£20k - what to do with it?

agent69

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

Whack in the instant access Chase account paying 1.5% until you decide. Or take a bit more risk in a p2p account (I like bridging loans, earn c. 7%). Get cashback too with these. The full 20k can go into an ISA so it is tax exempt.

I assume you are joking?

Nope. Been in p2p for years not lost a penny. 

And do you think your experience is typical of P2P investing?

Curious which platforms you have invested in if you have never had a any defaulted loans that didn't repay in full

I think it is typical of some types of P2P yes. If you research and understand how the platforms work. Check out the default rates with Kuflink, Easy Money, Loanpad... To my knowledge no investor has lost any money on these. However diversify risk by investing in multiple loans. By comparison I have lost money in my SS investments/pensions.

So probably not an ideal place for a novice to put his £20k?

If you have managed to confine your investments to 3 platforms where defaults are rare you are either very clever or very lucky.

rach2008

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

Whack in the instant access Chase account paying 1.5% until you decide. Or take a bit more risk in a p2p account (I like bridging loans, earn c. 7%). Get cashback too with these. The full 20k can go into an ISA so it is tax exempt.

I assume you are joking?

Nope. Been in p2p for years not lost a penny. 

And do you think your experience is typical of P2P investing?

Curious which platforms you have invested in if you have never had a any defaulted loans that didn't repay in full

I think it is typical of some types of P2P yes. If you research and understand how the platforms work. Check out the default rates with Kuflink, Easy Money, Loanpad... To my knowledge no investor has lost any money on these. However diversify risk by investing in multiple loans. By comparison I have lost money in my SS investments/pensions.

So probably not an ideal place for a novice to put his £20k?

If you have managed to confine your investments to 3 platforms where defaults are rare you are either very clever or very lucky.

With bridging finance so long as the lender does it's due diligence, there should be an almost guaranteed return (eg mortgage already lined up). And they are secured loans. Loans do sometimes overrun though. Please don't knock something you don't understand.  
One shouldn't invest more than 10% in P2P. I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. Beware platform fees if investing in shares.

Daliah

rach2008 said:

I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. 

You're having a laugh, aren't you? 90% of a long term sum in cash? Where your money is guaranteed to lose buying power?

bostonerimus

Do a detailed budget so you can see where you might save money to add to the 20k
Pay off high interest debt
Then put money in the bank so that you have at least 6 months cash spending emergency fund
Then consider extra mortgage payments
Then consider increasing your pension payments and living off the cash fo a while. When it's spent use the
knowledge you gained from doing your budget to keep making extra pension payments.
Then think about an stocks and shares ISA. Invest in low cost multi-asset funds or a portfolio of a few diversified index funds.

sebtomato

jpsartre said:

sebtomato said:

Best you transfer it to me, and I will take care of it for you. No need for paperwork or red tape.

Sounds great. There's a small fee of £499 to transfer the funds. I'll PM you my details and as soon as I receive it I can get the money straight to you.

Sorry, but I am not feeling the trust here. Unless there is trust between us, won't work.

If there is such fee for transferring the funds, just deduct it from the sum transferred, no issue. 

george4064

If your wife is a Higher Rate Taxpayer (and has sufficient allowance left), then putting it there would be most beneficial as you’ll benefit from the 40% tax relief.

rach2008

Daliah said:

rach2008 said:

I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. 

You're having a laugh, aren't you? 90% of a long term sum in cash? Where your money is guaranteed to lose buying power?

Inflation isn't necessarily bad for everyone. If the OP wants to invest in shares then he should at least invest small sums of the 20k monthly (from a higher rate cash account) rather than all at one go. Slow and steady wins the race.

Daliah

rach2008 said:

Daliah said:

rach2008 said:

I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. 

You're having a laugh, aren't you? 90% of a long term sum in cash? Where your money is guaranteed to lose buying power?

Inflation isn't necessarily bad for everyone. 

Can you explain how cash savings [that you proposed for 90% of the OP's capital] would not be "bad", especially in light of the OP's declared intention to use the money in 25 years time?

agent69

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

Whack in the instant access Chase account paying 1.5% until you decide. Or take a bit more risk in a p2p account (I like bridging loans, earn c. 7%). Get cashback too with these. The full 20k can go into an ISA so it is tax exempt.

I assume you are joking?

Nope. Been in p2p for years not lost a penny. 

