July 3, 2023

My Investments Update – July 2023

Nick Making Money, Saving Money, Investing travel, events 0 Comments

Here is my latest monthly update about my investments. You can read my June 2023 Investments Update here if you like

I’ll start as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £21,044. Last month it stood at £20,419 so that is a rise of £625.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,293 compared with £3,175 a month ago, an increase of £118. Here is a screen capture showing performance since the start of this year.

This has clearly been a better month for both my Nutmeg pots. Their total value has risen by £743 or 3.15% month on month. Since the start of 2023 the net value of my Nutmeg investments has grown by £1,417 or 6.18%.

Of course, all investing is (or should be) a long-term endeavour. Over a period of years stock market investments such as those used by Nutmeg typically produce better returns than cash accounts, often by substantial margins. But there are never any guarantees, and in in the short to medium term at least, losses are always possible.

Also, as you may know, both my Nutmeg pots have quite high risk levels (9/10 main, 5/5 Smart Alpha). If you haven’t yet seen it, you might like to check out my blog post in which I looked at the performance over time of Nutmeg fully managed portfolios at every risk level from 1 to 10 . I was pretty amazed by the difference risk level makes, with higher-risk ports over almost any period of three or more years in the last ten generating significantly better overall returns. If you are investing for the long term (and you almost certainly should be) choosing a hyper-cautious low-risk level might not therefore be the smartest strategy. The one exception is if you plan to withdraw your money soon and don’t want to risk losing too much if there is a sudden downturn.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are looking for a home for your annual ISA allowance, based on my overall experience over the last seven years, they are certainly worth considering. They offer self-invested personal pensions (SIPPs) and Junior ISAs as well.

Moving on, my Assetz Exchange investments continue to generate steady returns. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my AE portfolio has generated a respectable £124.53 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 12 of ‘my’ properties are showing gains, 2 are breaking even, and the remaining 12 are showing losses. My portfolio is currently showing a net decrease in value of £15.53, meaning that overall (rental income minus capital value decrease) I am up by £109. That’s still a decent return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.

Obviously the fall in capital value of my AE investments is slightly disappointing. But it’s important to bear in mind that unless and until I choose to sell the investments in question, it is largely theoretical. The rental income, on the other hand, is real money (which in my case I have chosen to reinvest in other AE projects to further diversify my portfolio).

I also spoke to the CEO of Assetz Exchange, Peter Read, recently. He made the point that capital values on the platform simply reflect the latest price at which shares in the property concerned have changed hands on their exchange. They do not represent objective or independent valuations of the properties. If you are investing long term with AE, the annual yield from rentals is really a much more important consideration.

Peter also made the point that the current high inflation rate has actually been beneficial for Assetz Exchange investors. That is because properties on the platform generally have an annual review when rentals are increased in line with inflation. That means from the end of the financial year in April, rentals have increased in most cases by around 10%. Assetz Exchange recently published a blog post about this which is worth a read.

To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching every week. I currently have around £2,500 invested with them in 17 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than £200 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now! Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can build your own IFISA, with most loans on the platform being IFISA-eligible.

Until 31 July 2023 Kuflink are offering enhanced promotional rates of up to 9.73% (gross annual interest equivalent rate) for their Auto-Invest products (IFISA-eligible). There is limited availability for this offer and it may be withdrawn any time before 31 July 2023 if the limit is reached. For more information, click here [affiliate link].

Last year I set up an account with investment and trading platform eToro, using their popular ‘copy trader’ facility. I chose to invest $500 (then about £412) copying an experienced eToro trader called Aukie2008 (real name Mike Moest).

In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares.

As you can see from the screen capture below, my original investment of $1,022.26 is today worth $1,153.25, an overall increase of $130.99 or 12.81%. in these turbulent times I am very happy with that.

Since last month the price of my Tesla shares has risen substantially and my copy trading portfolio with Aukie2008 has also done well (though less spectacularly). My most recent investment in Oil Worldwide has risen a bit this month but it’s still slightly down on when I invested. The Oil Worldwide portfolio has just been rebalanced by eToro, so I am hoping for better things in the months ahead

You can read my full review of eToro here. You may also like to check out my more in-depth look at eToro copy trading. I also discussed thematic investing with eToro using Smart Portfolios in this recent post. The latter also reveals why I took the somewhat contrarian step of choosing the oil industry for my first thematic investment.

eToro also recently introduced the eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself recently and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here.

I had two more articles published in June on the excellent Mouthy Money website. The first was 10 Great Ways to Save Money on Amazon. Amazon is Britain’s – and the world’s – favourite online store. Prices on Amazon are generally competitive, but over the years I’ve discovered a variety of ways to ensure you get the best value for money from them. So in this article I set out my top ten tips for saving money on Amazon

My other article was Do You Need a Personal Financial Adviser? In this article I discuss the different types of financial adviser and what they do. I also revealed why – despite being a money blogger and considering myself reasonably financially savvy – I have a personal financial adviser myself.

As I’ve said before, Mouthy Money is a great resource for anyone interested in money-making and money-saving I always look forward to reading the articles by my fellow contributors. Shoestring Jane is a particular favourite and I enjoyed reading her recent article concerning how you can Save Money by Reducing Food Waste.

