Regular Saving of £500 per month

[supercommuter]

If you had £500 a month to save, medium/high risk - where would the money be going? A financial commitment has just removed itself and it is pointless the money sitting in the current account.

Currently putting a £x per month split between a couple of Vanguard funds,Hawksmoor dist fund and JPM Emerging Mrkts.

Edited by supercommuter on Monday 10th July 10:32

[egomeister]

I appreciate you said med/high risk, but an alternative would be to put it in a couple of regular saver accounts - I think 5% is still available from a hsbc/nationwide and you could get a reasonable return with no fees and FSCS guarantee on your money. Depends what kind of return you hope to achieve with the funds I guess...

[supercommuter]

egomeister said:

I appreciate you said med/high risk, but an alternative would be to put it in a couple of regular saver accounts - I think 5% is still available from a hsbc/nationwide and you could get a reasonable return with no fees and FSCS guarantee on your money. Depends what kind of return you hope to achieve with the funds I guess...

Sorry I removed the x amount for fear of sounding crass. However, I would not like to add this £500 to these funds. I would like to put the money somewhere else.

I was wondering if there was any other savings options away from the standard savings accounts etc. Property Partner was another one I have seen, but not looked at details yet.

[BoRED S2upid]

What sort of return do you expect / wish for from medium to high risk?

[supercommuter]

BoRED S2upid said:

What sort of return do you expect / wish for from medium to high risk?

~8-10%+

Is that Reasonable?

[BoRED S2upid]

supercommuter said:

~8-10%+

Is that Reasonable?

You can surely get that from funds that I'd say are relatively low risk. Most of the big name fund managers return those sorts of figures annually. High risk could return a lot more (or nothing).

[crouchingpigeon]

Diversification is key. Look to cover several different asset classes and geographical regions and this should help to keep the overall risk in the portfolio at a level that you are comfortable with. Index tracking funds will keep costs down but some actively managed funds may offer better performance to justify their extra cost.
Just bear in mind that it's widely believed there will be a correction in the markets on the horizon, as you will be saving regularly and so long as this is for the long term then some volatility and a drop in values could be beneficial to you because of pound cost averaging -

http://www.morningstar.co.uk/uk/news/62457/the-ben...

In your circumstances I would highly recommend speaking to a decent financial planner in your area.

[GT03ROB]

BoRED S2upid said:

supercommuter said:

~8-10%+

Is that Reasonable?

You can surely get that from funds that I'd say are relatively low risk. Most of the big name fund managers return those sorts of figures annually. High risk could return a lot more (or nothing).

Not consistently from low risk funds. If you base yourself on those sort of returns year in year out, be prepared to be disappointed. In recent years fair enough, but not every year & not from low risk funds. I have a fairly "high risk" portfolio & on a 10yr view, so incorporating a crash I'm looking a 9.5% annualised. A 10yr view on the FTSE all share is around 5% annualized.

[stabbed rat]

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

If you want 12-15% for the first year on the first £1000 you put down then try http://link.ratesetter.com/t9n61n2 (disclaimer - This link will give me a referral bonus if you sign up and stick your £1000 in)

On Ratesetter they give you £100 if you put £1000 or more in for minimum of a year + you get the interest earned too.

I have been getting 5% on the 5 year markets (I will incur a charge when i remove my £1000 that I invested and put it elsewhere as I will be pulling out of the 5 year lending early)

I put £1000 on Ratesetter, Got 5% interest + last month I got my £100 for investing the money for a whole year so net 15% for year 1.

I figured that 15% on the £1000 was worth breaking my investment up + it spread the risk across another platform. I put the larger amount into Assetz Captial seeing as I got a better interest rate on there.

Edited by stabbed rat on Thursday 13th July 07:28

[Hyena]

stabbed rat said:

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

If you want 12-15% for the first year on the first £1000 you put down then try http://link.ratesetter.com/t9n61n2 (disclaimer - This link will give me a referral bonus if you sign up and stick your £1000 in)

On Ratesetter they give you £100 if you put £1000 or more in for minimum of a year + you get the interest earned too.

I have been getting 5% on the 5 year markets (I will incur a charge when i remove my £1000 that I invested and put it elsewhere as I will be pulling out of the 5 year lending early)

I put £1000 on Ratesetter, Got 5% interest + last month I got my £100 for investing the money for a whole year so net 15% for year 1.

