks/building societies package, but it is probably around 2-2.2%.
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macq
Member of DD Central
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Post by macq on Jan 8, 2018 12:16:55 GMT
well done - I have given a like to your post in the hope your luck rubs off as i seem to only get the £25's and £100 but have averaged about 1.25% per over the last 2 years since i topped up and not near the max so not really lost out to a instant access account.When you check the results it does seem to favour the higher holdings for the bigger prizes so i may need to put more in,it also seems a lot of people on the IOW and Devon/South Coast win which someone said was due to people retiring down that way with large cash pots - so i know where i'm moving to Thank you for sharing this info. It is interesting to see the examples of return people getting from premium bonds. It might be useful for me in future, should I decide to give it a go. At the moment I'm getting 1.4% from Coventry 'telephone saver' (works like an ordinary instant access) and 1.44% from Birmingham Midshire, which are feeding an endless amount of regular savers at 2.5-5%. I didn't attempt calculating my average return from the whole banks/building societies package, but it is probably around 2-2.2%. pretty good return for cash - i would stick with that if you don't want the gamble/bit of fun
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pom
Member of DD Central
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Post by pom on Jan 8, 2018 12:23:04 GMT
Just checked my figures and I've averaged 1.76% over just over 2yrs. Now that was helped greatly by recent wins of £500 (amazingly I also won 5x£25 that month) & £100, but even if I just count the regular £25s it would still work out at 1.24% (well ok it would be less than that if I'd accounted for the few weeks drag at the start but whatever, can't be bothered to go check when I actually bought them - and the longer I keep them the less significant that will be). Since I pay 40% tax I'd have to get 2-3% elsewhere to match that. Yes I do have the full 50k, so it's a lot to tie up, but as I still have "too much" cash overall it's a no brainer to keep them at least until I've thought of something else to do with the rest, and they're much less faff than my current accounts. well done - I have given a like to your post in the hope your luck rubs off as i seem to only get the £25's and £100 but have averaged about 1.25% per over the last 2 years since i topped up and not near the max so not really lost out to a instant access account.When you check the results it does seem to favour the higher holdings for the bigger prizes so i may need to put more in,it also seems a lot of people on the IOW and Devon/South Coast win which someone said was due to people retiring down that way with large cash pots - so i know where i'm moving to I might live in the SW...but am not retired 
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as i seem to only get the £25's and £100 but have averaged about 1.25% per over the last 2 years since i topped up and not near the max so not really lost out to a instant access account.When you check the results it does seem to favour the higher holdings for the bigger prizes so i may need to put more in,it also seems a lot of people on the IOW and Devon/South Coast win which someone said was due to people retiring down that way with large cash pots - so i know where i'm moving to