I also published several new posts on Pounds and Sense in June. One of these was My Short Break in Bath. Bath is, of course, a historic city on the River Avon, about 12 miles from Bristol. I went there for three days in June, the first time I had been for over 30 years. In my post I discuss the self-catering apartment where I stayed and reveal some of the things I did and saw. I also share a few top tips for visitors to Bath. The cover image shows the famous Pulteney Bridge, one of Bath’s best-known landmarks.

Also in June I published a guest post titled How to Manage Your Time and Money in Retirement. This came from my friends at Equity Release Supermarket and I thought it was very informative. I also added some thoughts of my own, as you will see.

I also published a post based on a survey of Britons’ investing habits. This addressed questions such as what are the main barriers stopping people investing and where do people get their investment advice from. I thought the results were quite eye-opening. Take a look if you haven’t already.

Finally, I wanted to highlight that the free share offers described in last month’s update are both still open if you haven’t done them yet. The opportunity to Get a Free Share Worth up to £100 with Trading 212 was reopened after closing briefly. It is now on offer till 27 July 2023.

The opportunity to Get a Free ETF Share Worth up to £200 with Wealthyhood is also still open but the terms have changed slightly. To remind you, Wealthyhood is a DIY wealth-building app aimed especially at people who are new to stock market investing. As from 1 June 2023 they changed their fee structure to make it (even) more attractive to small investors. They have now increased the minimum investment to qualify for the free share offer from £20 to £50 – but on the plus side, they guarantee that your free ETF share will be worth at least £10.

That’s all for today. I hope you’re enjoying the summer months and taking the opportunity to get out and about in our beautiful country (or further afield).

As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

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June 28, 2023

My Short Break in Bath

Nick Everything Else reviews, property, travel 6 Comments

I recently returned from a three-day break in the historic city of Bath. It was the first time in over 30 years I’d been to Bath, so it’s fair to say I was approaching it with fresh eyes!

I stayed in a one-bedroom self-catering apartment in a large multi-occupied property called Elmbrook. This was about twenty minutes’ walk from the centre of Bath. I arranged it through Booking.com. I’ll say a bit more about the apartment below.

For those who don’t know, Bath is on the River Avon, about 12 miles from Bristol. Here is a map of the area from Google Maps…

Table of Contents

Accommodation

As mentioned, I stayed in a self-catering apartment in a property called Elmbrook. This was on the Weston Road, a short but pleasant walk from the centre of Bath via the Royal Victoria Park and botanical gardens.

You can read more about where I stayed on this page of the Booking.com website (and see photos). One big attraction for me was that a reserved (and free) off-road parking space was available. In Bath – as in many popular tourist areas – finding somewhere to park can be tricky.

The apartment had a good-sized master bedroom with a comfortable double bed. It had a small but perfectly adequate bathroom with a modern power shower (though, somewhat ironically, no bath). The shower worked well and there was plenty of hot water.

The lounge was quite spacious. It was at the front of the house and had a small patio leading from it. Although I didn’t use the patio during my stay, the patio door provided a quick and convenient method for getting my luggage from and to the car! The lounge had a good-quality flat-screen TV and a DVD player with a small selection of DVDs.

The kitchen was at the back of the apartment and had all the facilities you would need or expect, including a modern electric oven and hob, microwave, toaster, fridge, sink, dishwasher, washing machine, and so forth.

The apartment had central heating on a thermostat, though as it was June I didn’t need this. It had free wifi which worked perfectly during my stay (not always the case in my experience). The location was quiet and peaceful, and I slept very well.

Finally I should say that communication from my Booking.com hosts (Nigel and Alison) was excellent. Nigel sent me detailed instructions about how to get there and how to get in (I used the key safe, though he offered to meet me in person if I preferred). They also left me a welcome letter and a basket of goodies, including a bottle of wine, muesli, milk, ground coffee, and so on. That was a kind gesture and obviously much appreciated.

Financials

As Pounds and Sense is primarily a money blog, I should say a few words about this.

I paid a total of £351 (including VAT) for my three-night visit, which works out to £117 a day. I thought that was very reasonable bearing in mind the high standard of the accommodation and the convenience of the location.

Obviously as it was self-catering no meals were included and neither was there a daily housekeeping visit. But on the plus side, I got a lot more space and facilities than I would have had at a hotel, and complete privacy throughout my stay. I’d have to admit that these days I prefer to go self-catering when possible, even if I do miss hotel breakfasts a bit!

Things to Do

I won’t give you a blow-by-blow account of everything I did on my visit. I will share some highlights and personal recommendations, though.

The first thing I did was book a ticket on the Hop On, Hop Off open-top sightseeing buses. My ticket cost me just under £20 after my over-60s discount and a small reduction for booking online. The most you will pay is £22.50, though.

A ticket allows you unlimited travel on two routes, the City Tour and the Skyline Tour. As you would expect, the City Tour takes you round all the main attractions in or near the centre, including the Royal Crescent, The Circus, Bath Abbey, the Roman Baths, Theatre Royal, and so on. You can listen to a commentary that tells you some interesting facts about Bath and its history. Earphones are provided for no extra charge, and you can choose from ten different languages (including English, naturally!). I found this a great way of getting my bearings.

