|
|
Post by letsgetricher on Mar 6, 2019 11:27:17 GMT
Hi newbie here, go easy  What is the selection process for a IFISA ? Have viewed the 'Compare IFISA Rates (March 2019) information, but because the interest rates are so wide, its proving difficult to select, Please advise Once a platform has been selected, how is the due diligence undertaken ? Also coming upto 2018/19 ISA period close, where can the last minute investment incentives / bonus be found ? (as i have not used our 18/19 ISA allowance as yet) Thanks |
|
ceejay
Posts: 975 
Likes: 1,149
|
Post by ceejay on Mar 6, 2019 11:43:37 GMT
Hello, and welcome.
First, I think you might possibly be asking the wrong question - I would not start by thinking about what ISAs I wanted, I would start by thinking about where I wanted to put my money. How much in Cash/P2P/S&S ?
If you know how much you want to put in P2P, then decide on the platforms.
Then, looking across the whole portfolio, where can your ISA allowance best be deployed? (Usually on the investments with the highest return)
So I think what you may really be asking is "What P2P platforms should I be using?" which is a tough question to answer. Headline return rates are very misleading - the higher rates mean higher risk and higher defaults.
What is your level of risk aversion?
How quickly might you want this money back? [Some P2P investments are a LOT more liquid than others]
Do you already have money in P2P? [Diversifying across multiple platforms is HIGHLY recommended, though of course you can only put fresh funds into one IFISA in any one tax year]
How hands-on do you want to be? Many of the platforms recommended here require a lot of attention (daily in some cases) to get the best out of them. That may not be a good use of your time, in which case you'll be wanting a hands-off option.
|
|
archie
Posts: 1,866
Likes: 1,861
|
Post by archie on Mar 6, 2019 12:05:46 GMT
Might be better to open a cash ISA this year, check there isn't a transfer out fee.
In the new tax year you could initiate several partial transfers to different ISA accounts to spread your risk.
|
|
tomp
Member of DD Central
Posts: 144
Likes: 75
|
Post by tomp on Mar 6, 2019 13:16:48 GMT
Might be better to open a cash ISA this year, check there isn't a transfer out fee. In the new tax year you could initiate several partial transfers to different ISA accounts to spread your risk. Any recommendations for good Cash ISA? I am just wondering how it would work. If you put 20k into Cash ISA this year and then transfer it out next year to 4 p2p platforms 5k each. Can you contribute new allowance to all 4 platforms or do you have to pick one?
|
|
archie
Posts: 1,866
Likes: 1,861
|
Post by archie on Mar 6, 2019 13:26:19 GMT
Might be better to open a cash ISA this year, check there isn't a transfer out fee. In the new tax year you could initiate several partial transfers to different ISA accounts to spread your risk. Any recommendations for good Cash ISA? I am just wondering how it would work. If you put 20k into Cash ISA this year and then transfer it out next year to 4 p2p platforms 5k each. Can you contribute new allowance to all 4 platforms or do you have to pick one? In any one year you can only contribute new money to one ISA of each type (IFISA, cash or Stocks & Shares *). You can put all the allowance into one type or split it between two or more types. You can open several IFISA accounts in the same year but only one can receive new money. In your example you can transfer out into four different platforms but you can't use the new allowance across all four. Not sure on the best cash ISA accounts. * Note there are Lifetime ISAs and Help to buy ISAs too.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Mar 6, 2019 13:30:04 GMT
Any recommendations for good Cash ISA? I am just wondering how it would work. If you put 20k into Cash ISA this year and then transfer it out next year to 4 p2p platforms 5k each. Can you contribute new allowance to all 4 platforms or do you have to pick one? In any one year you can only contribute new money to one ISA of each type (IFISA, cash or Stocks & Shares *). You can put all the allowance into one type or split it between two or more types. You can open several IFISA accounts in the same year but only one can receive new money. In your example you can transfer out into four different platforms but you can't use the new allowance across all four. Not sure on the best cash ISA accounts. * Note there are Lifetime ISAs and Help to buy ISAs too. NB HTB ISA are included within cash ISA or Lifetime ISA, it is not a separate type.
|
|
benaj
Member of DD Central
N/A
Posts: 5,616
Likes: 1,740
|
Post by benaj on Mar 12, 2019 18:03:56 GMT
|
|
IFISAcava
Member of DD Central
Posts: 3,692
Likes: 3,018
|
Post by IFISAcava on Mar 12, 2019 19:03:37 GMT
What is the selection process for a IFISA ?
