1 year later. P2P lending pays in the 10-11% ballpark and banks give 3-4%. Same margin as 0% vs 6% from last year which is not surprising as the ratio should stay somewhat equal in the long run.
There are some P2P landing platforms that are insured. In my case, here in Portugal, there's no bank that gives more then 4%. P2P ofc is risky like any other invest that gives a nice percentage of return. In bondora case, they only give 6,75% maximum so if there is a full run by the customers, they have the money to pay to the customers, because their loans have a +/- 25.2%.
Thats relative. For example, platforms P2P like ViaInvest, for example, offers 13% interest rates, and they insurance until 20k euros, and its an regulated platform. And there are more platforms regulated which offer the same protection. And ViaInvest it's also audited by third party companies.
I took a look at bondara after your last video about the topic. Unfortunately then there was only the 4% option, i found this too risky because just like you said there are better places to go with that money
Hi Ward, you are absolutely right, 4% is way too low and so is 6.75%. For that to be interesting it would need to be well over 12% for, but still, I just much prefer holding actual parts of a company than just debt so yes, that was a nice realisation. I guess I am learning myself as I keep documenting my journey on this channel. Cheers mate.
@@SmartMoneywithKai yes 4% is nothing, I completely agree that you can better own companies and definitely with high dividends is that a way better option. And there is nothing better than to keep learning.
You said it Ward, life is a learning curve. Even Warren Buffett says he keeps learning new things even with over 90 years. He said he completely got Apple wrong as he invested way too late, yet now it's hist biggest and arguably one of his best investments. But too many people are to proud to admit they made a mistake. It's normal to make mistakes and I think we should make them to test out new things, but more importantly that we learn from it and get smarter in the process. Cheers and happy weekend☀️
Hello Kai. Thanks for your contributions. I always look forward and can't wait for your next content. I think that in the good times of the past 15 years, people are far too optimistic with stocks and no one admits how much they have lost with stocks. On the other hand in golden times when money is worth little and interest rates are high, money is fairly easy to make. At this point, I partially agree with your decision. Personally, I think that with good diversification, there is no need to jump from one to another "area". If you mentioned that so far this year you have actualls only made money from P2P, maybe you could leave part of the portfolio there. For now, I'm still in Esketit, for example, where I achieve 11-12% return including the buyback guarantee, being aware of the risk you carry in the P2P world. Bondora's 4% (and 6% unlimited) are, of course, ridiculous for today. For next year maybe not. LightYear is really attractive at the moment (I also benefit in USD thanks to your YT channel) but it will remain so high only-at max. 1-2 quarters - until then, when the Fed will start lowering interest rates. Anyway, I think that in the "bad times" (that will come) it will be difficult to exceed 4-5% interest rate, regardless of the platform and type of investment.
Hi Jurij, thanks a lot for your kind words and detailed feedback, really appreciated. I fully agree with you that diversification is important and I have nothing fundamentally against P2P lending and I totally see the appeal of it for people. It's just a personal decision and investing preference I guess, which took me a while to make. I also think that the high interest will come down eventually for platforms like Lightyear and others, but for me I am rather risk averse, despite my Bitcoin position:) So holding parts of an actual company that produces revenues & profits and pays me parts of their profits just seems the most natural fit to invest in at this stage. Plus the fact that I have real estate diversification, I think that's enough for me at this stage. Now I just want to hold my cash somewhere safe and liquid as I need it very soon for my wedding:) So I don't want to take any additional risks with it. So yes, I also don't think jumping around different investment classes is the smartest thing, but I want to be very transparent in this channel and just document my own investing journey and learning process:) Cheers
Hi. You have a point but I would not agree necessarily. Myself I was in the same position. As a GM I had a 6 figure salary yet my bank refused to give me a loan as my work contract was coming to an end less than 1 year while my I had other apartments as security they did not accept yet my waiters on much lower salaries got a loan :) So there might always be reasons but I agree it is more risky, hence the higher reward in the form of interest.
Hi Robert, that would be epic, would go for it right away, but I also feel this might be a very slow process if ever, given the fragmentation of various banks across the EU, I don't see one parter they could use to rule them all, so yeah, we might have to be very patient for that:)
Talking about one platform does not do P2P justice, there are platforms with 10%+ interest rate with insurance on investments, so you've picked maybe one of the less performing ones and gave that as an example. That is not that "smart" to me, sorry.