The Skyline Tour takes you further afield, through some of the beautiful countryside surrounding Bath. It affords some wonderful views over the city, and you get to see a range of other interesting locations, including the university, the American museum and two National Trust parks and gardens. Again, an informative commentary is available. On both tours you can get on or off at any of the stops along the route. It’s worth noting that tickets are nominally valid for 24 hours, but I was told you can use them any time over a two-day period, which potentially makes them even better value. I definitely recommend doing this.

One ‘must see’ attraction in Bath is, of course, the stunning Roman Baths that gave the city its name (see cover photo). They aren’t especially cheap to visit (I paid the discounted price of £25 plus £5 for a guidebook), but are definitely worth it. Collect a free handset as you go in. You can then key in the code numbers displayed around the buildings to hear a commentary about what is on view in any particular area. There is loads to see, so I recommend allowing a couple of hours here at least.

Another top tip for visiting the Baths is to pre-book your ticket. I made the mistake of assuming I could just pay the admission fee and walk in, but that’s not generally the case. To manage numbers, visitors have to book a timed slot. I arrived at about midday but the earliest slot available then was 3.15. So I had to book using my mobile phone and come back later. It wasn’t a problem as there were plenty of other things I wanted to see and do – but if I was going again I’d definitely book my preferred day and time well in advance. Similar advice applies to other popular attractions in Bath, including the Jane Austen Centre and the No. 1 Royal Crescent Museum, incidentally.

Another place I especially enjoyed visiting was Bath Abbey. This church and one-time Benedictine monastery in the centre of Bath goes back to the 7th century, though it has been rebuilt several times since then. It is a fine example of Gothic Perpendicular architecture and particularly noted for its beautiful fan vaulting (see my photo below). There is an admission fee but it is relatively modest at about £6.50 (no over-60s discount, I’m afraid!).

I visited the Abbey with my old friend Jeff, who lives quite near Bath. We were lucky in that when we arrived a free tour of the Abbey was just about to begin, led by a knowledgeable voiunteer guide. We found this interesting and informative, especially when he explained about the Abbey’s new underfloor heating system, which is powered by heat from the spa water!

There are some lovely – though not especially old – stained glass windows in the Abbey, as the photo below shows. There are also some informative displays and exhibitions, along with a gift shop and (free) toilets.

Here are a few more quick hints and tips for visitors to Bath, based on my experience…

You can download an excellent free map of Bath from this website. I printed this out and found it invaluable for finding my way around.
Be sure to take a few 20p coins with you. Quite a few public conveniences require these 😮
Keep a close eye on your speed if driving around (or towards) Bath. Many of the roads have a low 20 mph limit.
There is also a low emission zone in Bath, though currently charges don’t apply to most private cars and motorbikes.
You can’t actually swim in the Roman Baths, as this is set up as a tourist attraction. There are, though, a few places you can swim in spa water, most notably the Thermae Bath Spa. Be aware this costs a minimum of £40 for a two-hour session.
As mentioned above, I highly recommend pre-booking visits to popular attractions. Not only will this guarantee admission at your preferred time, it may work out a bit cheaper as well.
But don’t miss out, either, on admiring the stunning Georgian architecture of Bath, including the famous Royal Crescent and arguably even more impressive Circus. This is something you can do for free 🙂
Something I didn’t do on this visit but would quite like to in future is a boat trip on the River Avon. There are various options here, including this one which combines a boat trip with a short walking tour.

Closing Thoughts

As you may gather, I enjoyed my short break in Bath, and am happy to recommend both the city and the accommodation where I stayed for a short break.

Bath is quite compact but there is plenty to see and do. As well as the historical sites, there are lots of charming cafes and coffee shops, and some highly regarded pubs and restaurants. But it can also be a great place to chill out, with lovely green spaces such as the Royal Victoria Park and adjacent botanical gardens (both free to visit). I shall definitely be returning again before too long!

As always, if you have any comments or questions about this post, please do leave them below. Also, if you have visited Bath yourself and have any additional tips or recommendations, I would love to hear them!

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June 12, 2023

Guest Post: How to Manage Your Time and Money in Retirement

Nick Pensions & Benefits, Everything Else guest post, retirement, property 0 Comments

Today I have a guest post that may be of interest to many readers of this blog.

It has recently been reported that nearly 100,000 retirees have returned to work due to the cost of living crisis and the realization that they need more money to live in reasonable comfort.

To help those in or nearing retirement, my friends at Equity Release Supermarket have set out some of their top tips for older people on how best to manage their finances, time, and boundaries with loved ones, to support their overall mental and physical well-being.

Many consider retirement to be the first time in their adult lives that they can relax and prioritize doing what they enjoy most.

This new-found freedom can be overwhelming, however, and establishing a new routine can take time. What’s more, as the cost of living crisis continues, those in and approaching retirement likely need to pay closer attention to their personal finances and outgoings.