My selction process is simple: Bargepole.
If you are risk averse, you should be going for a Cash ISA with a boring financial institution like a bank.
If you want a little risk, you should be going Stocks & Shares and choosing stuff to fill it that suits your risk profile.
IFISAs are just bargepole territory. For a start (and before we start talking about the general wild west of P2P) you won't be able to take advantage of the losses that you will inevitably incurr in P2P.
The losses to offset against tax are irrelevant UNLESS you make an overall loss on all your P2P combined. Except in that scenario (in which case you have been extraordinarily unlucky) post tax P2P earnings are always higher within an IFISA than outside an IFISA irrespective of any offsetting.
|
|
|
|
Post by letsgetricher on Mar 13, 2019 11:42:23 GMT
This is a little more positive, Thankyou
"Except in that scenario (in which case you have been extraordinarily unlucky) post tax P2P earnings are always higher within an IFISA than outside an IFISA irrespective of any offsetting."
|
|
bod
Member of DD Central
Posts: 83 
Likes: 28
|
Post by bod on Mar 13, 2019 14:50:11 GMT
Might be better to open a cash ISA this year, check there isn't a transfer out fee. In the new tax year you could initiate several partial transfers to different ISA accounts to spread your risk. Any recommendations for good Cash ISA? I am just wondering how it would work. If you put 20k into Cash ISA this year and then transfer it out next year to 4 p2p platforms 5k each. Can you contribute new allowance to all 4 platforms or do you have to pick one? Coventry BS currently have a 1.5% EA Cash ISA (includes 0.35% bonus until July 2020)
|
|
|
|
Post by df on Mar 13, 2019 15:09:42 GMT
Any recommendations for good Cash ISA? I am just wondering how it would work. If you put 20k into Cash ISA this year and then transfer it out next year to 4 p2p platforms 5k each. Can you contribute new allowance to all 4 platforms or do you have to pick one? Coventry BS currently have a 1.5% EA Cash ISA (includes 0.35% bonus until July 2020) Santander is also offering 1.5% ISA, but only to 1|2|3 and Santander Select customers. Paragon is offering 1.45%. I'm wondering if we'll see an increase across the board sometime soon?
|
|
mjc
Member of DD Central
Posts: 342
Likes: 425
|
Post by mjc on Mar 13, 2019 16:50:24 GMT
If you don’t have any existing ISA, then you are brave(?) to think of putting it all into one IFISA. If iyou already have previous years ISA as cash, add your £20k to that, and move previous year’s cash to 3 or 4 or more platforms.
I would suggest AC, Proplend, LW, Loanpad, PropertyCrowd, Welendus, Octopus, RS might be suitable ones to look at, not FS, Lendy. Read the forum threads, for a flavour of satisfaction, also 4th Way, and TP with a bucket of cynicism.
