Has the market peaked?

Thrugelmir

chucknorris wrote: »

but then I started to think if a tracker can give me 4%,

Which tracker currently yields this?

chucknorris

Thrugelmir wrote: »

Which tracker currently yields this?

Vanguard's VUKE ( I realise that the ftse 100 is not an ideally safe tracker (due to its lack of diversity), but I still think that it is better than a single company share)

http://www.hl.co.uk/shares/shares-search-results/v/vanguard-funds-plc-ftse-100-ucits-etf-gbp

chucknorris

ilovehouses wrote: »

ISF (Ishares FTSE tracker) is at 4.1% with charges of <0.1%.

I moved into it from IUKD which is over 5% but no longer offers the diversification I was looking for.

I'm in that one too! When they fall it is good to switch from one to anther, lock a paper loss in, to carry forward as a CGT offset when I eventually sell property. I've got £100k of 'paper loss' carried forward, that will save me £28k in CGT, but as the market recovered, no loss really was suffered!

chucknorris

ilovehouses wrote: »

I'm now..

VWRL - 46% - world tracker
ISF - 30% - UK tracker to give some home bias
IUKD - 7% - legacy holdings I can't be bothered to sell
VGOV - 17% - the lowest risk asset I can find

I used to have a portfolio of single shares and I've had a great few trading years since 2009 being well ahead of the world and local benchmarks but for the last two years I would've been better off with trackers. I've either lost my edge or stopped being lucky - either way I'm letting the world work for me now.

This is what I am moving towards in the next 5-7 years:

35% equities (much lower than originally targeted)
23% fixed pension (DB/SP)
22% investment property (hold 1.5 properties for at least a decade longer)
15% bonds (try and find a bond(s) paying near net inflation)
5% cash (regular savers, NSI cert, savings accounts)

The above is a moving target which is constantly under consideration.

economic

chucknorris wrote: »

This is what I am moving towards in the next 5-7 years:

35% equities (much lower than originally targeted)
23% fixed pension (DB/SP)
22% investment property (hold 1.5 properties for at least a decade longer)
15% bonds (try and find a bond(s) paying near net inflation)
5% cash (regular savers, NSI cert, savings accounts)

The above is a moving target which is constantly under consideration.

My current split (im 34):
- Pension (all stocks): 21%
- Stocks: 43%
- P2P: 11%
- Cash: 25%

I plan to move around half my cash to stocks over the next few years. I am also overweight US stocks (banks and tech and some biotech). Figure since i am only 34, i can take a bit of risk and i see US and tech/biotech in particular being very good long term.

chucknorris

economic wrote: »

My current split (im 34):
- Pension (all stocks): 21%
- Stocks: 43%
- P2P: 11%
- Cash: 25%

I plan to move around half my cash to stocks over the next few years. I am also overweight US stocks (banks and tech and some biotech). Figure since i am only 34, i can take a bit of risk and i see US and tech/biotech in particular being very good long term.

You are much younger than I am, so you are right to take on much more risk than I intend to in retirement. If interest rates eventually get much higher, say to a base rate of 5%, and at least 2% above the rate of inflation, I would probably have a bit more in savings accounts.

How is P2P working out for you?

economic

chucknorris wrote: »

You are much younger than I am, so you are right to take on much more risk than I intend to in retirement. If interest rates eventually get much higher, say to a base rate of 5%, and at least 2% above the rate of inflation, I would probably have a bit more in savings accounts.

How is P2P working out for you?

I think P2P has been good for me so far. I'm with the following:

Ratesetter, Lending Works, Assetz, Funding Circle, Landbay, Unbolted, AblRate

The first 4 i have the most money with as i really like their platforms and risk-return is very good IMO. They are all well established platforms pretty much. No losses so far.

I am also with Lendy, Collateral, Moneything and am near to exiting from these completely. Poor platforms imo because of bad underwriting (Lendy - experienced a few defaults) and poor pipeline of loans (MT and collateral).

As long as you are well diversified and the risk-return is good i think you should be ok. Underwriting standards of platforms are obviously very important too.

At around 10% of my investible assets i think that feels about right. I'm not looking to add or reduce from here.

GreatApe

economic wrote: »

I think P2P has been good for me so far. I'm with the following:

Ratesetter, Lending Works, Assetz, Funding Circle, Landbay, Unbolted, AblRate

The first 4 i have the most money with as i really like their platforms and risk-return is very good IMO. They are all well established platforms pretty much. No losses so far.

I am also with Lendy, Collateral, Moneything and am near to exiting from these completely. Poor platforms imo because of bad underwriting (Lendy - experienced a few defaults) and poor pipeline of loans (MT and collateral).

As long as you are well diversified and the risk-return is good i think you should be ok. Underwriting standards of platforms are obviously very important too.

At around 10% of my investible assets i think that feels about right. I'm not looking to add or reduce from here.

What returns do p2p provide and can you put it in an ISA wrapper?

economic

GreatApe wrote: »

What returns do p2p provide and can you put it in an ISA wrapper?

It depends on the platform but they can range from 3-4% to 15%. Higher returns generally more risky. Although some offer 12% for a lot of risk then ones which offer 15% so you gotto really understand what you invest in.

Lot of it is down to platform underwriting and the ones i am invested in seem to be the good ones. The sweet spot i think is the 5-8% range in a diversified portfolio of loans. Reduced risk due to diversification (5-8% loans more available then 12% loans) and still offer a good return.

I havent looked too much into ISAs (i prefer to use them for stocks) but i think most now do offer ISAs.

chucknorris

economic wrote: »

It depends on the platform but they can range from 3-4% to 15%. Higher returns generally more risky. Although some offer 12% for a lot of risk then ones which offer 15% so you gotto really understand what you invest in.

Lot of it is down to platform underwriting and the ones i am invested in seem to be the good ones. The sweet spot i think is the 5-8% range in a diversified portfolio of loans. Reduced risk due to diversification (5-8% loans more available then 12% loans) and still offer a good return.

I havent looked too much into ISAs (i prefer to use them for stocks) but i think most now do offer ISAs.

I was going to look at P2P earlier this year, but as we are intending to buy a home before selling our existing one, I need to keep hold of my cash at the moment, until we have bought (then sold). But I wouldn't tax wrap them either, I see them as potentially quite risky, and IMO it is bad enough to lose with reducing my tax wrapped investments. It was the 10-12% loans that were secured on property that interested me.