Download U3A Horsley Money Matters Group

HORSLEY U3A
Money Matters Group
Joint Coordinators: Mike Gilbert and Bill Hewlett
Today
• Future meetings
• Peter Tallon will lead a discussion
on Peer-to-Peer Lending
• As time permits, discussion of items of general and
topical financial interest , including
– Which? Money: the best investment supermarkets
– Which? Money: review of personal finance software
• Brief progress report on Virtual Portfolio game
July 2014
2
Future Meetings
• August 19: Alastair Carruthers will talk on “Ways
to control your independence and care costs in
later life”
• September 16: Edward Nice, a Chartered
Financial Planner, will talk on the investment
process, portfolio construction, and tax planning
• October 21: Martin Ruscoe will talk on Credit
Unions
• Later meetings (third Tuesday of each month):
proposals for subjects, please
July 2014
3
Peer-to-Peer Lending
A discussion led by Peter Tallon
An Introduction
• Click here for Investor’s Chronicle
presentation.
July 2014
5
Comparative Returns
Source: Moneysavingexpert website
Zopa
Click Zopa
Source: Moneysavingexpert website
Ratesetter
Click ratesetter
Source: Moneysavingexpert website
Funding Circle
Click funding circle
Source: Moneysavingexpert website
Alternative Sites
• To reduce risk, spread your money around different
savings and providers
• Funding Circle, Ratesetter and Zopa are the biggest.
Along with ThinCats, LendInvest, Madiston
LendLoanInvest, Wellesley & Co*, and MarketInvoice,
they’re the only members of the trade association – and
so they obey its rules on protection.
• Others include business lender FundingKnight,
Gradurates, which lends to postgraduate students and
Assetz Capital's Lend-to-Let, where all its loans are
secured on a property, which lowers the risk and the rate
too.
Source: Moneysavingexpert website
Summary of Risks & Safeguards
• The primary risk is: not being repaid
– Each peer-to-peer site has its own way to mitigate
this risk – most work well, so that's a crucial factor to
consider when you choose a site, but
• Peer-to-peer is now regulated, but
• Your cash may not be lent straight away, and
• There's no savings safety guarantee (no £85,000)
• All trade body members are required to have insurance
to cover a site going bust
– but will it work in practice?
Source: Moneysavingexpert website
Discussion/Questions
• Led by Peter Tallon
July 2014
12
Items of topical interest
Which? Money, June 2014, research on
investment supermarkets
– these allow you to hold funds, shares, bonds
and other assets all with one company
– “a compelling choice for ‘DIY’ investors
making their own investment decisions,
without advice”
– But charges and customer service can vary
considerably, so which is the best deal?
July 2014
13
July 2014
14
July 2014
15
July 2014
16
Items of topical interest
Which? Money, June 2014, research on
personal finance software
– “the majority of users have stayed loyal to
two timeworn packages, Quicken and
Microsoft Money” both now discontinued
and not supported, and scoring lower than
Which?’s current Best Buys
– “Should I just use Microsoft Excel?” – only if
you’re an “Excel magician” and like to make
things difficult
July 2014
17
Which? Money Best Buy 1/2
• For anyone who wants to plan
You Need A Budget, £36
their future spending – looks
forward, not back
• Allows you to set financial
goals, and makes it simple to
budget
• You CANNOT track investments
or set up payment reminders
July 2014
18
Which? Money Best Buy 2/2
Moneydance, £39
• Recommended if you want to
switch from Microsoft Money
or Quicken without losing your
records
• A “seriously powerful package
aimed at dedicated users of
personal finance software”
• “Intimidating if you only want
to do basic number crunching”
Bill’s initial impression: seems like you have to import account/investment files
one at a time from Quicken or Money – very laborious if so.
July 2014
19
Virtual Portfolios
• Brief update from the team leaders
• Profits and losses?
• What we have learnt
• Continue in the same way?
• Anyone else wishing to join, contact Mike or Bill
July 2014
20
July 2014
21