As a now retired old fart, I have decided to invest some money (for my son), and was wondering about P2P investing.
Does anyone have any exprience and names of P2P companies they would recommend. My perfect scheme would be just to place the money in a divested fund and getting a decent return (above inflation),with very low risk. The investment would be about £50k with 90 day access.
Tax is not a issue now that i am not earning.
Many thanks.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
Just keep it between you and him.
If you make it "official" you can get into tax and probate issues after you die.
If you want to give him £50k, buy a couple of PP's or a few Rolex etc. That way you can use them, then you die and then they pass to him either to wear or sell without any paper work.
I use Zopa, Assetz capital and Lendinvest. For the amount and timesframe you're looking at, I'd recommend Assetz Capital. They have an Instant access acoount paying about 3.5% and a 30 day account paying around 4.5%. There are opportunities to earn more but access isn't guaranteed withing your timeframe.
I've been experimenting with FundingCircle. Only put £1k in, but so far so good. My estimated return is 7.2% this year.
What is peer to peer investment?
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It is actually pier to pier investment and involves the funding and delivery of significant bridging infrastructure between strategic piers around the UK. The plan is to link various "staycation" destinations and enjoy the inevitable financial benefits that will bring to the UK economy.Originally Posted by Estoril-5
Beginning to sound a lot like tax evasion Mick.
Thats quite unhelpful.....
You can find more information about P2P investment here or here FundingCircle
I've used Funding Circle for a while. Recently, there have been a few downgrades of debtors so I'm more cautious than I was, but prior to that, the returns were pretty stable.
Happy to introduce someone and if there is any financial benefit off the back of it, I'm happy for it to go in the charity pot.
Mick, did you know that HMRC's IHT office can and sometimes will examine house contents insurance documents to check declared probate values against sums insured, as well as for specified individual high value items?
It is 100% legal - I checked with HMRC.
Please do not confuse it with gifting cash for property etc which is tax evasions because if you give your kids £50k as a deposit on a property, they will buy a better house and probably pay lower interest rates which equates to an income substitute. Watches are just "things".
No I did not know that but it is answered in the above response to Captain Morgan.
The only caveat is that the law constantly changes, so check again if you do it some time in the future.
FWIW I've been playing with Funding Circle also, 6 to 7 per cent returns are achievable at the lower end of the risk spectrum, as always there's no guarantees.
Thanks all. The Assetz scheme sounds about right for what I am looking for.
As for the watches, that's already in hand, but the only tax benefit is that they are free of CGT. Their actual value is forms part of my estate and would be taxed accordingly when I snuff it - unless I gift them to him the watches at least 7 years before I die.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
Much like Funding Circle:
https://www.folk2folk.com
The problem with funding circle from the OP's perspective, is the liquidity and access to funds.
The problem with funding circle from the OP's perspective, is the liquidity and access to funds.
I don't think £50k of watches are just 'things' that's a significant investment.
I've just signed up to Assetz after reading some good stuff. I'm also on funding circle (had quite a bit of bad debt on that so not performing brilliantly for me), rate setter - which has been better. Also recently been using MoneyThing, all of their loans are secured against assets with good LTV. They don't have too many new loans though so you have to be quick to get on them!
Shares in Shell do 5% dividends. Reinvest the divis and watch it grow!
Not according to the Financial Times ,
Funding Circle, the largest peer-to-peer company in the UK, has received authorisation from the Financial Conduct Authority
The Financial Times, May 2017
Andy, How old is your son?
If hes not going to need the money for quite a while than why not invest in some stockmarket funds/trackers, over the longterm equities will outperform all other types of investments.
Whoosh
- - - Updated - - -
I thought it was quite funny 😂
Caution - the price of equities can rise and fall, and you may not get back the amount you invested.
Bloody hell. Thanks for clearing that up. I was just away to transfer £50k to an investment broker called Piers, supposedly to help fund a bridge from Blackpool Pier to Brighton Pier. If I’d got stung with that one I’d have been skint and would have had to take a long walk off a short... pier.
Guys, just to double check... a bridging loan is... never mind.
Last edited by cmcm3; 21st November 2017 at 20:58.
Interesting thread. I’m a bit of a traditionalist in that I believe that returns equate to risk so I’ve avoided peer to peer. Might be worth a small proportion of my portfolio but I’d be cautious as the returns from these investments have yet to be tested during a proper market downturn.
Sorry but that’s rubbish.
Agreed.
+1, honestly Mick, where do you get this gibberish?
He is 15 (16 in March). I want to put together a fund to help him through uni (if he wants to go) or something he can use towards a deposit on a house - when his mother lets him leave home (if ever).
He has enough of his own money already (thanks granny/granddad) to get a car, etc, so he will not touch this until he is at least 19.
A tracker might be a better option, however Capital is at risk.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
4 years is a short time horizon. I wouldn’t choose a tracker personally unless its for 10 years+. Markets will almost certainly dive in the next 5 years. Mood amongst the fund managers at my workplace suggests it will happen in the next 2 years.
I didn't recommend it for the OP because of his circumstances, but Lendinvest is one of my favourites because all loans are secured against property. Zopa was actually around in 2007-2008 and coped well, but I take your point. What I would say though, is I'd be more comfortable with money loaned against a decent LTV on property than in the equity market, in a downturn.
HMRC in 2014. Nothing to stop you doing the same.
I have to say Mick, if you’re a troll you are absolutely first class. If not, it might be worth you having a word with your doctor.
This company might be of interest to you
https://www.vanguardinvestor.co.uk/
Low cost managed funds with the choice to invest at your own level of risk to return.
Difficult to see some kind of market, "reset", not happening in the next couple of years tbh.
If that’s the case, where will the smart money be?
Cheers,
Adam.
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Blimey Adam, if I knew that I wouldn't be wasting my time on here now would I.
The old saw about diversification of asset types and investments, I think, remains relevant.
Good stuff. Many thanks.
I have a meeting scheduled with my IFA to hear what he suggests. The last time we spoke he was suggesting a VCT, which would offer me £9000 Tax relief on £30k plus whatever return it generated, but the money is tied up for 5 years.
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
Primarily in the agricultural sector. Hedge funds.
Good luck everybody. Have a good one.
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