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Post by Deleted on Jan 25, 2017 17:20:35 GMT
When you say a complete platform failure might wipe out your earnings for the year, how many p2p platforms are you involved in? I have lent through 6 but am still exposed to the tune of 20% of my total on one which would obviously be greater than my annual interest, I hope to diversify further as I commit more funds! Too many...I guess I've kissed a few frogs  And it would depend which platform as my portfolio isn't as balanced as I'd like it to be right now. So looking at my list I've tried 19 P2Ps now (tho have ended up deciding against eight, so given I'm probably averaging about 9-9.5% interest across all sites my claim will become even less accurate if I lose any more - well hopefully even a total platform failure wouldn't result in 100% capital loss) and 3 BTL equity. Of the 19 P2P I have 3 I'm actively investing/reinvesting (but not expecting to grow much more) MT, ABL, BC. 3 still growing and happy to do so for now (ABG, COL, OCT - tho still reserving judgement on Oct cos of the queues). 2 hands off steadystate tickover - LW (except when they upset my plans with juicy offers), LB. 3 in varying levels of decline but still investing for now - RS, LI, SS. Then there were 2 from which I made clean exits after deciding they weren't for me - BM & PF. 4 I'm withdrawing from as soon as they repay - Z, LC, OLC and Investly (last two simply due to insufficient deal flow). And two Hotel Californias where I withdrew over a year ago but still have cash stuck - FC & FS (likely to soon be joined by LC). For BTL, 1 increasing (PM), 1 waiting to exit (THC) and 1 still toe dipping (PP) Luckily I'm not afraid of spreadsheets Wow your tax returns must be entertaining! Your P2P report is a veritable banquet of acronyms, I haven't cross-referenced so much since my final year university dissertation and I still haven't worked them all out. My teeny portfolio is perhaps a touch predictable and heavy in lower risk platforms from when I started out. Z, RS, FC, SS, MT, LB and soon to add LW
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pom
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Post by pom on Jan 25, 2017 18:55:38 GMT
Too many...I guess I've kissed a few frogs And it would depend which platform as my portfolio isn't as balanced as I'd like it to be right now. So looking at my list I've tried 19 P2Ps now (tho have ended up deciding against eight, so given I'm probably averaging about 9-9.5% interest across all sites my claim will become even less accurate if I lose any more - well hopefully even a total platform failure wouldn't result in 100% capital loss) and 3 BTL equity. Of the 19 P2P I have 3 I'm actively investing/reinvesting (but not expecting to grow much more) MT, ABL, BC. 3 still growing and happy to do so for now (ABG, COL, OCT - tho still reserving judgement on Oct cos of the queues). 2 hands off steadystate tickover - LW (except when they upset my plans with juicy offers), LB. 3 in varying levels of decline but still investing for now - RS, LI, SS. Then there were 2 from which I made clean exits after deciding they weren't for me - BM & PF. 4 I'm withdrawing from as soon as they repay - Z, LC, OLC and Investly (last two simply due to insufficient deal flow). And two Hotel Californias where I withdrew over a year ago but still have cash stuck - FC & FS (likely to soon be joined by LC). For BTL, 1 increasing (PM), 1 waiting to exit (THC) and 1 still toe dipping (PP) Luckily I'm not afraid of spreadsheets Wow your tax returns must be entertaining! Your P2P report is a veritable banquet of acronyms, I haven't cross-referenced so much since my final year university dissertation and I still haven't worked them all out. My teeny portfolio is perhaps a touch predictable and heavy in lower risk platforms from when I started out. Z, RS, FC, SS, MT, LB and soon to add LW I refer you to my spreadsheet comment  Happy to translate any you don't recognise
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stevio
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Post by stevio on Jan 25, 2017 20:28:16 GMT
Worrying about risk to capital is one thing, but personally I don't see the point in worrying about the tax you pay - you only pay the tax if you earn it, and if a loan goes bad and you make a loss it reduces what you have to pay anyway. But if you'd rather accept rubbish bank rates just to avoid paying more tax because you've earned more then I guess that's up to you. Hi pom, Depends how you look at this and I completely see your view on it. For me I am factoring in issues such as total platform risk where I get little or nothing back. I'm happier to take that risk for 12% but for an effective 4.8% (after tax) or less I'm just not. Especially when I can invest in Stocks&Shares High Risk Portfolio inside an ISA wrapper. Or move my money around current accounts for circa 3% completely FCA protected. Or how about this way, in an IFISA wrapper I can get approx 4.7% with Lending Works when they launch for a moderate/low risk p2p lender or without tax protection virtually the same from SS or MT in a very high risk category where loans are much more likely to default and eat into this percentage Assuming 40% tax, your capital loss rate (not default rate) would generally need to be around 3% or more
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Post by Deleted on Jan 25, 2017 22:26:28 GMT
Wow your tax returns must be entertaining! Your P2P report is a veritable banquet of acronyms, I haven't cross-referenced so much since my final year university dissertation and I still haven't worked them all out. My teeny portfolio is perhaps a touch predictable and heavy in lower risk platforms from when I started out. Z, RS, FC, SS, MT, LB and soon to add LW I refer you to my spreadsheet comment Happy to translate any you don't recognise Ok then ... ABG, OCT? And as for the BTLs ... PP, THC, PM? Really does seem like you've tried them all, must be a full time job! I'd be spread all too thinly if I pick many more up now but always keen to know about the alternates!
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pom
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Post by pom on Jan 25, 2017 22:36:49 GMT
I refer you to my spreadsheet comment Happy to translate any you don't recognise Ok then ... ABG, OCT? And as for the BTLs ... PP, THC, PM? Really does seem like you've tried them all, must be a full time job! I'd be spread all too thinly if I pick many more up now but always keen to know about the alternates! Abundance - not sure quite why I got to that but site is abundancegeneration...., Octopus (Choice) buy to let equity - propery partner, the house crowd, property moose (bottom section of forum) Full time job? Not really... been investing over 18months now, and most need only sporadic input/effort once set up.
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Post by Deleted on Jan 25, 2017 22:47:52 GMT
Ok then ... ABG, OCT? And as for the BTLs ... PP, THC, PM? Really does seem like you've tried them all, must be a full time job! I'd be spread all too thinly if I pick many more up now but always keen to know about the alternates! Abundance - not sure quite why I got to that but site is abundancegeneration...., Octopus (Choice) buy to let equity - propery partner, the house crowd, property moose (bottom section of forum) Full time job? Not really... been investing over 18months now, and most need only sporadic input/effort once set up. I wasn't even aware there was a BTL equities section on the forum ... always learning! Investing is rather addictive and I want to look into each and every one of these platforms but I need to keep some money in an FCA protected environment and leave time for the family/job too 😂
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pom
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Post by pom on Jan 26, 2017 9:26:31 GMT
I wasn't even aware there was a BTL equities section on the forum ... always learning! Investing is rather addictive and I want to look into each and every one of these platforms but I need to keep some money in an FCA protected environment and leave time for the family/job too 😂 Absolutely - even when p2p is working well you can never entirely guarantee when you'll get your capital back, so in my view it would be foolish to invest anything you can't afford to lose or be locked up for a while. As for time... remember Rome wasn't built in a day and that goes double for p2p. Even when you think you've chosen sites you like it can takes months to really get to know them and really be sure they meet enough of your needs - which is why I tried anything I liked the look of rather than trying to choose "the best" upfront. But what do I know? We all have totally different circumstances One thing's for sure, in a year's time your portfolio will undoubtedly look totally different.
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And it would depend which platform as my portfolio isn't as balanced as I'd like it to be right now.