I figured that 15% on the £1000 was worth breaking my investment up + it spread the risk across another platform. I put the larger amount into Assetz Captial seeing as I got a better interest rate on there.

Edited by stabbed rat on Thursday 13th July 07:28

P2P lending is very high risk, plus has no FSCS protection. Wouldn't touch it with a barge pole.

[anonymous-user]

Hyena said:

stabbed rat said:

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

If you want 12-15% for the first year on the first £1000 you put down then try http://link.ratesetter.com/t9n61n2 (disclaimer - This link will give me a referral bonus if you sign up and stick your £1000 in)

On Ratesetter they give you £100 if you put £1000 or more in for minimum of a year + you get the interest earned too.

I have been getting 5% on the 5 year markets (I will incur a charge when i remove my £1000 that I invested and put it elsewhere as I will be pulling out of the 5 year lending early)

I put £1000 on Ratesetter, Got 5% interest + last month I got my £100 for investing the money for a whole year so net 15% for year 1.

I figured that 15% on the £1000 was worth breaking my investment up + it spread the risk across another platform. I put the larger amount into Assetz Captial seeing as I got a better interest rate on there.

Edited by stabbed rat on Thursday 13th July 07:28

P2P lending is very high risk, plus has no FSCS protection. Wouldn't touch it with a barge pole.

That's the thing isn't it, absolutely fine to mess around with £1k or something and feel like you're getting yields. Would you risk £50k, £100k? IME, it's too risky and too illiquid.

[Hyena]

terrydacktal said:

That's the thing isn't it, absolutely fine to mess around with £1k or something and feel like you're getting yields. Would you risk £50k, £100k? IME, it's too risky and too illiquid.

For 15%? No chance.

Make it 50% and I might think about it......

[ROSSinHD]

£500 split £250 in a cash savings, the ones where you can put £250 a month and earn 5% interest and then £250 into FundSmith T Accumulation Class on the Standing Order method of investing. One being a good easy access if you need to touch it albeit usually lose the interest rate and the other being a fairly decent long term investment

[stabbed rat]

terrydacktal said:

Hyena said:

stabbed rat said:

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

If you want 12-15% for the first year on the first £1000 you put down then try http://link.ratesetter.com/t9n61n2 (disclaimer - This link will give me a referral bonus if you sign up and stick your £1000 in)

On Ratesetter they give you £100 if you put £1000 or more in for minimum of a year + you get the interest earned too.

I have been getting 5% on the 5 year markets (I will incur a charge when i remove my £1000 that I invested and put it elsewhere as I will be pulling out of the 5 year lending early)

I put £1000 on Ratesetter, Got 5% interest + last month I got my £100 for investing the money for a whole year so net 15% for year 1.

I figured that 15% on the £1000 was worth breaking my investment up + it spread the risk across another platform. I put the larger amount into Assetz Captial seeing as I got a better interest rate on there.

Edited by stabbed rat on Thursday 13th July 07:28

P2P lending is very high risk, plus has no FSCS protection. Wouldn't touch it with a barge pole.

That's the thing isn't it, absolutely fine to mess around with £1k or something and feel like you're getting yields. Would you risk £50k, £100k? IME, it's too risky and too illiquid.

I cant argue your point as i have only got £4.5K in total in P2P lending as it was a toe in the water thing for me to see if i could get reasonable returns on it.

In my opinion if you're wanting 8%+ with interest rates how they currently are then you've got to expect a reasonably high level of risk. Quite a few of the P2P lending platforms now have a "provision fund" where you get a little bit less interest and they keep a pot to one side to help cover worst case scenarios, where the borrower defaults and they cant recover the whole amount from the assets. (never had to utilize this and don't want to have to so i dont know if they really do dip into it and pay out or if its just a marketing gimmick

In answer to your question would i shove 50/100K into it - No because its too high of a proportion of my savings for me to want to put into one type of investment, however the OP is only talking about £6k per year going into savings, he could get a reasonable rate of return on that and at the end of the day, whilst no one wants to lose £6k, its not the same as the £50k-100K you mentioned, he wont live or die on it.

[mikeiow]

stabbed rat said:

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

Looks interesting as a small investment....how would you go 'hands on' to head towards 8.5-9%? Looks like a set of funds that allow you to go up to 7%
Thx

[stabbed rat]

mikeiow said:

stabbed rat said:

Try https://www.assetzcapital.co.uk/ I am getting 8.5-9% on here. Not too high risk IMO, everything is secured by assets, you can go hands off for 7% and have some better security on your money or hands on for that extra 1-2% and choose your loans.

