taffy
Posts: 148
Likes: 360
|
Post by taffy on Dec 27, 2019 11:21:08 GMT
I just don't understand how they are producing these figures. Zopa plus 2016 they have 9.6% return after fees and losses and only 2.1% defaults! My current NAR from Zopa plus 2016 is 2.29%  There should be lots of investors boasting about huge returns from 2016 but I don't see any. Come on show yourselves just to put my mind at ease. When you quote a NAR of 2.29% are you taking into account the fact it will cost you at least 1% of the funds withdrawn? If not, the return is more like 1.29%, less than many guaranteed bank returns. Zopa quote "returns" after fees and losses, perhaps they should deduct the withdrawal fee as well to make it more realistic.
|
|
ashtondav
Member of DD Central
Posts: 1,814 
Likes: 1,092
|
Post by ashtondav on Dec 27, 2019 15:05:54 GMT
But it was never advertised as instant access, so of course you incur a fee if you make an early withdrawal (sale). There are no fees for simply withdrawing your interest and capital repayments.
There must be some real heavy hitting Lucksters in Plus to achieve their average. My wife is achieving 2.6% on her Plus a/c.
As you say those lucky millions must be shy cos they don't post on here....
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Dec 27, 2019 15:30:58 GMT
My current NAR on plus is 4.2%.
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Dec 27, 2019 16:43:16 GMT
But it was never advertised as instant access, so of course you incur a fee if you make an early withdrawal (sale). There are no fees for simply withdrawing your interest and capital repayments.
There must be some real heavy hitting Lucksters in Plus to achieve their average. My wife is achieving 2.6% on her Plus a/c.
As you say those lucky millions must be shy cos they don't post on here....
My guess is that apart from people on these forums (other forums are available) most of whom are clued into things a lot more than most, the large bulk of Zopa and RS lenders are not in the slightest bit savvy to what can and probably will happen. A good few people here, and I include myself in them, are looking for angles to better the normal set and go lender. It's not so easy on Zopa as it used to be and it's getting increasingly harder on RS. I'm not sure I have succeeded that much, even the "limit to £10 loans trick" is starting to look like a flawed plan at the moment, but my plan was always to beat "Inflation Tax" and so far we are still on target to beat that even if we sold out. In light of the seemingly steady defaults eating away at our interest monthly on some products - only just being propped up by previous SG loans and early adopters additions for me - I am thinking of turning off relend and letting things return back to our accounts for a while, at least on Zopa that is.
|
|
Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
|
Post by Greenwood2 on Dec 28, 2019 9:03:52 GMT
I just don't understand how they are producing these figures. Zopa plus 2016 they have 9.6% return after fees and losses and only 2.1% defaults! My current NAR from Zopa plus 2016 is 2.29% There should be lots of investors boasting about huge returns from 2016 but I don't see any. Come on show yourselves just to put my mind at ease. When you quote a NAR of 2.29% are you taking into account the fact it will cost you at least 1% of the funds withdrawn? If not, the return is more like 1.29%, less than many guaranteed bank returns. Zopa quote "returns" after fees and losses, perhaps they should deduct the withdrawal fee as well to make it more realistic. It is a one off 1% fee not an annual charge, so the effect on NAR very much depends on how long you have been earning how much. There is also tax relief on losses (on non-IFISA product) in Zopa to be considered when comparing with RS etc. How do you get your NAR for just 2016?
|
|
aju
Member of DD Central
Posts: 3,500
Likes: 924
|
Post by aju on Dec 28, 2019 11:55:05 GMT
When you quote a NAR of 2.29% are you taking into account the fact it will cost you at least 1% of the funds withdrawn? If not, the return is more like 1.29%, less than many guaranteed bank returns. Zopa quote "returns" after fees and losses, perhaps they should deduct the withdrawal fee as well to make it more realistic. There is also tax relief on losses (on non-IFISA product) in Zopa to be considered when comparing with RS etc. How do you get your NAR for just 2016? On the effect of 1% on NAR, I hadn't actually thought of the fee in that way but I now realise you are right the fee should be spread across the whole deal. So feeding it into the final XIRR may give a realistic picture across the 10 years or more I have been lending on Zopa. Unless of course using XIRR in this scenario is not as valuable or worse shows an error. I must pretend I am selling it off and calc the figures and plug into my alltime XIRR and also the Yearly one woo just for interest at this stage. I'm guessing spreading it this way may make it more palatable as exit plan.
|
|