And do you think your experience is typical of P2P investing?

Curious which platforms you have invested in if you have never had a any defaulted loans that didn't repay in full

I think it is typical of some types of P2P yes. If you research and understand how the platforms work. Check out the default rates with Kuflink, Easy Money, Loanpad... To my knowledge no investor has lost any money on these. However diversify risk by investing in multiple loans. By comparison I have lost money in my SS investments/pensions.

So probably not an ideal place for a novice to put his £20k?

If you have managed to confine your investments to 3 platforms where defaults are rare you are either very clever or very lucky.

With bridging finance so long as the lender does it's due diligence, there should be an almost guaranteed return (eg mortgage already lined up). And they are secured loans. Loans do sometimes overrun though. Please don't knock something you don't understand.  
One shouldn't invest more than 10% in P2P. I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. Beware platform fees if investing in shares.

I've been in P2P for 15 years and understand exactly how the system works. In terms of secured loans do you mean:

1. loans where the platform claims to have possession of the security, but in reality doesn't
2. loans where the same security has been pledged against several different loans
3. loans where the platform possesses the assets but cannot dispose of them because somebody else claims ownership of them.
   
4. loans where the value of the asset was only a fraction of the value stated in the loan documentation
5. loans where the borrower claims the loan agreement is unenforceable

I've seen plenty of platforms that were flavour of the month today, but 18 months later were in administration. The thing they have in common is that the run down plan that the regulations required them to have were worthless, and that administrators are running up huge bills trying to sort out the resulting mess.

Bridging finance may be the lower risk end of the P2P market, but it only makes up a small % of the marketplace. P2P is definitely not a place for beginers, or people with shallow pockets.

One shouldn't invest more than 10% in P2P? Shame you didn't mention that in your original post.

rach2008

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

agent69 said:

rach2008 said:

Whack in the instant access Chase account paying 1.5% until you decide. Or take a bit more risk in a p2p account (I like bridging loans, earn c. 7%). Get cashback too with these. The full 20k can go into an ISA so it is tax exempt.

I assume you are joking?

Nope. Been in p2p for years not lost a penny. 

And do you think your experience is typical of P2P investing?

Curious which platforms you have invested in if you have never had a any defaulted loans that didn't repay in full

I think it is typical of some types of P2P yes. If you research and understand how the platforms work. Check out the default rates with Kuflink, Easy Money, Loanpad... To my knowledge no investor has lost any money on these. However diversify risk by investing in multiple loans. By comparison I have lost money in my SS investments/pensions.

So probably not an ideal place for a novice to put his £20k?

If you have managed to confine your investments to 3 platforms where defaults are rare you are either very clever or very lucky.

With bridging finance so long as the lender does it's due diligence, there should be an almost guaranteed return (eg mortgage already lined up). And they are secured loans. Loans do sometimes overrun though. Please don't knock something you don't understand.  
One shouldn't invest more than 10% in P2P. I would suggest the OP put 2K in a P2P ISA and the remainder in a cash account. Beware platform fees if investing in shares.

I've been in P2P for 15 years and understand exactly how the system works. In terms of secured loans do you mean:

1. loans where the platform claims to have possession of the security, but in reality doesn't
2. loans where the same security has been pledged against several different loans
3. loans where the platform possesses the assets but cannot dispose of them because somebody else claims ownership of them.
   
4. loans where the value of the asset was only a fraction of the value stated in the loan documentation
5. loans where the borrower claims the loan agreement is unenforceable

I've seen plenty of platforms that were flavour of the month today, but 18 months later were in administration. The thing they have in common is that the run down plan that the regulations required them to have were worthless, and that administrators are running up huge bills trying to sort out the resulting mess.

Bridging finance may be the lower risk end of the P2P market, but it only makes up a small % of the marketplace. P2P is definitely not a place for beginers, or people with shallow pockets.

One shouldn't invest more than 10% in P2P? Shame you didn't mention that in your original post.

Sorry you have had a bad experience with P2P. I have been in P2P for around 6 years and have only had a positive experience and so I would recommend it. Invest from £100. Not all P2P is the same and there are firms I would avoid. There are firms I have invested with previously which I now would not recommend. This is because their operating model has changed. I have not lost any money. It is important to understand how the platform works and diversify. Presumably if you've been investing for 15 years your experiences haven't been all that catastrophic.