Mark Gregory, Founder and CEO at Equity Release Supermarket, explains: “We speak to hundreds of over 55s each week and, for many people, the prospect of spending more time with loved ones and being able to offer support to their family is what they look forward to most. We also see how people want to use retirement as an opportunity to pursue budding interests or fulfil personal goals.

“As a result, it is important that those in and approaching this stage of their life manage both their time and money, helping to get the most from their retirement plan and budget.”

To help, the experts at Equity Release Supermarket have shared steps for retirees to keep on top of their time and finances to ultimately support their well-being and achieve their retirement goals.

Table of Contents

Set goals by creating a retirement plan

Whether retirement is a few years away or you’ve already stopped working, we recommend making a retirement plan.

Start by thinking about your long term goals, such as places you want to travel to or whether you’d be interested in learning a new skill in the future. Then, consider what day-to-day activities you enjoy doing, such as spending time with grandchildren or visiting friends, as well as tasks you want to tick off your to-do list. This could include anything from giving your garden a makeover to clearing out old items from the loft.

Mapping out your days, weeks, and even years with goals and activities that will bring you fulfilment will help you organize your priorities for retirement. You could write these goals down in a notepad or even create a vision board.

Regardless of your process, make sure your retirement plan is something you can physically refer to in the future, rather than just having all the ideas up in your head.

Check in with your budget

When it comes to planning your yearly budget, you will need to establish how much money you require for your outgoings and living costs, as well as any big expenses you have planned for retirement. This could be anything from a bucket-list travel destination to supporting a son or daughter in buying their first home.

If possible, you should also aim to create an emergency savings pot, to use for any unexpected expenses.

However, it is important to remember that just because you have set your budget, those figures are not set in stone.

There are many factors that can affect your outgoings, from the ongoing cost of living crisis to personal changes such as marriage, divorce, moving house/downsizing or serious illness. Be flexible with your budget and priorities to accommodate these changes and the impact they may have on your personal finances. You might find that you need to seek out other financial options or guidance to support both your retirement and your loved ones.

It’s also important to continually check whether the money you’ve set aside for big expenses is working for you and your well-being. You might realize that you want to spend more money on things you hadn’t planned for, such as renovating the house or going on a once-in-a-lifetime holiday – in which case, you will need to update your financial plan accordingly.

Communicate with loved ones

Although creating a clear plan for retirement is essential, you also need to be mindful that life does not follow a set path.

From your physical health and mobility to ticking off your travel plans, your goals and potential limitations in retirement will adjust over time – and that’s fine and to be expected.

As difficult as it may be to admit, it can become a burden to spend your free time exactly as planned or support loved ones as much as you hoped. In these instances, it is important to keep communicating with your loved ones and be honest with them, so they can offer you support too. This will help to alleviate any pressure you may be feeling and allow your family and friends to be more accommodating of your situation.

Take care of your physical and mental well-being

It is important to make time in retirement for activities that will aid your well-being, especially as loneliness and depression are increasingly prevalent in later life.

Without the daily company of colleagues, you need to ensure you still get chances to socialize and see friends. Whether it’s arranging a coffee catch-up or joining a new local club, there are plenty of ways to incorporate social activities into the week without spending too much money, seeing both old friends and making new ones.

You can also take up activities that will benefit your physical and mental health at the same time, such as walking or low-impact exercises such as Pilates or yoga.

Think about the future

Although retirement may have been the end goal for your working life, it doesn’t mean you should stop planning for the future.

For example, you can make financial decisions that will save time and money in the long run. This could include minimizing your monthly outgoings to pay off existing mortgages quicker, as well as potentially providing you and your loved ones with more freedom later down the line.

If you’re planning to leave an inheritance to your children or family members, it is also worth considering gifting this money instead. Money gifted through equity release [or otherwise] becomes exempt from inheritance tax, provided that the giver lives for seven years afterwards. This can be a useful strategy for those who want to offer more financial support to loved ones throughout retirement and see the positive impact of this themselves.

So there you have it, five tips for getting the most from retirement. For more information about finances in retirement, visit the Equity Release Supermarket website.

My thoughts

Thanks again to my friends at Equity Release Supermarket for a useful and thought-provoking article.

I do agree it’s important to cultivate a strong social network in retirement, both with existing friends and family and with new friends and connections.

Time and again, studies have found that older people are both mentally and physically healthier when they foster relationships with others and maintain strong social connections. By contrast, social isolation and loneliness in old age have been linked to higher risks of heart disease, obesity, depression, cognitive decline, and so on.

Staying connected is especially important if (like me) you live alone. Social groups such as U3A are inexpensive to join and offer a wide range of activities, from rambling to guitar-playing, bird-watching to music appreciation. It’s well worth checking if there is a U3A group in your area. I recently joined not one but two local U3A groups and plan to write a post about this soon.

it’s also important to pay careful attention to your finances in retirement. On the one hand, you need to watch your income and expenditure to ensure you don’t run out of money in old age. On the other hand, though, you don’t want to deprive yourself without good reason and end up leading an unnecessarily frugal existence in what should be your ‘golden years’.

