P2P: sensible allocation?

gterr

Hi there,


I am just taking my first baby steps into the world of P2P lending. I have invested £100 with each of Assetz Capital and Saving Stream, and £50 with Money Thing, just to see how it works, really.


I am aiming to gradually increase and diversify my P2P investments, and reinvest when I receive payments. I was wondering what peoples' thoughts were on what % of my total investment pot might finally, sensibly, be invested in P2P.


I have about £120,000 total pot at the moment: about £35,000 in S&S ISA, £10,000 in a SIPP, and the rest in unwrapped S&S. Almost all in passive investments. I'll be using the unwrapped to stuff the S&S ISA each year and also be making small SIPP contributions for the next few years.


I'd like a little more excitement!


Thanks for your time.

george4064

I would say keep P2P as one of your smaller allocations, 5% max in my opinion.

masonic

I'm targeting 10% by the end of this year, spread between 4 platforms (and of course numerous loans within those platforms).

Biggles

masonic wrote: »

I'm targeting 10% by the end of this year, spread between 4 platforms (and of course numerous loans within those platforms).

Yes, that's about my exposure. I might give it a further year or so to see how they perform before considering a further boost.

TheTracker

I have 10%. That's with a 60/40 portfolio. May raise over time.

mvarrier

I am planning on upsizing our home in around three years so my only S&S is in a SIPP. Of my savings it is currently 50:50 (high interest current accounts:P2P).
It all comes down to personal circumstances.

Like many others I recommend the independent forum (http://p2pindependentforum.com) as a good way to educate yourself and get to know the platforms.

ChesterDog

For what it's worth, P2P has 3% of my liquid assets, about 8% of my investments (I hold a lot of cash).

atush

10% if you spread it around like masonic, 1%-5% if you aren't as careful.

Mr_Prudent

I too am considering dipping a toe into the P2P lending market but am wondering whether it is better to wait until the introduction of the “innovative finance ISA” in April 2016 in order to earn interest, tax free, or will you be able to move any existing loans into the wrapper?

mvarrier

Mr_Prudent wrote: »

I too am considering dipping a toe into the P2P lending market but am wondering whether it is better to wait until the introduction of the “innovative finance ISA” in April 2016 in order to earn interest, tax free, or will you be able to move any existing loans into the wrapper?

I don't think anybody knows the fine details on the IF-ISA as yet. Personally I wouldn't wait. Do a bit of low level investing to get a feel for it.

moneyfoolish

Mr_Prudent wrote: »

I too am considering dipping a toe into the P2P lending market but am wondering whether it is better to wait until the introduction of the “innovative finance ISA” in April 2016 in order to earn interest, tax free, or will you be able to move any existing loans into the wrapper?

That's the way I'm thinking too. I'm hoping it will also be possible to make partial transfers from a cash ISA into ISAs with different P2P lenders.