liffy99
New Member
Posts: 2 
Likes: 1
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Post by liffy99 on May 6, 2017 10:55:26 GMT
I was quite happy with loan periods of up to 12 months.
But recently there have been a number at 24 months and today I have just invested in one lasting 5 years !
This is too long a time scale for me. I realise I can sell my investment (possibly) but it would be really helpful if BM could offer an option to investors to limit the loan lengths they wanted to be subjected to.
What do others think ?
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archie
Posts: 1,838
Likes: 1,842
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Post by archie on May 6, 2017 11:08:13 GMT
I would have thought the longer loans would reduce cash drag.
I'm not an investor, just an observation.
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fogey
Posts: 171
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Post by fogey on May 6, 2017 19:38:33 GMT
I was quite happy with loan periods of up to 12 months. But recently there have been a number at 24 months and today I have just invested in one lasting 5 years ! This is too long a time scale for me. I realise I can sell my investment (possibly) but it would be really helpful if BM could offer an option to investors to limit the loan lengths they wanted to be subjected to. What do others think ? BM works best if it is treated as a lump sum investment into a long term bond of 3-5 years with a penalty of capital loss if you withdraw in the early years. Definitely not suited to short term horizons of a year or less or as a piggy bank with frequent deposits and withdrawals.
If you wish to add more it is best to see that as another separate long term bond. Everything tells me this is the way to go for best returns and I think BM should really market it as such. Diversification of 0.5% would be a better target to aim for as time goes by.
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