Hi Alex, thanks for sharing your feedback, would be interested to hear which platform offers 10%+ with insurance on investments, sounds a bit too good to be true, I guess in this case nobody would ever invest in S&P500 anymore if it was, so please do share, happy to learn from you. Cheers
@@SmartMoneywithKai you should search for P2P Empire on RUclips, he talks about many of the platforms, with performance results and details about insurance of loans. I am not praising any platform in particular, as I'm not an expert in P2P (have just a small % of investments in P2P platforms), but your conclusion is poorly documented in my opinion.
I watched his channel, it's fantastic but I am yet to find a P2P platform that has insurance, as I am sure you understand P2P is by nature risky, nobody will insure the counter party risk without doing due diligence on them, if that was the case, it's like guaranteed 10% return, which would make it one of the best investment ever, but it seems not to be the case. If you watched my video, I have also mentioned that I value flexibility and do not want to tie up my money for a year or more and face potential fall out from creditors which is happening more and more across different platforms. Bondora Go & Grow at the time was one of the few that offered instant withdrawal of funds, so I was happy with that. Now the risks of credit default is way to high even at 10%, when I can get 4% interest without lockup from with different providers, fully guaranteed. But hey, if you like the risk feel free to continue with it, but I stick with my decision and glad I got out when I did. Cheers
Thanks a lot. Ah, the German accent-it's been said to make philosophers ponder and car engines run more efficiently. 🤔🚗 But I get it, sometimes it turns financial advice into a bit of a tongue-twister. 😂 Cheers, Kai 🌟
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1 year later. P2P lending pays in the 10-11% ballpark and banks give 3-4%. Same margin as 0% vs 6% from last year which is not surprising as the ratio should stay somewhat equal in the long run.
Nice one, it definitely can still be great option for some 👌
There are some P2P landing platforms that are insured. In my case, here in Portugal, there's no bank that gives more then 4%. P2P ofc is risky like any other invest that gives a nice percentage of return. In bondora case, they only give 6,75% maximum so if there is a full run by the customers, they have the money to pay to the customers, because their loans have a +/- 25.2%.
Thats relative. For example, platforms P2P like ViaInvest, for example, offers 13% interest rates, and they insurance until 20k euros, and its an regulated platform. And there are more platforms regulated which offer the same protection. And ViaInvest it's also audited by third party companies.
I took a look at bondara after your last video about the topic. Unfortunately then there was only the 4% option, i found this too risky because just like you said there are better places to go with that money
Hi Ward, you are absolutely right, 4% is way too low and so is 6.75%. For that to be interesting it would need to be well over 12% for, but still, I just much prefer holding actual parts of a company than just debt so yes, that was a nice realisation. I guess I am learning myself as I keep documenting my journey on this channel. Cheers mate.
@@SmartMoneywithKai yes 4% is nothing, I completely agree that you can better own companies and definitely with high dividends is that a way better option. And there is nothing better than to keep learning.
You said it Ward, life is a learning curve. Even Warren Buffett says he keeps learning new things even with over 90 years. He said he completely got Apple wrong as he invested way too late, yet now it's hist biggest and arguably one of his best investments. But too many people are to proud to admit they made a mistake. It's normal to make mistakes and I think we should make them to test out new things, but more importantly that we learn from it and get smarter in the process. Cheers and happy weekend☀️
Hello Kai. Thanks for your contributions. I always look forward and can't wait for your next content.
I think that in the good times of the past 15 years, people are far too optimistic with stocks and no one admits how much they have lost with stocks. On the other hand in golden times when money is worth little and interest rates are high, money is fairly easy to make.
At this point, I partially agree with your decision. Personally, I think that with good diversification, there is no need to jump from one to another "area". If you mentioned that so far this year you have actualls only made money from P2P, maybe you could leave part of the portfolio there. For now, I'm still in Esketit, for example, where I achieve 11-12% return including the buyback guarantee, being aware of the risk you carry in the P2P world. Bondora's 4% (and 6% unlimited) are, of course, ridiculous for today. For next year maybe not. LightYear is really attractive at the moment (I also benefit in USD thanks to your YT channel) but it will remain so high only-at max. 1-2 quarters - until then, when the Fed will start lowering interest rates.
