ceejay
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Post by ceejay on Nov 8, 2018 12:50:31 GMT
FC is really excellent for quick sale and access, but for the reasons ceejay gives I continue to use it that way because I am already there, and bound to them forever. If starting now I would not go to FC. I was only in FC until they changed their model at which point I moved to FS...Now I am looking for options, ideally with a good SM and liquidity. First, I agree with SteveT 's point about the risk of using P2P for any funds which you have to have access to quickly. If it's really important, an FSCS account would be more appropriate.
But if, as I think you're saying, its a temporary park for funds which would otherwise be invested then, yes, I think the AC QAA is hard to beat.
Don't be too quick to dismiss the 30DAA as part of a strategy: there is no penalty for putting in a "withdraw" order and then cancelling it, so you could for example have a rolling set of (say) weekly withdrawals that you cancel before they happen.
Otherwise, from my limited experience, the RS Rolling account would meet your needs. Having said that, I'm not a big fan of it - the rates are not generally good and are prone to random variations. But if you do get some in at a decent rate, it will mostly stay there for a while with "instant" withdrawal.
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number5
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Post by number5 on Nov 8, 2018 12:59:19 GMT
I was only in FC until they changed their model at which point I moved to FS...Now I am looking for options, ideally with a good SM and liquidity. First, I agree with SteveT 's point about the risk of using P2P for any funds which you have to have access to quickly. If it's really important, an FSCS account would be more appropriate.
But if, as I think you're saying, its a temporary park for funds which would otherwise be invested then, yes, I think the AC QAA is hard to beat.
Don't be too quick to dismiss the 30DAA as part of a strategy: there is no penalty for putting in a "withdraw" order and then cancelling it, so you could for example have a rolling set of (say) weekly withdrawals that you cancel before they happen.
Otherwise, from my limited experience, the RS Rolling account would meet your needs. Having said that, I'm not a big fan of it - the rates are not generally good and are prone to random variations. But if you do get some in at a decent rate, it will mostly stay there for a while with "instant" withdrawal.
I completely agree with SteveT's post, as I experience it in FS where a year ago the Sm would fly at high premiums and now at max discount parts are not selling. What sort of rates do you get at an FSCS account? I think I am warming more to one of AC's AA acounts rather than more of a gamble in RS That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day?
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blender
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Post by blender on Nov 8, 2018 13:09:00 GMT
I was not making any comment about Assetz liquidity because I have no experience. On FC I have six years experience, and particularly so recently, and would say it is probably the best bet, or near the best, for liquidity in p2p (for 90% of your funds). But Steve is right, in that your exit on FC depends on someone buying your loan parts, and they cannot create cash to pay you if there are no buyers. However, the daily recycling of repayments acts as a giant liquidity flywheel which is very difficult to stop quickly.
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number5
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Post by number5 on Nov 8, 2018 13:14:47 GMT
I was not making any comment about Assetz liquidity because I have no experience. On FC I have six years experience, and particularly so recently, and would say it is probably the best bet, or near the best, for liquidity in p2p (for 90% of your funds). But Steve is right, in that your exit on FC depends on someone buying your loan parts, and they cannot create cash to pay you if there are no buyers. However, the daily recycling of repayments acts as a giant liquidity flywheel which is very difficult to stop quickly. Cheers blender! What sort of % return have you been getting over the last year since FC changed their model?
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Post by davee39 on Nov 8, 2018 13:28:09 GMT
As a lender looking to enhance retirement income I see the whole of the P2P sector flashing amber.
With new loans being made at 6% or less I am not confident Assetz will be able to maintain the liquidity buffer of the Quick Access accounts. Further, there are many long term defaults which might ultimately weaken the buffer. I feel over invested, having been encouraged by the various bonus offers, and will be pulling finds out in the new year.
Currently I favour Ford Money - FSCS - 2% for a 1 year bond & a very smooth web experience
Stock market investment for Income (These are examples. NOT a recommendation)
eg. Merchants Trust - an Investment Trust with a yield > 5%
Fidelity Enhanced Income - a Unit trust yielding 6.9% by doing clever option things with FTSE income companies
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Post by hammertime on Nov 8, 2018 15:17:52 GMT
I would not bother with F/C if i were you i was with them for a number of years and they were fine .Then they changed the way they wanted you to invest and it was awful .So i got out and i'm much happier with A/C. Why not try a mixture of QAA 30DAA and maybe the MLA i'm getting 11% in that and it does not take long to sell .Good luck.
