Interest rates going up soon...
Discussion
Ari said:
You've actually achieved a steady 6%+ for four straight years or you've seen their web site claiming these returns?
I seem to recall when looking into this before that on closer analysis you only got the published rate of interest when your money was actually 'in play', which typically was about half the time it was invested. Take off management fees and bad debts and the real rate of return was somewhat less impressive.
That was a few years ago though, maybe things have changed?
I pushed some money their way just over a year ago. 7% after fees (and an estimate on bad debt) thus far.I seem to recall when looking into this before that on closer analysis you only got the published rate of interest when your money was actually 'in play', which typically was about half the time it was invested. Take off management fees and bad debts and the real rate of return was somewhat less impressive.
That was a few years ago though, maybe things have changed?
The vast majority of the money I pushed their way has been in play constantly.
Ari said:
youngsyr said:
Threads like these make me laugh - seems that despite being powerful company directors, most PHers' idea of sophisticated investing is an HSBC savings account. 
For all those mystified by these impossible 5% returns on investment, here you go (6%+ for the past 4 years) - no BTL involved, just a simple business loan.
https://www.fundingcircle.com/uk/investors/
You've actually achieved a steady 6%+ for four straight years or you've seen their web site claiming these returns? For all those mystified by these impossible 5% returns on investment, here you go (6%+ for the past 4 years) - no BTL involved, just a simple business loan.
https://www.fundingcircle.com/uk/investors/
I seem to recall when looking into this before that on closer analysis you only got the published rate of interest when your money was actually 'in play', which typically was about half the time it was invested. Take off management fees and bad debts and the real rate of return was somewhat less impressive.
That was a few years ago though, maybe things have changed?
In 2014 I briefly worked for a company that was offering (and achieving) 28% annual ROI. Of course, that was reasonably risky and you needed 7 figures of capital to get in on it.
5% is peanuts.
Murph7355 said:
crankedup said:
Was you surprised by the revelations regarding the co-op bank mismanagement?
Nope. sidicks said:
sidicks said:
crankedup said:
Never risk more than you can afford to lose, that is what was drummed into me when I was young. Don’t put all of your eggs into one basket. Spread your risk, know when to draw your profits. Stop / loss points on your investments and reading the ‘Investors Chronicle’. None of this excuses banks insulting rates for investors so best to put cash elsewhere. But even the Nationwide B.S ceo is getting on the fat cat pay scales now.
Where are risk free investment yields at the moment?What costs do you incur for your bank account?
Risk free, just depends how far you want to stretch the term ‘risk free’. As many have found the buy to let market has been very good in recent years, a little less so now.
Reality is risk free does not exist although less risk with good return can be found in tangible assets, imo art, wine, modern collectibles, speculative land purchase, low end classic cars all provide opportunities. Spread the risk and short/medium/long term of investments should provide a satisfying return. But your question is so open ended!
You must have asked me at least five or six times over the past ten years how much it costs the bank to run my bank account!
crankedup said:
Sorry about the absence, fell asleep over the keyboard
Risk free, just depends how far you want to stretch the term ‘risk free’. As many have found the buy to let market has been very good in recent years, a little less so now.
Reality is risk free does not exist although less risk with good return can be found in tangible assets, imo art, wine, modern collectibles, speculative land purchase, low end classic cars all provide opportunities. Spread the risk and short/medium/long term of investments should provide a satisfying return. But your question is so open ended!
There are plenty of accepted metrics regarding risk free rates - the asset classes you describe are a million miles away from that. A bank account is effectively risk free, so why do you expect a return that is greater than risk free assets?Risk free, just depends how far you want to stretch the term ‘risk free’. As many have found the buy to let market has been very good in recent years, a little less so now.
Reality is risk free does not exist although less risk with good return can be found in tangible assets, imo art, wine, modern collectibles, speculative land purchase, low end classic cars all provide opportunities. Spread the risk and short/medium/long term of investments should provide a satisfying return. But your question is so open ended!
[/quote=crankedup]
You must have asked me at least five or six times over the past ten years how much it costs the bank to run my bank account!
Ari said:
Yay, the mythical 'perfectly easy' Pistonheads 5% return on capital has appeared yet again! 
No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
The stock market. Once you have a 6 months emergency fund in cash then invest the rest in Funds/trackers . Yes, if you invest in one company/share and it goes through a rough patch your investment maybe down but if you invest In a fund that invests in 50 solid well preforming companies you can't lose longterm, ex Neil Woodford returned about 12% a year annnullised over 26 years at Invesco Perpetual or look at Terry Smith fund called Fundsmith (these are just examples). I would have a look on Hargreaves Lansdown website or venture into the finance forums and start a thread asking what to do with your savings.No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
(Also did you used to post on tzuk ?)
Edited by jonny70 on Wednesday 8th November 15:44
sidicks said:
crankedup said:
Sorry about the absence, fell asleep over the keyboard
Risk free, just depends how far you want to stretch the term ‘risk free’. As many have found the buy to let market has been very good in recent years, a little less so now.
Reality is risk free does not exist although less risk with good return can be found in tangible assets, imo art, wine, modern collectibles, speculative land purchase, low end classic cars all provide opportunities. Spread the risk and short/medium/long term of investments should provide a satisfying return. But your question is so open ended!
