P2P Guide

37 P2P IN ACTION: LENDER CASE STUDIES Considering later life Client in 40s looking for a kick start to later life saving, setting aside a portion for higher yield opportunities with automatic reinvestment. SIPP (Self Invested Personal Pension) Max is a pharmacist satisfied with his efforts at saving so far but concerned that poor market performance could impact his final pension pot He discusses this with his adviser and together they agree to open an account with a P2P aggregator platform. The aim is to achieve a return of 6%-7% per year and the plan is to keep growing this portfolio alongside the SIPP as a diversifier. Max then invests a small amount each month across a diversified range of P2P loans originated by several platforms and covering several different types of underlying borrower. 3 P2P property Approaching retirement Clients in their 60s looking to reduce their exposure to equities, while maximising their returns in the last years that they are earning. John and Joan are in their 60s and both semi-retired, working as independent consultants in their respective industries, considering full retirement for the first time Their adviser recommends that they invest in P2P property, rotating some of their existing portfolio out of equities and into the new asset class. PENSIONS SHARES + They need to reduce their exposure to stock market volatility. They like property as an investment as they have had success in the past, but they do not want the additional responsibilities of being a landlord or to be over exposed to one or two properties. John and Joan invest across a range of properties with different LTV ratios, looking for low to medium risk opportunities, targeting 4%-5% per annum. 4 Adviser Portal Options When their IFA sets up the investment on the adviser portal, he sets the interest to be automatically reinvested, knowing that once they retire fully, he can change this so that it is paid out as income.