archie
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Post by archie on Jun 12, 2016 7:05:12 GMT
I've put the max possible into premium bonds. This is my safety net. The return is rubbish but the cash is safe. The odds of winning big are also ridiculously long but I just like the monthly 'Good News from Ernie' anticipation. Adding to which the return has been greater than I would have got from a savings account. My safety net is premium bonds too 
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spiral
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Post by spiral on Jun 12, 2016 8:03:29 GMT
I too am in the "retired early" camp but at an age where I am too young to draw my pension yet.
I have at least 5 years to go before I can even contemplate drawing the pension but that would be dependent on how severe the early withdrawal penalties are.
I have precisely £0 of income so live solely from my savings pot and any returns I can get on those.
I have about 1/4 of my wealth (excluding my home) invested in P2P spread around 5 platforms but with RS having by far the greatest chunk primarily in the 5yr market.
I am happy with that proportion of risk this affords me but would probably reduce the sums if/when B/S rates return to 5%ish for 5 yr bonds.
Many of these types of bonds have repaid in the last 12 months leaving me with a lot of low interest cash.
Having seen some of the other comments in this thread, I think I might be tempted to put some into Premium bonds as an additional backstop.
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Post by justdabbling on Jun 12, 2016 8:36:13 GMT
Premium bonds have that little frisson of excitement, but I believe on average punters receive less than from having Santander bank accounts which could be a backup to P2P and do at least pay the %
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archie
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Post by archie on Jun 12, 2016 8:48:56 GMT
Premium bonds have that little frisson of excitement, but I believe on average punters receive less than from having Santander bank accounts which could be a backup to P2P and do at least pay the % No tax on premium bonds though. Someone has to win the big prizes, you never know 
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agent69
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Post by agent69 on Jun 12, 2016 9:09:28 GMT
At the moment, it is simply savings for me (reinvesting all the interest), but in the future (the distant future) I'm hoping it could become an income so that I can work less and enjoy life a bit more. That's only in regards to my personal SS A/C; I also have a business SS A/C. I keep my income (wage & dividends) from my business to just below the higher rate, and reinvest any excess the business has with the SS business account; the idea being, in the future the interest from the SS business A/C could provide me a basic wage.
Due to the above, I probably hold too much (which others would consider not sensible) of my available funds in SS (95% Personal, 80% Business), so this could be is considered a high-risk strategy. The reason that I am (currently) comfortable in doing so, is because of the availability of the SM, and because the SM is currently liquid. Any sign that the liquidity of the SM starts to wane, I will reduce my portfolio with SS.If you do want diversity, you could always try Thincats, I like TC. If you can look past the messy SM and the fact that nobody will talk to you, it has some good offerings. My dream platform would be AC with TC's loan pipeline. I invest in SS because it's easy, reasonable rates for the risk and currently easy to get out. My main concern would be the lack of diversification, given that all the boats appear to have gone and it's now all property. Funnily enough I also have some premium bonds (a christening present about 60 years ago). It's only £10 and I've never won a penny. I wonder what the £10 would be worth if it had spent 60 years in a current account instead.
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Post by bracknellboy on Jun 12, 2016 10:06:37 GMT
Funnily enough I also have some premium bonds (a christening present about 60 years ago). It's only £10 and I've never won a penny. I wonder what the £10 would be worth if it had spent 60 years in a current account instead. My other half in same position, along with a good portion of the nation I think. I wonder how much is invested in PBs in these trivial amounts. I on the other hand have close to the full limit in them. I've dipped in and out of them for a number of years, depending on balance of 'rate' against the rest of the market. I only take into account the effective rate that comes from considering the smaller prizes rather than the headline rate of total payouts (since the probability of ever 'getting lucky' with the higher bands is vanishingly small). Though they have over the years increased the portion allocated to the lower bands so the difference has narrowed anyway. For what amounts to a 30 day notice account fully govt guaranteed then for a higher rate taxpayer they are not a daft proposition as a home for some cash, providing you put in enough that your returns are reasonably predictable over a moderate duration.