There are plenty of accepted metrics regarding risk free rates - the asset classes you describe are a million miles away from that. A bank account is effectively risk free, so why do you expect a return that is greater than risk free assets?Risk free, just depends how far you want to stretch the term ‘risk free’. As many have found the buy to let market has been very good in recent years, a little less so now.
Reality is risk free does not exist although less risk with good return can be found in tangible assets, imo art, wine, modern collectibles, speculative land purchase, low end classic cars all provide opportunities. Spread the risk and short/medium/long term of investments should provide a satisfying return. But your question is so open ended!
[/quote=crankedup]
You must have asked me at least five or six times over the past ten years how much it costs the bank to run my bank account!
So far as my other examples are concerned, I consider these to be good investments for reasonable returns, simple. Like I said in my post to which you responded , why invest there.
jonny70 said:
Ari said:
Yay, the mythical 'perfectly easy' Pistonheads 5% return on capital has appeared yet again!
No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
The stock market. Once you have a 6 months emergency fund in cash then invest the rest in Funds/trackers . Yes, if you invest in one company/share and it goes through a rough patch your investment maybe down but if you invest In a fund that invests in 50 solid well preforming companies you can't lose longterm, ex Neil Woodford returned about 12% a year annnullised over 26 years at Invesco Perpetual or look at Terry Smith fund called Fundsmith (these are just examples). I would have a look on Hargreaves Lansdown website or venture into the finance forums and start a thread asking what to do with your savings.No one's ever able to describe where to achieve this 'perfectly easy' 5%, but that never seems to stop it being bandied about in Internet arguments.
(Also did you used to post on tzuk ?)
Edited by jonny70 on Wednesday 8th November 15:44
BoRED S2upid said:
superkartracer said:
Be interesting to see the effect on spending just before Christmas , people will now hold onto their £ with the fear of more rises to come . So that tiny growth will move into a recession.
Great f
king news ?
You really think the average joe will stop spending over 0.25%? Nobody is really going to notice this in a month and a half when Christmas hits. Great f
king news ?Edited by superkartracer on Thursday 2nd November 13:29
superkartracer said:
BoRED S2upid said:
superkartracer said:
Be interesting to see the effect on spending just before Christmas , people will now hold onto their £ with the fear of more rises to come . So that tiny growth will move into a recession.
Great fking news ?
You really think the average joe will stop spending over 0.25%? Nobody is really going to notice this in a month and a half when Christmas hits. Great f
king news ?Edited by superkartracer on Thursday 2nd November 13:29
http://www.bbc.co.uk/news/business-42107738
superkartracer said:
And the reasons given make perfect sense. Savvy shoppers have realised that retailers bump their prices up in December so are buying early for Christmas.Overall sales still up on the previous year.
The Bank of England meet again next week.
"The Bank of England is almost certain to raise interest rates above 0.5 per cent for the first time since the financial crisis next week, according to financial markets, which put the chances of an increase at 90 per cent."
https://www.thetimes.co.uk/article/interest-rates-...
"Britons could be in for higher borrowing costs as economists expect interest rates to go up next week.
Confidence the economy has rebounded after a blip in the first three months and that wages will improve in the coming months are major factors in the potential rise.
If the Bank of England's nine policymakers do raise the base rate from 0.5 per cent to 0.75 per cent on Thursday, it would be the highest it has been since March 2009, when it was cut from one per cent to 0.5 per cent during the financial crisis."
http://www.thisismoney.co.uk/money/news/article-60...
"Bank of England expected to hike interest rates next week"
Read more at: https://www.scotsman.com/news/bank-of-england-expe...
"The Bank of England is almost certain to raise interest rates above 0.5 per cent for the first time since the financial crisis next week, according to financial markets, which put the chances of an increase at 90 per cent."
https://www.thetimes.co.uk/article/interest-rates-...
"Britons could be in for higher borrowing costs as economists expect interest rates to go up next week.
Confidence the economy has rebounded after a blip in the first three months and that wages will improve in the coming months are major factors in the potential rise.
If the Bank of England's nine policymakers do raise the base rate from 0.5 per cent to 0.75 per cent on Thursday, it would be the highest it has been since March 2009, when it was cut from one per cent to 0.5 per cent during the financial crisis."
http://www.thisismoney.co.uk/money/news/article-60...
"Bank of England expected to hike interest rates next week"
Read more at: https://www.scotsman.com/news/bank-of-england-expe...
CoolHands said:
So because wages are going to increase (in the future) they’re getting in early to snatch it away? It’s good here, innit
Directly it depends if you're a borrower or saver and there are more savers than borrowers. Indirectly a rise usually signals a more robust economy. So yes it is 'good'.fblm said:
CoolHands said:
So because wages are going to increase (in the future) they’re getting in early to snatch it away? It’s good here, innit
Directly it depends if you're a borrower or saver and there are more savers than borrowers. Indirectly a rise usually signals a more robust economy. So yes it is 'good'.egor110 said:
fblm said:
CoolHands said:
So because wages are going to increase (in the future) they’re getting in early to snatch it away? It’s good here, innit
Directly it depends if you're a borrower or saver and there are more savers than borrowers. Indirectly a rise usually signals a more robust economy. So yes it is 'good'.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff