gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256 
Likes: 160
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Post by gibmike on Aug 22, 2016 20:50:23 GMT
Another of my slightly generic questions for the more experienced investors.
What do you consider to be a sensible allocation for your P2P?
Currently I am:
60% Stocks/Bonds/Alternatives
26% P2P
14% Cash (about 8% to invest yet)
The P2P is spread across LI, AC and a tiny allocation in SS.
Is this too high or do others have different methods for calculation?
Mike
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james
Posts: 2,205
Likes: 955
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Post by james on Aug 23, 2016 1:19:46 GMT
Depends on what's happening in the various markets. Many equity markets are at high ten year cyclically adjusted price/earnings ratios and that implies lower than average future returns, including negative sometimes. Many bonds aren't particularly inspiring either at the moment after many decades of a bull market in them. Given the situation I've greatly reduced my previously high equity rating and switched much to P2P and cash. I'll happily switch back once valuations seem more attractive.
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Post by Deleted on Aug 23, 2016 7:09:06 GMT
26% is much higher than my 5% in P2P, I'd rather see what happens in the next crisis before going in more, I also see P2P as a max 10% min 6% income stream which in my mind is a relatively low return.
I tend to have a far higher proportion in Equity and split that into UK, World wide general, USA, Sweden, Australia. say 80%
I have about 5% in PIBS
I keep 10% in cash (which includes money waiting to invest in equity as deals come up)
TAX
I also look at this from a tax point of view, I like my income tax to be in the Basic area so I can't let my P2P levels rise too much. Capital gains tax is more attractive to pay.
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Post by 2wolfbag2 on Aug 24, 2016 18:43:41 GMT
Me -- I'm around 60% equities, 20% P2P, 20% banks with the rest in a box under the bed
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Post by moneymagnet on Aug 24, 2016 19:46:17 GMT
Right now I'm at 70% Stocks, 15% P2P and 15% Cash.
With Pound cost averaging, tax relief and employer matching money, my private pension, in an index fund, will remain a large portion of my portfolio whatever the markets do, at least for the time being.
I'd really like to get more of the cash into P2P due to the ridiculously low interest rates banks are offering. I like the ease of access with P2P, so will probably be increasing P2P gradually, as long as things look secure in the sector. Would really like it if IFISAs would get approved for some of the P2P platforms I use.
Will probably get a higher ratio into P2P and cash VS stocks as I get closer to retirement, depending on circumstances in the sectors, interest rates, stability, etc.
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rick24
Member of DD Central
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Post by rick24 on Aug 24, 2016 20:22:17 GMT
10% p2p
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Post by trentenders on Aug 24, 2016 20:40:07 GMT
Excluding pension pots, I'm 33% shares, 57% p2p (oops) and 11% cash. All in all, I seem to have 101%, which is nice  |
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jimbob
Member of DD Central
Posts: 317
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Post by jimbob on Aug 25, 2016 9:05:43 GMT
45 P2P 13 Equities 42 Cash (With 0% credit card debt netted off) Excl pension pot which is 100% equities. Unsure of the value of this right now as my employer's broker is moving at a snail's pace. I also get the feeling my "total" is alot less than many others here  |
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Post by richardb67 on Aug 25, 2016 10:00:03 GMT
well most of my investments are wrapped in pensions so if I exclude that the breakdown for savings + investments is
49% Equities/bonds
9% Cash in S&S ISA awaiting investment
24% Cash including retained profit in Ltd Co
12% P2P
If I include pensions the numbers are significantly different
81% Equities/bonds
6% Cash in S&S ISA or pensions awaiting investment
9% Cash including retained profit in Ltd Co
4% P2P
As I'm planning to stop working in the next few years I'm considering a significant increase in P2P to more like 10-20 % of the total with the aim of this being used to generate income. This will be dependant upon a number of factors including IFISA availability and my comfort levels with the various platforms.
