At what stage to you diversify?

AimHigh

Fatbritabroad wrote: »

All good at the moment. Tbh i started off with about 2k. You could do ratesetter (and i could refer you if you like so we both benefit) with 1000 and you get 100 bonus if you invest for 12 months for an effective return of 14% at the moment.

After that you have various choices. I use ablrate for high risk manually selected loan which return 13%to 15%. I would make sure you understand the borrower base (very interlinked atm) and i have no more than the interest earned in each COMPANY (not loan) and have 5k in this total which willl be 10% of my non pension investments. There's no getting away that this is a high risk area. I also use lending works which is both insurance and provision backed and gives 6%.i Have another 5k in this. P2p is not anything id put more than 5% of my total net worth in and then id spread across different platforms. Evem j the lending works and ratesetter i dont count as safe. I equate these to buying a single share because of platform risk.
Let me know if you decide to take the plunge and I'll pm you my details

Interesting, thanks for the insight. When you say 'invest for 12 months' do you mean leave your capital in there for 12 months or invest a lump sum of £1000 and continuously add to this over a 12 month period? I definitely need to read up on this a bit more first. I was leaning towards Zopa if I'm honest. But again, it's very early days for me so whilst I can certainly entertain the risk, it might not be a very calculated decision given my current net worth.

AH

Fatbritabroad

AimHigh wrote: »

Interesting, thanks for the insight. When you say 'invest for 12 months' do you mean leave your capital in there for 12 months or invest a lump sum of £1000 and continuously add to this over a 12 month period? I definitely need to read up on this a bit more first. I was leaning towards Zopa if I'm honest. But again, it's very early days for me so whilst I can certainly entertain the risk, it might not be a very calculated decision given my current net worth.

AH

1000 lump sum (which in ratesetter is automatically diversified). After 365 dAYS CONTINUOUS loan you get 100 added to your account.

AimHigh

Fatbritabroad wrote: »

1000 lump sum (which in ratesetter is automatically diversified). After 365 dAYS CONTINUOUS loan you get 100 added to your account.

Roger that - I shall have a read. Many thanks :beer:

Audaxer

Alexland wrote: »

Remember that the FSCS protection is increasing to £85k in 9 months time

That's good to know that the increased limit has been agreed, as I had thought they were still at the consultation stage.