Anyway, I think that in the "bad times" (that will come) it will be difficult to exceed 4-5% interest rate, regardless of the platform and type of investment.
Hi Jurij, thanks a lot for your kind words and detailed feedback, really appreciated. I fully agree with you that diversification is important and I have nothing fundamentally against P2P lending and I totally see the appeal of it for people. It's just a personal decision and investing preference I guess, which took me a while to make.
I also think that the high interest will come down eventually for platforms like Lightyear and others, but for me I am rather risk averse, despite my Bitcoin position:) So holding parts of an actual company that produces revenues & profits and pays me parts of their profits just seems the most natural fit to invest in at this stage. Plus the fact that I have real estate diversification, I think that's enough for me at this stage. Now I just want to hold my cash somewhere safe and liquid as I need it very soon for my wedding:) So I don't want to take any additional risks with it.
So yes, I also don't think jumping around different investment classes is the smartest thing, but I want to be very transparent in this channel and just document my own investing journey and learning process:)
Cheers
lending money to people who can't got to the bank, it takes 5 sec to understand it is a bad idea.
Hi. You have a point but I would not agree necessarily. Myself I was in the same position. As a GM I had a 6 figure salary yet my bank refused to give me a loan as my work contract was coming to an end less than 1 year while my I had other apartments as security they did not accept yet my waiters on much lower salaries got a loan :) So there might always be reasons but I agree it is more risky, hence the higher reward in the form of interest.
I'm looking forward to having the apple card but I don't see any progress for it to settle in Europe.
Hi Robert, that would be epic, would go for it right away, but I also feel this might be a very slow process if ever, given the fragmentation of various banks across the EU, I don't see one parter they could use to rule them all, so yeah, we might have to be very patient for that:)
@@SmartMoneywithKai it would be interesting to see video from you about best actual EUR deposits bank programs for EU residents
@@RedHotAmarth Thanks for the idea, will keep that in mind👌
You are smart
😉🙏
Talking about one platform does not do P2P justice, there are platforms with 10%+ interest rate with insurance on investments, so you've picked maybe one of the less performing ones and gave that as an example. That is not that "smart" to me, sorry.
Hi Alex, thanks for sharing your feedback, would be interested to hear which platform offers 10%+ with insurance on investments, sounds a bit too good to be true, I guess in this case nobody would ever invest in S&P500 anymore if it was, so please do share, happy to learn from you. Cheers
@@SmartMoneywithKai you should search for P2P Empire on RUclips, he talks about many of the platforms, with performance results and details about insurance of loans. I am not praising any platform in particular, as I'm not an expert in P2P (have just a small % of investments in P2P platforms), but your conclusion is poorly documented in my opinion.
I watched his channel, it's fantastic but I am yet to find a P2P platform that has insurance, as I am sure you understand P2P is by nature risky, nobody will insure the counter party risk without doing due diligence on them, if that was the case, it's like guaranteed 10% return, which would make it one of the best investment ever, but it seems not to be the case. If you watched my video, I have also mentioned that I value flexibility and do not want to tie up my money for a year or more and face potential fall out from creditors which is happening more and more across different platforms. Bondora Go & Grow at the time was one of the few that offered instant withdrawal of funds, so I was happy with that. Now the risks of credit default is way to high even at 10%, when I can get 4% interest without lockup from with different providers, fully guaranteed. But hey, if you like the risk feel free to continue with it, but I stick with my decision and glad I got out when I did. Cheers
@@SmartMoneywithKaiwhich providers would pay 4%?
@@elena_3871 Trade Republic for example, without lock-up period 👌
Lightyear is a wonderful option.
💯%👌
Some good info. Try to talk slower with your English please. Your accent gets in the way some of the information.
Thanks a lot. Ah, the German accent-it's been said to make philosophers ponder and car engines run more efficiently. 🤔🚗 But I get it, sometimes it turns financial advice into a bit of a tongue-twister. 😂
Cheers,
Kai 🌟
It looks sketchy from the beginning…
Hi there, what looks sketchy? Peer-to-peer lending? Not really sketchy, clearly laid out model, but definitely risky💯