Looks interesting as a small investment....how would you go 'hands on' to head towards 8.5-9%? Looks like a set of funds that allow you to go up to 7%
Thx

If you use the "manual investment account" you can select your own loans. If you go down this route you can see the LTV rate, the % interest you will receive & what kind of security they are putting down (Property, PG's etc...) I have roughly half my investment with them in the Great British business account (i think that's what they call it) and half in the manual account. Im getting the 7% on the GBB account and 9.7% overall on the manual investment account.

The hands on part is that you look through the loan book, and decide how much to allocate to each loan you want to invest in and you can see the upcoming loans too and do the same.

[anonymous-user]

stabbed rat said:

I cant argue your point as i have only got £4.5K in total in P2P lending as it was a toe in the water thing for me to see if i could get reasonable returns on it.

In my opinion if you're wanting 8%+ with interest rates how they currently are then you've got to expect a reasonably high level of risk. Quite a few of the P2P lending platforms now have a "provision fund" where you get a little bit less interest and they keep a pot to one side to help cover worst case scenarios, where the borrower defaults and they cant recover the whole amount from the assets. (never had to utilize this and don't want to have to so i dont know if they really do dip into it and pay out or if its just a marketing gimmick

In answer to your question would i shove 50/100K into it - No because its too high of a proportion of my savings for me to want to put into one type of investment, however the OP is only talking about £6k per year going into savings, he could get a reasonable rate of return on that and at the end of the day, whilst no one wants to lose £6k, its not the same as the £50k-100K you mentioned, he wont live or die on it.

I invested a fair bit more than the OP is asking about in P2P sites like Zopa and Ratesetter and have been stung on both of them. Any gain has been totally wiped out and I would also question how liquid the money is - I still have a reasonable chunk tied up that I cannot access due to late repayments.

I used to think it was a good idea but experience now shows it's terrible.

[Phateuk]

terrydacktal said:

stabbed rat said:

I cant argue your point as i have only got £4.5K in total in P2P lending as it was a toe in the water thing for me to see if i could get reasonable returns on it.

In my opinion if you're wanting 8%+ with interest rates how they currently are then you've got to expect a reasonably high level of risk. Quite a few of the P2P lending platforms now have a "provision fund" where you get a little bit less interest and they keep a pot to one side to help cover worst case scenarios, where the borrower defaults and they cant recover the whole amount from the assets. (never had to utilize this and don't want to have to so i dont know if they really do dip into it and pay out or if its just a marketing gimmick

In answer to your question would i shove 50/100K into it - No because its too high of a proportion of my savings for me to want to put into one type of investment, however the OP is only talking about £6k per year going into savings, he could get a reasonable rate of return on that and at the end of the day, whilst no one wants to lose £6k, its not the same as the £50k-100K you mentioned, he wont live or die on it.

I invested a fair bit more than the OP is asking about in P2P sites like Zopa and Ratesetter and have been stung on both of them. Any gain has been totally wiped out and I would also question how liquid the money is - I still have a reasonable chunk tied up that I cannot access due to late repayments.

I used to think it was a good idea but experience now shows it's terrible.

What do you class as "stung"? I've had money in both zopa and ratesetter in the past and had no issues. The loans are split into such small chunks (£20?) that a couple late payment shouldn't have too much impact, unless you only put in a tiny amount...?

[Hyena]

terrydacktal said:

I invested a fair bit more than the OP is asking about in P2P sites like Zopa and Ratesetter and have been stung on both of them. Any gain has been totally wiped out and I would also question how liquid the money is - I still have a reasonable chunk tied up that I cannot access due to late repayments.

I used to think it was a good idea but experience now shows it's terrible.

Agreed. For a yield of circa 15%, the risk is terrible.

Bear in mind you could have invested in a mainstream emerging markets OEIC fund last year and achieved 40% +. Much lower risk, and with FSCS protection.

[crouchingpigeon]

ROSSinHD said:

£500 split £250 in a cash savings, the ones where you can put £250 a month and earn 5% interest and then £250 into FundSmith T Accumulation Class on the Standing Order method of investing. One being a good easy access if you need to touch it albeit usually lose the interest rate and the other being a fairly decent long term investment

Where are these accounts paying 5% on £250 per month?