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cb25
Posts: 3,528
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Post by cb25 on Nov 8, 2018 15:26:54 GMT
First, I agree with SteveT 's point about the risk of using P2P for any funds which you have to have access to quickly. If it's really important, an FSCS account would be more appropriate.
But if, as I think you're saying, its a temporary park for funds which would otherwise be invested then, yes, I think the AC QAA is hard to beat.
Don't be too quick to dismiss the 30DAA as part of a strategy: there is no penalty for putting in a "withdraw" order and then cancelling it, so you could for example have a rolling set of (say) weekly withdrawals that you cancel before they happen.
Otherwise, from my limited experience, the RS Rolling account would meet your needs. Having said that, I'm not a big fan of it - the rates are not generally good and are prone to random variations. But if you do get some in at a decent rate, it will mostly stay there for a while with "instant" withdrawal.
That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day? I run my 30DAA on a 'rolling return' basis. Each day, I put in a withdraw for 1/30 of my 30DAA total. When the money gets returned, if I don't need it, I immediately re-invest it in the 30DAA and again put in a withdraw for 1/30 of the total.
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blender
Member of DD Central
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Post by blender on Nov 8, 2018 15:52:11 GMT
I was not making any comment about Assetz liquidity because I have no experience. On FC I have six years experience, and particularly so recently, and would say it is probably the best bet, or near the best, for liquidity in p2p (for 90% of your funds). But Steve is right, in that your exit on FC depends on someone buying your loan parts, and they cannot create cash to pay you if there are no buyers. However, the daily recycling of repayments acts as a giant liquidity flywheel which is very difficult to stop quickly. Cheers blender! What sort of % return have you been getting over the last year since FC changed their model? I only started with the new model this year and so it is hard to say. But FC expected returns are based on current rates and losses. I think the returns will reduce because their shareholders will expect to see the loan book grow and costs held down. I keep the money I may need very quickly in FC expecting rates to fall and losses to increase, and the back-up cash in the GBBA which I think will be more stable. Many people make decisions partly based on their comfort with a platform, rather than hard numbers, and that includes me.
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number5
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Post by number5 on Nov 8, 2018 15:55:03 GMT
I would not bother with F/C if i were you i was with them for a number of years and they were fine .Then they changed the way they wanted you to invest and it was awful .So i got out and i'm much happier with A/C. Why not try a mixture of QAA 30DAA and maybe the MLA i'm getting 11% in that and it does not take long to sell .Good luck. Would you mind explaining to me how you use the MLA to get 11%, to me it looks quite difficult?
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number5
Member of DD Central
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Likes: 98
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Post by number5 on Nov 8, 2018 15:56:00 GMT
That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day? I run my 30DAA on a 'rolling return' basis. Each day, I put in a withdraw for 1/30 of my 30DAA total. When the money gets returned, if I don't need it, I immediately re-invest it in the 30DAA and again put in a withdraw for 1/30 of the total. That is exactly what I was thinking of doing, but then also you have the issue that it takes 2 working days to have these funds into your bank account.
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Post by df on Nov 8, 2018 15:58:56 GMT
First, I agree with SteveT 's point about the risk of using P2P for any funds which you have to have access to quickly. If it's really important, an FSCS account would be more appropriate.
But if, as I think you're saying, its a temporary park for funds which would otherwise be invested then, yes, I think the AC QAA is hard to beat.
Don't be too quick to dismiss the 30DAA as part of a strategy: there is no penalty for putting in a "withdraw" order and then cancelling it, so you could for example have a rolling set of (say) weekly withdrawals that you cancel before they happen.
Otherwise, from my limited experience, the RS Rolling account would meet your needs. Having said that, I'm not a big fan of it - the rates are not generally good and are prone to random variations. But if you do get some in at a decent rate, it will mostly stay there for a while with "instant" withdrawal.
I completely agree with SteveT's post, as I experience it in FS where a year ago the Sm would fly at high premiums and now at max discount parts are not selling. What sort of rates do you get at an FSCS account? I think I am warming more to one of AC's AA acounts rather than more of a gamble in RS That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day?I've been doing it for over a year with 30-Day. Put withdrawal requests daily. If there are new loans to invest I use this money, if not I put it back to 30-Day. Any sales or repayments go back to 30-Day and I make sure that I always have a little amount in QAA in case there are few upcoming loans. It is the same as using QAA for waiting money, but with slightly better return.
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number5
Member of DD Central
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Post by number5 on Nov 8, 2018 16:02:14 GMT
I completely agree with SteveT's post, as I experience it in FS where a year ago the Sm would fly at high premiums and now at max discount parts are not selling. What sort of rates do you get at an FSCS account? I think I am warming more to one of AC's AA acounts rather than more of a gamble in RS That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day?I've been doing it for over a year with 30-Day. Put withdrawal requests daily. If there are new loans to invest I use this money, if not I put it back to 30-Day. Any sales or repayments go back to 30-Day and I make sure that I always have a little amount in QAA in case there are few upcoming loans. It is the same as using QAA for waiting money, but with slightly better return. By new loans you want to invest in, I guess you mean in AC? I have FS as my main investment platform currently. How is the % return on AC and what is the liquidity on the SM? Can you sell at discount/premium?
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IFISAcava
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Post by IFISAcava on Nov 8, 2018 16:15:59 GMT
I completely agree with SteveT's post, as I experience it in FS where a year ago the Sm would fly at high premiums and now at max discount parts are not selling. What sort of rates do you get at an FSCS account? I think I am warming more to one of AC's AA acounts rather than more of a gamble in RS That is a very good insight into the 30DAA, I was not aware that you could put a request in and cancel it before it happens. I assume you can do this daily as well...allowing you to pretty much have access to said amount of funds every day?I've been doing it for over a year with 30-Day. Put withdrawal requests daily. If there are new loans to invest I use this money, if not I put it back to 30-Day. Any sales or repayments go back to 30-Day and I make sure that I always have a little amount in QAA in case there are few upcoming loans. It is the same as using QAA for waiting money, but with slightly better return.Not quite the same - there's a higher risk if the market turns that you won't be able to get your money out. Hence higher return. Also, using daily withdrawal requests of 1/30th, whenever the market does turn, you will have 29/30ths of your money stuck (for a period of between 1-30 days). If you roll it all every 30 days you'll have all of it stuck for a random number of days between 1 and 30, so a significant proportion of your money (around half on average, but could be more or less than that) will likely be more quickly accessible with the latter strategy. Not clear to me that either one is necessarily a preferable strategy, although it is clear which is more time consuming! (Could of course do also a hybrid rolling 1/4 every week) Agree that it does mean 1/30th of your funds are available for MLIA, but tbh if I am actively investing in MLIA then I prefer the QAA as gives more flexibility and can leave funds actively in MLIA queues whilst earning QAA interest on the sweep.
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Post by df on Nov 8, 2018 16:26:38 GMT
I've been doing it for over a year with 30-Day. Put withdrawal requests daily. If there are new loans to invest I use this money, if not I put it back to 30-Day. Any sales or repayments go back to 30-Day and I make sure that I always have a little amount in QAA in case there are few upcoming loans. It is the same as using QAA for waiting money, but with slightly better return. By new loans you want to invest in, I guess you mean in AC? I have FS as my main investment platform currently. How is the % return on AC and what is the liquidity on the SM? Can you sell at discount/premium? Yes, I keep AC money in AC, It was very long time ago when I made a withdrawal. At some point FS was my second platform, but recently I've reduced my FS investment. Far too many defaults and not many new loans. % return on AC depends on what accounts you are using. I would recommend to stay away from GBBA and PSA - I get better returns from 30-Day than GBAA/GEA due to defaults and poor diversification. 65% of my AC money is in MLA, 20% in GEA/GBBA. Overall I'm getting somewhere around 7% return. SM is good. So far I managed to sell everything I put for sale at par. You can sell at discount if you want it quick, but there is no premium.
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cb25
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Post by cb25 on Nov 8, 2018 16:39:54 GMT
I run my 30DAA on a 'rolling return' basis. Each day, I put in a withdraw for 1/30 of my 30DAA total. When the money gets returned, if I don't need it, I immediately re-invest it in the 30DAA and again put in a withdraw for 1/30 of the total. That is exactly what I was thinking of doing, but then also you have the issue that it takes 2 working days to have these funds into your bank account. I rarely withdraw AC money to the bank
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