|
|
pom
Member of DD Central
Posts: 1,922
Likes: 1,244
|
Post by pom on Mar 14, 2019 13:48:57 GMT
Hi newbie here, go easy What is the selection process for a IFISA ? Have viewed the 'Compare IFISA Rates (March 2019) information, but because the interest rates are so wide, its proving difficult to select, Please advise Once a platform has been selected, how is the due diligence undertaken ? Also coming upto 2018/19 ISA period close, where can the last minute investment incentives / bonus be found ? (as i have not used our 18/19 ISA allowance as yet) Thanks Assuming you're completely new to P2P and not just IFISAs then for a start I'd only invest ISA cash in a platform I'd already been using for a while - no matter how much research you may think you've done there will be quirks you'll only really notice once you've had an account for a while - and moving your ISA cash elsewhere is unlikely to be cheap/easy in a hurry.... early repayment fees/lost interest (black box accounts), transfer out fees (not everywhere fortunately)....and that's even assuming your loans are fully liquid and easily sellable (depending on the platform you might need/be able to sell at a loss)...and potentially a (very) long wait if a loans gone bad. If you've not got any spare non ISA cash to try platforms regular accounts first then please think seriously if P2P is really for you, and please do not put a whole 20k in a single platform - put it in a cash ISA until next month then either transfer to other ISAs or perhaps find a flexible cash ISA so you can then withdraw small amounts in the new tax year to experiment with before overcommitting. As for whether you should target platforms with higher/lower risk, there are arguments for both (for me return of capital is more important to me than return on capital for my ISA cash). Actually I have a mix but the higher rate platforms are much harder work as they don't tend to have much diversity available, so my future IFISAs are far more likely to be black box. We all have different risk appetites, different reasons for investing, different portfolio types and sizes so really ultimately you're just going to have to try a few and see what suits you. Just please try to be patient and take your time...tho I suspect all of us probably have at least one over-large investment made early in our P2P careers that we would be far more cautious about if we saw it now 😂
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Mar 14, 2019 17:42:42 GMT
Hi newbie here, go easy What is the selection process for a IFISA ? Have viewed the 'Compare IFISA Rates (March 2019) information, but because the interest rates are so wide, its proving difficult to select, Please advise Once a platform has been selected, how is the due diligence undertaken ? Also coming upto 2018/19 ISA period close, where can the last minute investment incentives / bonus be found ? (as i have not used our 18/19 ISA allowance as yet) Thanks Assuming you're completely new to P2P and not just IFISAs then for a start I'd only invest ISA cash in a platform I'd already been using for a while - no matter how much research you may think you've done there will be quirks you'll only really notice once you've had an account for a while - and moving your ISA cash elsewhere is unlikely to be cheap/easy in a hurry.... early repayment fees/lost interest (black box accounts), transfer out fees (not everywhere fortunately)....and that's even assuming your loans are fully liquid and easily sellable (depending on the platform you might need/be able to sell at a loss)...and potentially a (very) long wait if a loans gone bad. If you've not got any spare non ISA cash to try platforms regular accounts first then please think seriously if P2P is really for you, and please do not put a whole 20k in a single platform - put it in a cash ISA until next month then either transfer to other ISAs or perhaps find a flexible cash ISA so you can then withdraw small amounts in the new tax year to experiment with before overcommitting. As for whether you should target platforms with higher/lower risk, there are arguments for both (for me return of capital is more important to me than return on capital for my ISA cash). Actually I have a mix but the higher rate platforms are much harder work as they don't tend to have much diversity available, so my future IFISAs are far more likely to be black box. We all have different risk appetites, different reasons for investing, different portfolio types and sizes so really ultimately you're just going to have to try a few and see what suits you. Just please try to be patient and take your time...tho I suspect all of us probably have at least one over-large investment made early in our P2P careers that we would be far more cautious about if we saw it now 😂 Very wise words here from pom, I've personally been in Zopa for some 10+ years and they keep surprising me in the way they change things so often, never mind the changing of current investment climates etc. I am new in RS, last 4 months and still learning how things work under the hood as well as being unsure how things work in the std non ISA account. The ISA account in RS is tempting and we are over stretched in Zopa ISA's having moved a couple of 1.4% ones from std bank ISA accounts into the ISA for the better rates early in 2018. It's working but we are getting less comfortable with the increasing default levels on Zopa coupled with the lack of protection cover - knowing that even that cover can be tenuous on most platforms. Our main investment principle is to make sure that our sapre money is not languishing in accounts with abysmal returns but rather where if possible we can at least maintain rte that if nothing else at least equal inflation and where possible better it by a margin that we consider to be good but with as limited risk as is possible. We have quite large sums in current accounts and saving with marcus for quite large sums, some shares and some immediate cash before we commit to things like P2p.
|
|
|
|
Post by letsgetricher on Mar 22, 2019 11:07:56 GMT
aju I thankyou
"Our main investment principle is to make sure that our sapre money is not languishing in accounts with abysmal returns but rather where if possible we can at least maintain rte that if nothing else at least equal inflation and where possible better it by a margin that we consider to be good but with as limited risk as is possible. We have quite large sums in current accounts and saving with marcus for quite large sums, some shares and some immediate cash before we commit to things like P2p. "
Yes good strategy
|
|
