fp
Posts: 1,008 
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Post by fp on Aug 30, 2016 21:42:17 GMT
I hadn't thought about 'house' as part of my investments, makes me feel much better about how much I have in P2P if I take into account about 35% off the top for house! They say your house is most likely your biggest investment, why not count it, after all many choose to downsize or sell and rent in later years, effectively using it as part of their pension pot.
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Post by buggerthebanks on Sept 19, 2016 22:59:49 GMT
I never count my home in a portfolio as I've no intent of putting it at risk (& yes, I do consider cash in the bank as "at risk", alongside gilts & any form of government debt: we (as a country) can't pay it all back & default is inevitable at some point. I'm simply making hay while the sun shines):-
45% P2P
30% cash ISAs
15% equities
7% gold
3% NS&I
Once the major P2P platforms get their ISAs up & running I'll be transferring my cash ISA holdings into P2P. I'm aware this makes me overweight in P2P but I love the concept & (in case you hadn't guessed) hate banks. I'm also looking to go heavily into gold.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Sept 19, 2016 23:04:53 GMT
I never count my home in a portfolio as I've no intent of putting it at risk (& yes, I do consider cash in the bank as "at risk", alongside gilts & any form of government debt: we (as a country) can't pay it all back & default is inevitable at some point. I'm simply making hay while the sun shines):- 45% P2P 30% cash ISAs 15% equities 7% gold 3% NS&I Once the major P2P platforms get their ISAs up & running I'll be transferring my cash ISA holdings into P2P. I'm aware this makes me overweight in P2P but I love the concept & (in case you hadn't guessed) hate banks. I'm also looking to go heavily into gold. Sounds like unbolted's gold backed p2p lending is right up your street ;-)
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Post by buggerthebanks on Sept 19, 2016 23:47:54 GMT
Ha! No: I prefer to take possession of gold, rather than "invest" in it. It's an insurance policy.
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arbster
Member of DD Central
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Post by arbster on Sept 20, 2016 6:57:54 GMT
yes, I do consider cash in the bank as "at risk", alongside gilts & any form of government debt: we (as a country) can't pay it all back & default is inevitable at some point. I'm simply making hay while the sun shines). Presume you've read Planet Ponzi too, then?
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groon
Posts: 39
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Post by groon on Sept 21, 2016 12:47:11 GMT
As a risk-averse saver with no understanding of nor appetite for stocks & shares, I have 20% in P2P (built up over the last 4 years), 2% in Premium Bonds and the remainder in conventional savings accounts -- including cash ISAs and fixed-term bonds -- with banks and building societies (all within the FSCS limit). The money in P2P is currently achieving an average net return of 5.26% across five platforms, using a mixture of highly diversified short- and longer-term loans. That's helping me to achieve a net return of 2.58% on my savings overall, which includes cash earning no interest. Given my risk-aversity and the currently low level of inflation, I'm content with that. I have carefully considered increasing the proportion of my savings in P2P, but having been reading this forum for a while I'm thinking 20% is about right. Some of my even more risk-averse friends are totally aghast  that I lend through P2P at all. |
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Post by eascogo on Sept 21, 2016 22:49:15 GMT
Some of my even more risk-averse friends are totally aghast that I lend through P2P at all. Hi groon. I recommend you do a quick calculation of what you could earn by placing a (much) greater portion of your money in S&S and P2P. I have only limited knowledge of financial matters but I regard investments in S&S index trackers such as Vanguard about as safe as housing. House prices also fluctuate. P2P investment are more risky but diversification across loans, asset types and platform reduce potential losses. To my mind platform failure, however unlikely, is probably the greatest risk. It takes time and effort to find out what individual platforms offer. BondMason is a fairly new platform that very easy to understand. It will earn you 7.5%. This is three times the returns you are getting from the other 80% of your savings. It also takes over the burden of diversification, monitors, and reinvests loans that mature. It couldn't be easier. If you have the time and inclination to investigate further, you might aim for higher returns as offered by some other platforms. Information and advice given on this forum should help. Do bear in mind though that risk aversion has a price: missed opportunity.
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Post by Harland Kearney on Sept 21, 2016 22:59:26 GMT
I think its important people take into consideration when deciding or evaluating others share of the P2P market of there total investment portfolio that the type of loans/platforms you use is critical. As this market grows its becoming more evident that some platforms our more aimed at high risk investment (such as FS?) With high interest paying loans) compared to say AC's fixed income accounts. (30DAA, QAA) or Zopa. The risk factor is greatly adverse, but non the less prone to platform/market/FCA Meddling risk across the board.