If you’re unsure about your finances, it can be a good idea to have a chat with a professional financial adviser. You definitely don’t need to be super-wealthy for this. Take a look at my blog post 10 Reasons Over-50s May Need an Independent Financial Adviser for more information. Most advisers (including mine) will be happy to arrange an initial meeting free of charge and without obligation.

As always, if you have any comments or questions about this post, please do leave them below.

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June 7, 2023

New Survey Sheds Light on Britons’ Investing Habits

Nick Saving Money, Investing reviews, infographic, families 0 Comments

Today I am sharing some interesting data from my friends at HSBC regarding British people’s investing habits.

This information comes from a survey conducted last year by Sticky and Censuswide on behalf of HSBC. The survey was conducted online, with a total sample size of 2018 adults. It reveals how and why people in the UK are investing, and (very importantly) why many are not.

The research revealed that nearly two-thirds of people had some form of savings (64%), with more than one in three (36%) saying they had investments. Nearly half (47%) believed investing was a better way of achieving future financial goals in the current financial climate.

More than half of people (53%) who said they would like to invest but haven’t yet said they didn’t know how to begin. Just over 1 in 3 Brits are currently investing, so almost two-thirds are not.

Table of Contents

Saving vs Investing

Somewhat reassuringly, two-thirds of people in the survey said they currently have savings (64%) and just under three-quarters (72%) said they have enough money put away to cover three months’ living expenses despite increases in the cost of living.

The main reasons people have for saving and investing are summed up in the infographic below…

As you can see, nearly half of people in the HSBC survey (46%) didn’t have a particular goal for their saving or investing – but those who did have a target were much more likely to be saving for something long-term (37%) like a house deposit or their retirement than short-term goals like holidays or other large purchases (20%).

In general, of course, saving for short-term goals is best done through cash savings accounts – but for long-term goals, typically five years or more ahead, investing is likely to produce better overall returns.

Investment Choices

The infographic below shows the main ways people in the UK are currently investing.

As you can see, the most popular investment is stocks and shares (44%), followed by funds (25%), bonds (20%) and property (19%).

When people were asked how they’d decided to invest, the most common reason given for choosing stocks and shares was the expectation of good returns (34%). Bonds were most often seen as a “safe” investment (38%).

Meanwhile, the reason for choosing funds was more equally balanced between being seen as offering good returns (34%) and being “safe” (30%), with the same being true of property (39% good return, 35% “safe”).

Barriers to Investing

When people were asked why they hadn’t chosen to invest, the most common answer (45%) was thinking they didn’t have enough money to do so. But nearly a quarter (23%) said they didn’t know enough about how to invest, ahead of the one in five (21%) who said they would worry about losing all their money.

For those who said they were scared of losing money, the main driver of those worries was the fact that investments can go down as well as up (40%). But that was followed by concerns about the need for access to their cash – with 37% saying they might need their money at short notice, and another 30% stating that their financial situation meant they couldn’t lock away money for a long time.

Those who chose to invest in jewellery and alternatives (wine, art, whisky, etc) were the most likely to say they had done so because they had expertise in that area (25%).

Investment Knowledge

When it comes to detailed financial knowledge, more than one in three (34%) said they didn’t feel they had enough information about investing. And those who wanted more help with their financial planning were most likely to need information about where to invest (25%), followed by support on types of investments (22%), the cost of investing (20%), and which investments are more or less risky (20%).

People who said they already received some information on investing were most likely to get that from their family (17%), their bank (16%), friends (15%) and social media (15%) – all ahead of financial newspapers (13%) and financial blogs (11%).

Nearly a quarter (24%) said they’d like to receive more information about investing from their bank as the primary source of information, ahead of getting help from investors (16%), social media (13%), family (11%) and financial blogs (11%) or financial newspapers (11%).

My Thoughts

Many thanks to my friends from HSBC for allowing me to share and discuss their data and graphics.

I’m not surprised that many people are wary of investing, as the subject isn’t generally taught in schools and the huge number and variety of potential investments can be bewildering.

What I find a little more surprising (and concerning) is that many more people have investments in the form of stocks and shares (46%) rather than funds (25%). I suspect this may partly be to do with people having a few shares they acquired from the big privatizations of the past such as BT and British Gas. There may also be a number who have shares through employee share schemes. Nonetheless – as I said in this recent guest post for the popular Money Talk blog – as an investment individual shares are a lot more volatile and risky. If you are new to investing, I highly recommend starting off with a collective investment such as a tracker fund or robo-adviser platform (see below). This will give you much broader diversification, which helps mitigate the risks involved.

As I’ve said before, if you suddenly find yourself in possession of a large lump sum (perhaps through an inheritance) there is a strong case for seeking advice from a trained and experienced independent financial adviser. You might like to check out my blog post on why, despite being a money blogger and considering myself reasonably financially savvy, I still have an IFA myself.

If you just want to get started in investing, there are various low-cost and relatively low-risk options you could consider. Regular readers will know that I am a fan of the robo-adviser platform Nutmeg, with whom I have been investing since 2016. Even with the recent turmoil in the markets caused by the pandemic etc., I have made an overall return of 37 percent from my investments with them. You can read my in-depth review of Nutmeg here if you wish.

