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Post by Financial Thing on Mar 9, 2016 0:24:40 GMT
In the past the question has been asked what percentage of available cash is held in P2P. I want to look at it from a different perspective. During this year more and more of my 5 year fixed rate bonds (6-7%) are maturing, and so far I've been putting the proceeds into a spread of P2Ps. However, the more I put in the more nervous I get as the % in P2Ps is growing rapidly. My question, therefore, is this: In the interests of diversification and given no need for immediate access, what other investments do people have which provide a reasonable return? By reasonable, I mean at least 4% (and at that level it would have to be really safe) and preferably higher. I would suggest looking at S&P Index funds (I love the U.S Vanguard Total Stock Market offering). It's low fees + dividends make for an excellent long term buy. Some of these other "exotic" investments are akin to gambling. Look at funds with long track records (20 years plus). Stay away from anything with a fee higher than 0.25% annually. IMO putting your cash into an Index tracker (not FTSE) is a pretty safe bet as long as you buy regularly to cost average (meaning you buy during bad and good markets to offset the swings) and don't watch it during bad markets (your emotions will tell you to sell at the wrong times).
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Mar 9, 2016 9:08:50 GMT
In the past the question has been asked what percentage of available cash is held in P2P. I want to look at it from a different perspective. During this year more and more of my 5 year fixed rate bonds (6-7%) are maturing, and so far I've been putting the proceeds into a spread of P2Ps. However, the more I put in the more nervous I get as the % in P2Ps is growing rapidly. My question, therefore, is this: In the interests of diversification and given no need for immediate access, what other investments do people have which provide a reasonable return? By reasonable, I mean at least 4% (and at that level it would have to be really safe) and preferably higher. I would suggest looking at S&P Index funds (I love the U.S Vanguard Total Stock Market offering). It's low fees + dividends make for an excellent long term buy. Some of these other "exotic" investments are akin to gambling. Look at funds with long track records (20 years plus). Stay away from anything with a fee higher than 0.25% annually. IMO putting your cash into an Index tracker (not FTSE) is a pretty safe bet as long as you buy regularly to cost average (meaning you buy during bad and good markets to offset the swings) and don't watch it during bad markets (your emotions will tell you to sell at the wrong times). The OP does not give his/her age. This is good advice for anyone under 40, even older depending on anticipated retirement date. I am in my mid 70s so cannot afford to take such a long view, and I expect that optionstrader will agree that his suggested strategy is a gamble in the short run.
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Post by Financial Thing on Mar 9, 2016 12:26:02 GMT
I would suggest looking at S&P Index funds (I love the U.S Vanguard Total Stock Market offering). It's low fees + dividends make for an excellent long term buy. Some of these other "exotic" investments are akin to gambling. Look at funds with long track records (20 years plus). Stay away from anything with a fee higher than 0.25% annually. IMO putting your cash into an Index tracker (not FTSE) is a pretty safe bet as long as you buy regularly to cost average (meaning you buy during bad and good markets to offset the swings) and don't watch it during bad markets (your emotions will tell you to sell at the wrong times). The OP does not give his/her age. This is good advice for anyone under 40, even older depending on anticipated retirement date. I am in my mid 70s so cannot afford to take such a long view, and I expect that optionstrader will agree that his suggested strategy is a gamble in the short run. Agreed, this strategy is 5 years minimum.
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