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Post by earthbound on Jun 12, 2016 10:18:16 GMT
If you do want diversity, you could always try Thincats, It's only £10 and I've never won a penny. I wonder what the £10 would be worth if it had spent 60 years in a current account instead. averaged 3% p/a compounded... £60.36p..  less tax  less inflation  result 
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nick
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Post by nick on Jun 12, 2016 11:10:10 GMT
It probably won't lead to the loss of all your money, but it is likely to result in some loss. The cost to pay a third party to run-off the loan book is likely to be significant. When Trustbuddy went bust only 75% of loan value was realised after fees (although the nature of the loan book was very different - pay day loans). The other risk that is always present, but often overlooked is fraud risk. This risk is somewhat mitigated by regulation, but is far from eliminated. This is again illustrated by the failure of Trustbuddy, which as a listed company, was subject to significantly regulatory scrutiny and to full statutory audits, but still managed to perpetuate a ponzi scheme for several years that led to significant investor losses. Unfortunately P2P platforms aren't covered by the Financial Services Compensation Scheme, which is the usual backstop to safeguard client money/assets in the banking, investment and insurance industries. Personally, I try to manage this risk by spreading my investment across many platforms weighting my allocation to those that are most established in terms of age and size. Good luck with 75% especially if Lendy Ltd were insolvent. Remember in a significant number of loans it is the principal and any liquidator is going to treat the lenders in those loans as unsecured creditors of Lendy Ltd. Further whatever the quality of the loan book debtors of an insolvent company have a million and one reasons not to pay, rarely are any justified but without the management of the platforms there to challenge them difficult and costly to defeat. Add to that the quality of the loan book in the first instance. ....... I don't think we are creditors of Lendy - under the new T&C's we lend money direct to the end borrower. Uninvested funds should be protected as segregated client money (assuming that proper procedure had been followed up to failure - which is invariably never the case eg MF Global etc. I agree that 75% recovery is likely optimistic in the event of SS failing as debtors will invariably try it on in the confusion and chaos in the changeover in administration of the loans.......
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agent69
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Post by agent69 on Jun 12, 2016 11:12:02 GMT
It's only £10 and I've never won a penny. I wonder what the £10 would be worth if it had spent 60 years in a current account instead. averaged 3% p/a compounded... £60.36p.. less tax less inflation result and had it been in SS for 60 years it would have got me about £9k
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Liz
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Post by Liz on Jun 12, 2016 11:23:10 GMT
Greed! I see 12% and a provision fund, however 10% property deals with much lower LTV'S might be a better option.
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Post by earthbound on Jun 12, 2016 11:36:29 GMT
averaged 3% p/a compounded... £60.36p.. less tax less inflation result and had it been in SS for 60 years it would have got me about £9k  i thought you must have made a mistake with £9k... but you didn't... and i cant believe it . 
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Post by dualinvestor on Jun 12, 2016 11:44:28 GMT
Good luck with 75% especially if Lendy Ltd were insolvent. Remember in a significant number of loans it is the principal and any liquidator is going to treat the lenders in those loans as unsecured creditors of Lendy Ltd. Further whatever the quality of the loan book debtors of an insolvent company have a million and one reasons not to pay, rarely are any justified but without the management of the platforms there to challenge them difficult and costly to defeat. Add to that the quality of the loan book in the first instance. ....... I don't think we are creditors of Lendy - under the new T&C's we lend money direct to the end borrower. Uninvested funds should be protected as segregated client money (assuming that proper procedure had been followed up to failure - which is invariably never the case eg MF Global etc. I agree that 75% recovery is likely optimistic in the event of SS failing as debtors will invariably try it on in the confusion and chaos in the changeover in administration of the loans....... No you are not creditors of Lendy Ltd under loans made under the new T&Cs. You almost certainly are with loans made under the old ones. In those Lendy acted as principal to both the lenders and borrowers. Edit there are a number of those loans overdue and one in default.
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Post by earthbound on Jun 12, 2016 11:50:00 GMT
An interesting fact for younger investors when the *IFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then.  Unfortunately i'm not, i didn't and they wern't ... EDIT * |
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stevio
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Post by stevio on Jun 12, 2016 12:39:26 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... Or simply double their investment in 7yrs outside ISA
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cooling_dude
Bye Bye's for the PPI
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Post by cooling_dude on Jun 12, 2016 13:18:32 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34) I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ... Going via the interest compounded, you would be a millionaire within 33yrs, but you would have to have an offshore account and a very good accountant to avoid the UK taxes  .
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less tax 
less inflation 
result 
i thought you must have made a mistake with £9k... but you didn't... and i cant believe it . 
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