P2P instead of a job

Just from P2P I would hope not as that would suggest you had all your money in P2P, also I would guess if you were using it as a major source of income you would be doing far more research so that in itself would be a job

In theory I could liquidate all my other investments and invest it in the 12% sites and providing was no default I would be quite happy and not need to carry on working, but a) I like my job (most of the time) b) If p2p had a massive crisis you could be left with having a  lot of assets for security but potentially taking years to recover it all and even then less then you put in.

The best way is to invest in lots of different asset classes. 

I think a fair few on here use it to top there pensions/saving  up but I do not think anyone has it as there major source of income.

I genuinely hope no-one would be that foolish.

12% yield is, in part, compensation for future capital losses which when the economic cycle turns will likely wipe out all interest received some years.  

I retired early 12 months ago and have a few years before I can start drawing down pensions (at ages 55, 63 and 65) which are all invested in equity or are final salary (so a mix of equity and bonds).  I also have an inner London townhouse (freehold with no mortgage).  Pensions and property make up 85% of my net worth, but almost all of the remaining 15% is currently in p2p. However, once the economic cycle turns I'll very likely be out of p2p, and be very happy to receive 0.1% or whatever from HSBC.

My intention is over the next few years prior to being able to access pensions, that some of that 15% and the reducing income from it will be spent. I still do some bits of consultancy work if I find the proposition being touted sufficiently interesting, but in general would rather spend the capital I've accumulated  (and any income it generates) than accumulate more.

EDIT:  As an aside, I've noted that from 2018 the chancellor has invalidated my excuse for turning down consultancy assignments - that I wish to keep my earned income down below the c. £6k pa  threshold for class 2 NI contributions (which are a major bureaucratic nightmare, and worthless if you already have 35 years NI contributions)

The trick will be predicting, as accurately & closely as possible, when to exit. That's the hard bit though.

I imagine that a few millionnaires can be found to invest in P2P and thefore earn substantial rewards, as long as times are good. To rely solely on P2P investment as a source of income would require a significant sum just to match average earnings. Putting all available capital into P2P would of course be silly. Capital is at risk and provision funds put in place by some of the P2P platforms are not designed to cope with a serious shock. Also the interest rates offered by P2P may reduce in future (eg competition, increased popularity). Worse, the whole edifice may crumble as a result of panic with large chunks of capital frozen. As a pensioner I am lucky to rely on an assured basic income covering essentials so that I can dare without gaming the house. Half my savings is in P2P, the other half in S&S. If some goes pear-shape so be it. I am of course grateful for the guidance and wisdom offered on this forum.

Surely by then it is too late? Ideally you want to predict that happening a month or two in advance and exit your positions?

Many people are saying that putting all of your investment capital in P2P is foolish. What I cannot understand is, isn't it also foolish to invest everything in S$S?
Also, can someone explain what added advantage I can get by having my investment distributed between P2P and S&S?

As I see it, if the economy goes pear shaped, all parts of it will somehow be effected.