Another possibility might be the wealth-building platform Wealthyhood, which is aimed especially at novice investors. You can get started on this with as little as £20 – and right now they are offering a free ETF share worth up to £200 to new investors, which should get you off to a good start! You can see my blog post about Wealthyhood and their special offer here.

Of course, all investing carries a risk of loss, in the short- to medium-term especially. You should therefore always do your own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed.

As always, if you have any comments or questions about this post, please do leave them below.

Disclaimer: I am not a professional financial adviser and nothing in this post should be construed as personal financial advice.

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June 4, 2023

UK Bloggers Father’s Day Giveaway!

Nick Everything Else events, competitions, families, shopping 1 Comment

Summer is here, so it’s time for another exciting giveaway on Pounds and Sense. This one is themed around Father’s Day, which this year is on Sunday June 18th.

I have clubbed together with some of my fellow UK bloggers to provide a bunch of great prizes guaranteed to put a grin on any dad’s face. And the best news is, it’s entirely free to enter! The giveaway is open now and will close at 11.45 pm on Sunday June 18th.

This event has (again) been organized by Rowena Becker, who blogs at My Balancing Act. No small amount of effort has been involved in arranging and co-ordinating it, so many thanks again to Rowena for her hard work and dedication.

Without further ado, then, I’ll hand you over to Rowena to introduce the giveaway…

Table of Contents

Father’s Day Giveaway

And we’re back! This time to spoil your dad. We have a number of incredible prizes that will make his day! This is not only a giveaway but a gift guide to help you get ideas and inspiration for gifts for your dad (or other special man in your life) this Father’s Day. And for more ideas and inspirations check out these blog posts, The Ultimate Father’s Day Gift Guide and Frugal Father’s Day.

The Prizes

Treat Him Experience Box from Buyagift

Give your dad a fun and unique gift with the Treat Him Experience Box from Buyagift!

Buyagift has hand-picked the finest selection of Tasty Treat, Driving Blast and Adrenaline Adventure experiences to create the perfect gift for any man. From zorbing to supercar driving, gourmet dining to overnight stays, our lucky winner can treat their dad to a wonderful experience he will never forget!

Hoover Cordless Vacuum Cleaner with ANTI-TWIST™ (Single Battery)

Make your dad’s life easier with this incredible prize! Not only will the Hoover Cordless Vacuum Cleaner with an anti-twist and single battery, make cleaning time quicker and easier, but it’s also a practical and useful present. With a Hoover, your dad can easily keep his home clean and tidy, without much effort. It’s a thoughtful way to make his daily routine easier and hassle-free. Plus, who doesn’t love a clean and fresh home? Our lucky winner can surprise their Dad with a Hoover, and watch him become the happiest dad with the cleanest house around!

Features:

- NEW ANTI-TWIST™ floorhead

- Up to 45 Minutes of Power

- Space-saving design and stands unaided for easy storage

- Converts instantly to a handheld with 2-in-1 dusting/upholstery tool

- Lightweight and easy to use

- Exclusive 3-year warranty with this product. Only available at Hoover Direct website, hooverdirect.co.uk

Opinel Complete Picnic+ Set

The Opinel Picnic+ set is the ideal gift for busy dads who need to eat their meals on the go.

The set comes with:

- A No. 08 knife

- Two inserts (a fork and a spoon) that attach to the No. 08 knife

- A microfibre towel case that is both a storage and cleaning device

The inserts are made of stainless steel, so they are nice and sturdy and hygienic (compatible with wooden handled N°08 knives, equipped with the Virobloc safety ring marketed since 2000). We have one picnic set for our lucky winner!

Silk Route Spice Company Grinders

This gift set is undoubtedly the perfect present for your resident chef or culinary friend, especially if they love French food as much as we do. The grinders contain carefully balanced mixtures of herbs and spices hand-selected by specialist chefs to impart a taste of France to any dish of your choosing, be it your homemade soupe a l’oignon or boeuf bourguignon.

The four mixes are: Herbs de Provence, Mustard & Garlic mix, Fine Herb Seasoning and French Quatre mix. Available from Amazon and donated by Dordogne Vie.

Disclaimer: As an Amazon Associate I earn from qualifying purchases

The Bloggers

In order to bring you this incredible giveaway, some of the UK’s top bloggers got together and contributed. A massive thank you to our bloggers! Those taking part are:

How to Enter

You can enter the Giveaway by completing as many Rafflecopter widget entry options below as you like. All entries will be collected and one winner will be randomly chosen. Good luck!

