webwiz
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Post by webwiz on Nov 30, 2015 19:36:15 GMT
And if the total of that column is greater than your largest loan amount you are well diversified and can already take the hit of a total loss and still be ahead of a FSCS account. Even if it is only greater than half of your typical loan amount you will probably survive a bad loan. Thanks - An interesting way of looking at it. I'm a relatively new investor to SS and my ratio is about 1/4. I'm diversified over about 24 loans which I believe is a good thing but my interest total is relatively low simply because I've only been investing over a few months. LW IMO you are doing well to have achieved this level of diversification so quickly. At 12%pa the interest accrues so quickly that barring something unpleasant in the near future you will soon be in a nice place where you can contemplate losses with some impunity.
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Post by brokenbiscuits on Nov 30, 2015 21:11:08 GMT
As a new invester here, my main concern is Diversity.
My largest loan is about a quarter of my holding. I'd like it to be more like about 7% as a fairly achievable short term goal.
That could be achieved with 15 or so loans.
The secondary market is too efficient at this time. Sold in seconds and so not much to do but wait and buy into whatever looks decent of the pipeline loans. However, say I want £100 of each, it seems I have to put in £500 or so to get what I want and then sell the excess on the secondary market to stop me getting just a tenner or so!
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SteveT
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Post by SteveT on Nov 30, 2015 21:21:25 GMT
As a new invester here, my main concern is Diversity. My largest loan is about a quarter of my holding. I'd like it to be more like about 7% as a fairly achievable short term goal. That could be achieved with 15 or so loans. The secondary market is too efficient at this time. Sold in seconds and so not much to do but wait and buy into whatever looks decent of the pipeline loans. However, say I want £100 of each, it seems I have to put in £500 or so to get what I want and then sell the excess on the secondary market to stop me getting just a tenner or so! Probably true, but that's still a dramatic improvement on where we were up until September. Before pre-funding it all came down to who was near their PC when the text message arrived, whether you managed to log in as hundreds of others tried to do the same and whether there was anything left by the time you did. Pre-funding is a walk in the park compared to that!
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mikes1531
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Post by mikes1531 on Nov 30, 2015 23:02:37 GMT
However, say I want £100 of each, it seems I have to put in £500 or so to get what I want and then sell the excess on the secondary market to stop me getting just a tenner or so! @ brokenbiscuits: Be aware that sooner or later SS will release a loan that isn't oversubscribed. You'll be allocated £500 of that loan and there still will be parts available so you could have difficulty selling your £400 excess instantly on the SM. That's not a disaster as long as you're aware of the possibility and have a plan of what you'd do about it if it should come to pass. Considering the number of loans in the pipeline now, and the size of some of them, I suspect it will happen sooner rather than later.
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Greenwood2
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Post by Greenwood2 on Dec 1, 2015 8:00:36 GMT
How do you take money out now?
If I go to UK withdrawal I get re-directed to 'Please complete a deposit from a UK bank', which then wants me to sign up to 'TransferWise', which I know nothing about and don't want to sign up to. If I continue with that what information am I going to have to give?
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webwiz
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Post by webwiz on Dec 1, 2015 8:26:34 GMT
How do you take money out now? If I go to UK withdrawal I get re-directed to 'Please complete a deposit from a UK bank', which then wants me to sign up to 'TransferWise', which I know nothing about and don't want to sign up to. If I continue with that what information am I going to have to give? It's anti-money laundering and fraud protection stuff that you just have to put up with IMO. There is no real alternative if you want to get your cash back.
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Post by brokenbiscuits on Dec 1, 2015 8:33:57 GMT
However, say I want £100 of each, it seems I have to put in £500 or so to get what I want and then sell the excess on the secondary market to stop me getting just a tenner or so! @ brokenbiscuits: Be aware that sooner or later SS will release a loan that isn't oversubscribed. You'll be allocated £500 of that loan and there still will be parts available so you could have difficulty selling your £400 excess instantly on the SM. That's not a disaster as long as you're aware of the possibility and have a plan of what you'd do about it if it should come to pass. Considering the number of loans in the pipeline now, and the size of some of them, I suspect it will happen sooner rather than later. I would think anything sub 1 mil is going to be oversubscribed. Up to to 2 is still fairly safe..I have not been placing 5 times my desires... Just sharing my thoughts on the setup. I did see something on the secondary market today for the second time since ive signed up. 37p. Good news that the bidding system used to be worse, it shows SS are open to change. As user base grows they will need to find considerably more opportunities (potentially increasing risk) or change the bidding system to avoid alienating those who end up with next to nothing.
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Greenwood2
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Post by Greenwood2 on Dec 1, 2015 8:40:31 GMT
How do you take money out now? If I go to UK withdrawal I get re-directed to 'Please complete a deposit from a UK bank', which then wants me to sign up to 'TransferWise', which I know nothing about and don't want to sign up to. If I continue with that what information am I going to have to give? It's anti-money laundering and fraud protection stuff that you just have to put up with IMO. There is no real alternative if you want to get your cash back. I guess you are right but it's daft. I've already paid money in and taken money out using my bank details. It would be nice if SS gave details of who TransferWise are and why we should trust them with our banking details, rather than just running into it when you want to withdraw funds. Apart from money laundering etc, I'm also concerned about identity theft, so I like to know a bit about who I'm dealing with.
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SteveT
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Post by SteveT on Dec 1, 2015 8:43:08 GMT
It's anti-money laundering and fraud protection stuff that you just have to put up with IMO. There is no real alternative if you want to get your cash back. I guess you are right but it's daft. I've already paid money in and taken money out using my bank details. It would be nice if SS gave details of who TransferWise are and why we should trust them with our banking details, rather than just running into it when you want to withdraw funds. Apart from money laundering etc, I'm also concerned about identity theft, so I like to know a bit about who I'm dealing with. I believe they have a website.
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Post by highlandtiger on Dec 1, 2015 8:51:53 GMT
I have used transferwise in the past for sending foreign currency abroad. Very efficient and way cheaper than any bank transfer. I've not had money sent to me via them though
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ianj
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Post by ianj on Dec 1, 2015 8:58:15 GMT
How do you take money out now? If I go to UK withdrawal I get re-directed to 'Please complete a deposit from a UK bank', which then wants me to sign up to 'TransferWise', which I know nothing about and don't want to sign up to. If I continue with that what information am I going to have to give? It's anti-money laundering and fraud protection stuff that you just have to put up with IMO. There is no real alternative if you want to get your cash back. As Transferwise is a low-cost mechanism for moving money abroad, there would appear to be no relevance to a UK withdrawal. Perhaps savingstream might like to comment? Edit: That's probably a tad optimistic. Give them a call and ask why.
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Post by highlandtiger on Dec 1, 2015 9:09:29 GMT
Just for the record, when I go to the UK withdrawal page, it comes up with the details of my bank. No mention of transferwise at all.
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Greenwood2
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Post by Greenwood2 on Dec 1, 2015 9:13:43 GMT
Just for the record, when I go to the UK withdrawal page, it comes up with the details of my bank. No mention of transferwise at all. I think mine used to do that, or I had to fill the details in, but not today.
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will
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Post by will on Dec 1, 2015 9:23:35 GMT
I've shifted money to AND from abroad with Transferwise. I rate them as very good  |
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SteveT
Member of DD Central
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Post by SteveT on Dec 1, 2015 9:29:22 GMT
Just for the record, when I go to the UK withdrawal page, it comes up with the details of my bank. No mention of transferwise at all. Mine too
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