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Post by cautious on Sept 22, 2016 7:01:09 GMT
As a risk-averse saver with no understanding of nor appetite for stocks & shares, I have 20% in P2P (built up over the last 4 years), 2% in Premium Bonds and the remainder in conventional savings accounts -- including cash ISAs and fixed-term bonds -- with banks and building societies (all within the FSCS limit). The money in P2P is currently achieving an average net return of 5.26% across five platforms, using a mixture of highly diversified short- and longer-term loans. That's helping me to achieve a net return of 2.58% on my savings overall, which includes cash earning no interest. Given my risk-aversity and the currently low level of inflation, I'm content with that. I have carefully considered increasing the proportion of my savings in P2P, but having been reading this forum for a while I'm thinking 20% is about right. Some of my even more risk-averse friends are totally aghast that I lend through P2P at all. Hi Groon, It looks as though your savings spread is a mirror image of mine; I have 37% in P2P (over 3 platforms) and my overall net return is currently 3.78% Regards
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groon
Posts: 39
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Post by groon on Sept 22, 2016 14:00:46 GMT
... I'd be interested to know where your P2P cash goes - does it include Wellesley and AC QAA or are there others too? Thanks for your interest Paul123. Just under half my P2P cash is in Ratesetter 1-year and about 10% is in Zopa Classic; I'm getting just over 4% on those. About 20% is in AC, spread across manual, green energy, GBBA and QAA; I'm getting 7.4% on that just now but I have a few quid in Ippy and Eppy so that may dip. The rest is in FC (5.5%), ReBS (7%) and FK (9%). I just realised, I'm on six platforms, not five as I originally wrote. Ho-hum, can't add up. Thank you other posters for your comments and advice, which are much appreciated. My level of understanding of these matters can only go up and with any luck, so will my returns 
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Post by cautious on Sept 22, 2016 14:23:17 GMT
Hi cautious & groon , it looks like you are both being very careful with your savings and why not. My circumstances dictate that I use platforms that are certainly more risky but so far seem to offer better returns (TC, SS, MT, AC, BM). I have friends who ask about me P2P but mention possible loss of capital and they run for the hills! I'd be interested to know where your P2P cash goes - does it include Wellesley and AC QAA or are there others too? Hey paul123, I was invested in Wellesley but when rates dropped I left when it matured. Now in RS (24%), Zopa (12%) and LendInvest (1%) . Just started witH LI and all my RS and Z repayments are going there for the better return, averaging 6.5%. Picked LI because it's a profitable platform and the loan is asset backed. Regards
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alanp
Member of DD Central
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Post by alanp on Sept 23, 2016 10:31:44 GMT
The main factor determining what % is in P2P is deciding what is included in your "entire portfolio". As we have heard already some people include their residential property (less mortgage), some include pensions and some don't.
Personal choice I know but will severely skew any comparisons between posts. Another important factor is whether you are trying to generate INCOME or grow your overall ASSETS as has also been pointed out.
For us (couple) if I exclude house and Defined Benefit pensions but do include Defined Contribution pension / SIPP I arrive at:
Cash - 34%
P2P - 5%
S&S in DC / SIPP - 61%
This is what I tend to think of as my "entire portfolio" as it includes all the elements that I make investment decisions over from "spare cash".
If I include the house I get:
Cash - 6%
P2P - 0.9%
S&S in DC / SIPP - 10.9%
House - 82.2%
Someone else could have the same £s values for Cash, P2P and SIPP but have very different percentages as they are at the start of paying off a mortgage instead of having an end date in sight.
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Post by buggerthebanks on Sept 23, 2016 17:44:50 GMT
yes, I do consider cash in the bank as "at risk", alongside gilts & any form of government debt: we (as a country) can't pay it all back & default is inevitable at some point. I'm simply making hay while the sun shines). Presume you've read Planet Ponzi too, then? Arbster, Ha! Yes: I'm familiar with Planet Ponzi. Let's not forget that, by definition, fractional reserve banking is insolvent. There's a reason most of the world has record low interest rates...
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Post by newlender on Sept 25, 2016 5:58:44 GMT
I'm within the M25 so it's; House - 99% Rest 1%  |
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arbster
Member of DD Central
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Post by arbster on Sept 25, 2016 6:32:00 GMT
Taking a simplistic approach, P2P as a percentage of my overall assets (excluding DB pension) represents less than 6%, but as a percentage of my directly investable assets (excluding mortgage, house, all pensions) is about 27%.
I exclude my pensions from most calculations as I'm making the maximum contributions allowable without negative tax implications and therefore do not consider it to be discretionary spend. It's also money that's unavailable to me for a number of years, so I try not to pay too much attention to it, barring the obligatory biannual rebalancing.
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that I lend through P2P at all. 