Richard
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littonowl
Member of DD Central
Posts: 398
Likes: 355
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Post by littonowl on Aug 25, 2016 15:55:43 GMT
I stopped working a couple of years ago, so now rely on income from my investments for my living expenses. My approximate split is: - c.85% in Stocks and shares: made up of Fixed Income bonds (Corporate bonds on the ORB market), Alternative Income Shares (Infrastructure & Renewables IT's, REITS, Comm Property IT's & even a couple of listed P2P & Direct Lending Companies) defensive income shares & a few choice Income funds (Troy Trojan Inc, Evenlode Inc. etc). Approx. 90% of these funds are held within ISA's.
- c. 14% Cash Banks and B.Socs
- c. 1% P2P !
However, I only started P2P last week, primarily in response to the rate cut. I held most of my cash in high interest accounts such as Santander etc, but with the subsequent cuts in interest rates there and elsewhere, decided the time was now right to move a greater proportion of my cash into P2P (say 5%-7%). So far I've tipped my toe in Ratesetters 1 Year @ 4.2% and just this week started with Moneything (thanks largely to positive comments on this forum!). Like others have said would really like to get some P2P within the IFISA's...any word on when they're finally likely to surface..?!
Over the coming months I intend to research P2P more thoroughly and diversify my investments across loan types and platforms.
Just want to say this is a great forum btw, a superb resource and though I've much more to learn, i already know quite a bit more than I did a couple of weeks ago! 
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Post by bluechip on Aug 25, 2016 19:52:40 GMT
I'm now at 15% Equities (Fundsmith, Vanguard US, Lifestrategy, Troy Trojan and a few others, (just took a massive beating on my PM stocks with Blackrock, roller coaster with them))
45% P2P
35% in Bank Bonds
5% Crowdfunding and other long term/gamble stuff
It's uncertain times, I'll probably shift some of my P2P into equities as the next downturn takes hold, if I'm in time and play it right - not sure where I'll lose most in P2P or my stocks, so trying to hedge as best as possible.
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Post by failedtheturingtest on Aug 26, 2016 12:30:58 GMT
I'm waiting for IFISAs to become a reality before I invest serious money. I am a higher-rate taxpayer so the tax on interest really kills the returns from P2P lending, even with the new tax-free allowance for interest. However, I do have 3% of my portfolio in FC's SME Income Fund (FCIF) which I hold within a stocks & shares ISA. My overall portfolio is 74% stocks and 26% bonds, almost entirely inside SIPPs and ISAs; I count FCIF as part of the bond allocation.
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Post by GSV3MIaC on Aug 26, 2016 14:00:58 GMT
~20% in P2P, 30% stocks/bonds (ISA and SIPP), 5% National Savings (IL, Premium bonds), 15% Cash (fixed rate 4.3% or Inflation, whichever is higher), 30% Cash (some awaiting IFISA, some waiting on capital spend, some just sitting there pending a good opportunity .. 'sitting there' being 'wandering from regular saving account to regular saving account, getting a bit dizzy'). The other 100% was turned into IL pension annuities long long ago, back when rates were sensible.
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Post by yorkshireman on Aug 26, 2016 14:17:03 GMT
~20% in P2P, 30% stocks/bonds (ISA and SIPP), 5% National Savings (IL, Premium bonds), 15% Cash (fixed rate 4.3% or Inflation, whichever is higher), 30% Cash (some awaiting IFISA, some waiting on capital spend, some just sitting there pending a good opportunity .. 'sitting there' being 'wandering from regular saving account to regular saving account, getting a bit dizzy'). The other 100% was turned into IL pension annuities long long ago, back when rates were sensible. I guess that the “fixed rate 4.3% or Inflation, whichever is higher” account is no longer available?! 
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Post by GSV3MIaC on Aug 26, 2016 15:36:16 GMT
'Fraid not, it was a 5 year deal from Birmingham Midshires, and IIRC runs out in just under a year from now. 8<.
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