Why P2P Lending Should Be A Sizeable Part Of Your Retirement Planning

Daz2009

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

Aceace

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

The OP was/is invested in MoneyThing and Lendy, but not FS or Collateral. 

Lendy never got past the experimental stage for me, so only a low 3 figure sum was invested. I thought MoneyThing was better. It passed my experimental stage, but I only had a mid 4 figure sum invested at its height due to a lack of what I thought were good quality loans. The total I have outstanding on these two platforms represents just 7% of my total P2P profits. I expect my eventual losses to be much less than that. 

I only have 2 platforms where the total now invested is more than my all time P2P profits, and one of these will be below that level within 2 months. 

I agree that RS and Z were OKish, but weren't worth the risk. I was already withdrawing from both before they stopped accepting new cash. They are both a drag on my overall returns. 

agent69

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

Aceace

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

I do have very significant exposure to P2P, but not significant amounts in those platforms. 

I only joined the P2P party at the beginning of 2018, so perhaps that's a significant factor. There are a wealth of decent platforms to choose from now IMO.

agent69

Aceace said:

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

I do have very significant exposure to P2P, but not significant amounts in those platforms. 

I only joined the P2P party at the beginning of 2018, so perhaps that's a significant factor. There are a wealth of decent platforms to choose from now IMO.

The problem is that the 4 platforms mentioned above all looked decent a few years ago. The majority do to begin with and it's not until the sticky brown stuff hits the fan that the whole operation starts to unravel.

If you are so enamoured with P2P lending could you tell us who the decent platforms are?

Aceace

agent69 said:

Aceace said:

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

I do have very significant exposure to P2P, but not significant amounts in those platforms. 

I only joined the P2P party at the beginning of 2018, so perhaps that's a significant factor. There are a wealth of decent platforms to choose from now IMO.

The problem is that the 4 platforms mentioned above all looked decent a few years ago. The majority do to begin with and it's not until the sticky brown stuff hits the fan that the whole operation starts to unravel.

If you are so enamoured with P2P lending could you tell us who the decent platforms are?

I'll just get my tin hat first....

Yes. IMO CrowdProperty are a shining example. Loanpad, Proplend,  Unbolted, CapitalRise and ABLrate are all in the "decent" category. 

Yes they all have their issues, what investment doesn't. CrowdProperty is very oversubscribed which males it tricky to get invested. Unbolted has a vexatious litigant trying to take them on. Loanpad is fairly new,  There have been defauls on ABLrate... I expect you will point out some others... But, IMO, they are all decent platforms where good risk adjusted returns can be made. 

bostonerimus

Aceace said:

agent69 said:

Aceace said:

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

I do have very significant exposure to P2P, but not significant amounts in those platforms. 

I only joined the P2P party at the beginning of 2018, so perhaps that's a significant factor. There are a wealth of decent platforms to choose from now IMO.

The problem is that the 4 platforms mentioned above all looked decent a few years ago. The majority do to begin with and it's not until the sticky brown stuff hits the fan that the whole operation starts to unravel.

If you are so enamoured with P2P lending could you tell us who the decent platforms are?

I'll just get my tin hat first....

Yes. IMO CrowdProperty are a shining example. Loanpad, Proplend,  Unbolted, CapitalRise and ABLrate are all in the "decent" category. 

Yes they all have their issues, what investment doesn't. CrowdProperty is very oversubscribed which males it tricky to get invested. Unbolted has a vexatious litigant trying to take them on. Loanpad is fairly new,  There have been defauls on ABLrate... I expect you will point out some others... But, IMO, they are all decent platforms where good risk adjusted returns can be made. 

If you are happy with P2P then great. Obviously many people do not share your enthusiasm. So maybe just enjoy your investment, you don't have to be an evangelist about.

TUVOK

I've invested in two P2P, Ratesetter and Zopa.

As many will know Ratesetter has gone and I'm withdrawing from Zopa every day via my holding account.
I've received 3 - 5% from both, but I believe now with bad debts mounting, it's time to get out. 

Albermarle

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

When I first started with P2P , all the four platforms mentioned , were clearly at the riskier end of the spectrum . 12% + interest rates was an obvious red flag ,

Malthusian

Albermarle said:

agent69 said:

Aceace said:

Daz2009 said:

I take it the OP wasn't invested in Moneything,Collateral,Lendy or Funding Secure to name but 4 who've lost me thousands of pounds.
Only Ratesetter and Zopa could be considered a success for me and even then the returns were under 5%.
I wouldn't touch P2P with a barge pole

I'm sorry for your losses. You seem to have been very unlucky in your choice of platforms. 

 

Not really, they were 4 of the most prominent platforms around. I would be suprised if anyone with significant exposure to p2p wouldn't have invested significant amounts.

When I first started with P2P , all the four platforms mentioned , were clearly at the riskier end of the spectrum . 12% + interest rates was an obvious red flag ,

But if you weren't getting 12%+ interest you were probably getting similar interest rates to those available from a fully-regulated high yield corporate bond fund, with significantly less transparency and liquidity. By the time you're done waiting for your money to come back from the likes of Ratesetter you have to ask what the point was.

Someone who spread their money between six different "platforms" (quotation marks because the word "platform" in the P2P world corresponds to what in the fully-regulated world would be described as a "fund") and being told they got unlucky does not compute.

Conventional investment wisdom (e.g. Fisher & Lorie) says if you've spread your money across six different funds which in turn are spread across hundreds / thousands of borrowers you should have done enough. Modern Portfolio Theory of course assumes you don't buy six different pigs in six different pokes from the pig-to-poke marketplace.

bostonerimus said:

If you are happy with P2P then great. Obviously many people do not share your enthusiasm. So maybe just enjoy your investment, you don't have to be an evangelist about.

Unless your returns depend on new money entering the platform so existing investors can continue to cash out at par values. Then being an evangelist becomes highly advisable.