Only freedom will do

gallygirl

edinburgher wrote: »

Why is that shameful?

Because my little green soldiers need to be working for me all the time . Currently projecting a 7.2% return after fees and bad debts :T. Reinvested £20, now got around £950 in there,

edinburgher

Are you investing the min amount possible in each loan GG?

gallygirl

edinburgher wrote: »

Are you investing the min amount possible in each loan GG?

No, my rule of thumb has been no more than 10% of total in one loan but now that I'm nearly up to 1k I'll be changing that to £100 maximum. I hopefully mitigate the risk by going for terms of 12m or less and B or better credit rating - that tends to mean property investments though which means too much money in one sector therefore increasing the risk :wall:.

edinburgher

10% in one loan? So if even one goes tits up you've lost 10% + your interest? :eek:

I prefer the approach of only going for A and lower loans, but with max £20 investment. Probably less risky in the grand scheme of things, although still plenty of risk

gallygirl

edinburgher wrote: »

10% in one loan? So if even one goes tits up you've lost 10% + your interest? :eek:

I prefer the approach of only going for A and lower loans, but with max £20 investment. Probably less risky in the grand scheme of things, although still plenty of risk

It's 'only' a max of £100 at risk per loan though so not as bad as it sounds. If I decide to invest for longer than 12m I'd have a lot more options but I need to keep myself fairly fluid - I don't have a lot of ready cash available as most of it is either in regular savers or earmarked to 'feed' them (£800 a month).

AlexLK

When I get around to the P2P loans, probably after the house is done so a while yet, I was thinking £1,000 into each investment as I cannot deal with £20 here and £50 there. I know there may not be return on the investment but surely over a few you should win more than you lose? Say, if you put £10,000 into ten different investments?

Hope that makes sense.

edinburgher

Luckily there are automation options for all of the main P2P sites that allow you to set preferences so that you can bid on smaller chunks of loans that meet your criteria. You would be exceptionally foolish to risk 10% of your portfolio on a single loan, the loss of even one would be catastrophic (in terms of return). Diversify, diversify, diversify!

It might take you half an hour to get things up and running, but it is time well spent and not a time to be lazy

While we might discuss small loans here and there, they largely tick over in the background with no intervention and are discussed for information.

I'm with you, life is too short to manually lend out £20 chunks (after the initial admin to get the ball rolling).

AlexLK

OK, that makes a lot more sense now.

Can't see me having a go at investing to any sort of level until the house is finished but it doesn't harm to have the information.

Dobbibill

C'mon Scotland :j :j :j

DB and Biggar are cheering you on :T

ourcornercottage

edinburgher wrote: »

Luckily there are automation options for all of the main P2P sites that allow you to set preferences so that you can bid on smaller chunks of loans that meet your criteria. You would be exceptionally foolish to risk 10% of your portfolio on a single loan, the loss of even one would be catastrophic (in terms of return). Diversify, diversify, diversify!

It might take you half an hour to get things up and running, but it is time well spent and not a time to be lazy

While we might discuss small loans here and there, they largely tick over in the background with no intervention and are discussed for information.

I'm with you, life is too short to manually lend out £20 chunks (after the initial admin to get the ball rolling).

I actually like choosing my £20 loans! Then again my total investment is only about £350 over nearly a year so it hasn't effected my life too much!