a Rafflecopter giveaway

Terms and Conditions

UK entries only
The giveaway will run from 11:45am 4th June 2023 to 11.45pm 18th June 2023.
The winner will be notified by email from rowena@mybalancingact.co.uk
The winner will have 7 days to respond after which time we reserve the right to select an alternative winner.
This prize draw is in no way sponsored, endorsed or administered by, or associated with, Facebook, Instagram, Twitter, YouTube, BlogLovin or Pinterest.
Prize open to over-18s only. Age verification may be required to receive some prizes.
If any prizes are out of stock then we will do our best to find a suitable replacement but cannot guarantee it.
Anyone who unfollows before the giveaway ends or doesn’t complete the required entry action will be disqualified.
The prize is non-transferable, non-refundable, and cannot be exchanged for monetary value.
We may be using a parcel service or Royal Mail for some of the prizes and their standard compensation will apply in the event of loss or damage.
Some items may be sent directly by the supplier and we do not have responsibility if these go missing and we cannot replace them.
In the unlikely event one of the companies withdraws a prize, we cannot offer an alternative.
The winner’s name will be stated on some or all of our bloggers’ websites and announced on Twitter and other social media channels. It will also be displayed on the Rafflecopter form. By entering this prize draw you will be deemed to give your permission for this.
Please note the winner may have the same name as you, so if you see your name displayed, be aware that you are not the winner unless you have been notified by us.
The prizes won’t arrive in time for Father’s Day and there may be some delays in receiving prizes.

Good luck, and I hope a Pounds and Sense reader wins this fabulous prize bundle!

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June 1, 2023

My Investments Update: June 2023

Nick Investing events, reviews, property, crowdfunding, pensions 0 Comments

Here is my latest monthly update about my investments. You can read my May 2023 Investments Update here if you like

I’ll start as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As the screenshot below for the year to date shows, my main Nutmeg portfolio is currently valued at £20,419. Last month it stood at £20,740 so that is a fall of £321.

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,175 compared with £3,201 a month ago, a small decrease of £26. Here is a screen capture showing performance since the start of this year.

As you can see, this has been another up-and-down month for both my Nutmeg pots. Pro rata, though, my Smart Alpha portfolio has again done a bit better than my main portfolio. I am therefore tempted to switch more of my money into it, although there isn’t a massive difference in performance between them.

The net value of all my Nutmeg investments has fallen this month by £347 or 1.45% month on month. That is obviously disappointing, but both pots are still comfortably up on where they were at the start of the year. And their total value has risen by £1,781 (8.16%) since mid-October last year.

Also, as you may know, both my Nutmeg pots have quite high risk levels (9/10 main, 5/5 Smart Alpha). If you haven’t yet seen it, you might like to check out my blog post in which I looked at the performance over time of Nutmeg fully managed portfolios at every risk level from 1 to 10 . I was pretty amazed by the difference risk level makes, with higher-risk ports over almost any period of three or more years in the last ten generating significantly better overall returns. If you are investing for the long term (and you almost certainly should be) choosing a hyper-cautious low-risk level might not therefore be the smartest strategy. The one exception is if you plan to withdraw your money soon and don’t want to risk losing too much if there is a sudden downturn.

Since I opened my account, my AE portfolio has generated a respectable £117.63 in revenue from rental income. As I said in last month’s update, capital growth has slowed, though, in line with UK property values generally.

At the time of writing, 7 of ‘my’ properties are showing gains, 4 are breaking even, and the remaining 14 are showing (small) losses. My portfolio is currently showing a net decrease in value of £23.62, meaning that overall (rental income minus capital value decrease) I am up by £94.01. That’s still a decent return on my £1,000 and does illustrate the value of P2P property investments for diversifying your portfolio. And it doesn’t hurt that with Assetz Exchange most projects are socially beneficial as well.

Obviously the fall in capital value of my AE investments is a bit disappointing. But it’s important to bear in mind that unless and until I choose to sell the investments in question, it is largely theoretical. The rental income, on the other hand, is real money (which in my case I have chosen to reinvest in other AE projects to further diversify my portfolio).

Peter also made the point that the current high inflation rate has actually been beneficial for Assetz Exchange investors. That is because properties on the platform generally have an annual review when rentals are increased in line with inflation. That means from the end of the financial year in April, rentals have increased in most cases by around 10%. I don’t want to go into too much detail about this here, but it is a subject I may return to in a future blog post.

Another property platform I have investments with is Kuflink. They continue to do well, with new projects launching every week. I currently have around £2,500 invested with them in 18 different projects. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

Until 30 June 2023 Kuflink are offering enhanced promotional rates of up to 9.73% (gross annual interest equivalent rate) for their Auto-Invest products (IFISA-eligible). There is limited availability for this offer and it may be withdrawn any time before 30 June 2023 if the limit is reached. For more information, click here [affiliate link].

In January 2023 I added to this with another $500 investment in one of their thematic portfolios, Oil Worldwide. I also invested a small amount I had left over in Tesla shares. My original investment of $1,022.26 is today worth $1,093.00, an overall increase of $70.74 or 6.92%. in these turbulent times I am happy enough with that.

Since last month the price of my Tesla shares has risen and my copy trading portfolio with Aukie2008 has performed steadily. Unfortunately my most recent investment in Oil Worldwide is in the red, though. I am hoping for better things in the months ahead 🙂

eToro also recently introduced the eToro Money app. This allows you to deposit money to your eToro account without paying any currency conversion fees, saving you up to £5 for every £1,000 you deposit. You can also use the app to withdraw funds from your eToro account instantly to your bank account. I tried this myself recently and was impressed with how quickly and seamlessly it worked. You can read my blog post about eToro Money here.

