ashtondav
Member of DD Central
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Post by ashtondav on May 5, 2021 13:38:00 GMT
Some of it is psychological. It’s 1999 and I’m 20 years old investing 5k a year for the next 22 years. Would I prefer an average 10%pa return with two or three Savage drawdown years of 30%+, or would I prefer a smooth, inflation busting 4% a year. Probably the former so I’d go to the stock market. The same year and I’m 65 years old I’d probably go for the latter option as the former would be bad for my heart, my marriage and my spend pattern. Probably go p2p.
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Post by ingenue on May 6, 2021 17:11:28 GMT
I’m now making 4% on Zopa with bs interest at about 0.5%pa. Seems fair. You've been luckier than I have. After 4 years, I've made 2.7% on core and 2.6% on plus, and those numbers aren't going to improve as I wind down. I'm not knocking Zopa per se, but just feel that, personally, the risk-reward ratio no longer justifies p2p.
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zlb
Member of DD Central
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Post by zlb on May 7, 2021 10:46:32 GMT
I took a hit when I didn't realise that £10 loan chunks are only possible with no greater than 1k deposit.
They announced they were going to finally incorporate more granular diversification (now promised for years). Does anyone know whether that has happened?
The main issue for me is not being able to accurately estimate defaults and any repayments from their debt sales - there's no way of knowing the level of default at the future point that I may want to withdraw cash (hence it being an investment, not savings). Meaning that I can't actually say for sure whether or not I will have made a loss with Zopa or not.
Surely they have enough experience now to offer estimates of this, or are they not allowed to do that? (Bondmason has given 'write-down' figures)
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aju
Member of DD Central
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Post by aju on May 7, 2021 11:41:30 GMT
I took a hit when I didn't realise that £10 loan chunks are only possible with no greater than 1k deposit. They announced they were going to finally incorporate more granular diversification (now promised for years). Does anyone know whether that has happened? The main issue for me is not being able to accurately estimate defaults and any repayments from their debt sales - there's no way of knowing the level of default at the future point that I may want to withdraw cash (hence it being an investment, not savings). Meaning that I can't actually say for sure whether or not I will have made a loss with Zopa or not. Surely they have enough experience now to offer estimates of this, or are they not allowed to do that? (Bondmason has given 'write-down' figures) Yes it was and still is an annoyance. A while back (Jun 2017 for us) when we were just starting out on the ISA's in Zopa and moving funds across it was a bit of a pain limiting one to £1000 blocks but we soon discovered that you could up that to £1999 as the trigger for £20 loans was £2000 lent. That helped a little but not sure the same triggers still apply (My guess is they do). Still cumbersome but its also advantageous to spread the loans over a period too I think. In my recent experience the biggest hit is selling in that the Market Rate Adjustment can be quite a hit if you want to sell out. In our case it was as much as 5%. The other issue is once you start selling or worse drawing down the defaults start to show their true colours in the deal as well. I recommend looking at 4thway's recent (covering the recent issues) review of Zopa they might be quite sobering perhaps and its clear in their view that the lack of relevant information does make it less of a good place to be. I personally started to worry about zopa when the the complete loanbook was axed last year i think it was - they kept saying it was available but then suddenly decided they'd decided they were not supplying it anymore. Over the years there has been quite a steady removal of data in varying forms - I kept track of it all in spreadsheets I could join together and watch the state of play. There is still a lot of data but sadly the loss of monthly data like detailed statements is the last straw although i'm still not sure they should supply this as defined in FCA requirements for P2P.
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Post by WestonKevTMP on May 7, 2021 12:52:59 GMT
My view is that if an investment is causing you anxiety, stress or generally keeping you up at night then it isn't for you. You're risk appetite just isn't for non-FSCS investments.
And I wouldn't come to an anonymous forum for support and reassurance. I appreciate there are some good eggs here that want to help, but in truth most are ignorant of the actual performance inside a platform.
Many platforms have gone bust, and there is a strong correlation with the annual most preferred platform on this forum! I warned about Lendy for years, but everyone loved them.
So my advice, put your money somewhere else. Or invest knowing and content that you could lose 100%. I know this is the standard warning, but it's true.
Kevin.
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