I had two more articles published in May on the excellent Mouthy Money website. The first was How to Save Money With Cashback Sites. If you ever buy anything online, you can almost certainly save money by signing up with these sites, which include Quidco and Top Cashback. You can read about my experiences with them and my top tips in this article.

My other article was Equity Release – Is It Right for You? In these financially challenging times, more and more older people are turning to equity release to release money tied up in their homes. My article explains the main options and sets out a range of points to consider before doing this.

I also published a number of new posts on Pounds and Sense in May. One of these was about My Short Break in Aberdovey. This is a small town on the mid-Wales coast, between Aberystwyth and Tywyn. It was my first visit to Aberdovey and I recommend it for a chilled-out break – although (as I say in the article) I wouldn’t go there for the nightlife!

Also in May I published Get a Free Share Worth up to £100 with Trading 212. This offer is open until 8th June, so there is still time to take advantage if you haven’t already.

On a similar note, I published Get a Free ETF Share Worth up to £200 with Wealthyhood. Wealthyhood is a DIY wealth-building app aimed especially at people who are new to stock market investing. As from 1 June 2023 they changed their fee structure to make it even more attractive to small investors. It’s worth checking out, even if you only want the free share. This is an ongoing offer, but to qualify you do have to make a £20 minimum investment on the platform.

I also published an article titled Nibble Launches New Legal Strategy for investors. Nibble is a European crowdlending platform open to anyone. They are offering returns of up to 14.5% in their new Legal Strategy, which involves investing in loans that are in default and facing legal action (hence the name, of course). That is obviously higher risk, but NIbble guarantee to pay all investors in this strategy a minimum of 8% up to the maximum 14.5% depending how successful their recovery efforts prove. Average quarterly returns are currently 12.5%.

The other post I published in May was also about equity release. It’s titled Why Are People Opting for Equity Release? The article features some interesting research on why people are opting for equity release in the current economic climate, and what reasons are becoming more common. Definitely worth a look if equity release is on your radar.

One other thing I should mention is that I had an article published a couple of weeks ago in the Daily Telegraph newspaper about my investing experiences. If you read my monthly investment updates on PAS you won’t find too many surprises in it, but here’s a link anyway in case you’d like to check it out. Note that the article is behind a paywall so unless you are a Telegraph subscriber you will only be able to see the start.

Finally in May I enjoyed a short break in Yorkshire visiting my sister Liz and her family. Once again I stayed at the beautiful Hewenden MIll Cottages, between Wilsden and Cullingworth (near Haworth and ‘Bronte country’). If you’re looking for an unusual, rural-based short-break destination, Hewenden could certainly fit the bill. A photo of the old mill building (in which I stayed on a previous visit but not this time) is shown below. There is also a photo of the woodland at Hewenden in the cover image. You can read my original review of Hewenden Mill Cottages here.

That’s all for today. I hope you’re enjoying the better weather and taking the opportunity to get out and about in our beautiful country (or further afield).

As always, if you have any comments or queries, feel free to leave them below. I am always delighted to hear from PAS readers

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May 29, 2023

Why Are People Opting for Equity Release?

Nick Pensions & Benefits, Everything Else pensions, borrowing, property 0 Comments

I have discussed equity release on various occasions on Pounds and Sense, including my article Should You Use Equity Release to Unlock the Value of Your Home?

As you probably know, equity release is a method of unlocking funds tied up in your property. It is open to homeowners aged 55 and over (60 and over in the case of home reversion plans).

In recent years equity release has become increasingly popular, and even rising interest rates have done little to dampen this trend. So today I thought I would look at the main reasons people are opting for equity release. I am indebted to my colleagues from Equity Release Supermarket for providing information (based on their internal data) on the top reasons people are releasing equity, as well as which reasons are seeing the biggest increases.

The table below shows the top reasons people have been using equity release over the last six months.

Rank	Reason for equity release
1	Repay mortgage
2	Home improvements
3	Debt consolidation
4	Supplement income
5	New/second home purchase

As the table shows, repaying a mortgage is the number one reason over 55’s have released equity. The data shows that, on average, 21.1% of completed cases planned to pay off an existing mortgage with the money released.

Home improvements are the second most common reason, with an average of 17.9% of borrowers raising money for a renovation project.

Debt consolidation is the third most common reason for equity release, at a slightly lower average of 13.7%. Interestingly, when looking at the data by month, using equity release for debt consolidation peaked at 18% in December 2022.

The data also reveals which reasons for equity release have increased in popularity over the last six months, with home improvements seeing the biggest increase, growing by 7.7%.

Gifting money is becoming an increasingly popular reason to release equity too. In the last four months alone, gifting money that has been released through an equity release scheme has risen by 2%.

Mark Gregory, CEO and Founder of Equity Release Supermarket, has commented on the data:

“Equity release is available for homeowners over the age of 55 who wish to free up some of the money, tax-free, that has been built up in the equity of their home. The interest rate is fixed for life and the plan is repaid when the homeowner dies or moves into long term care.

“It is perhaps unsurprising that repaying a mortgage is the top reason for equity release. As interest rates and living costs continue to rise, borrowers will be looking for ways to reduce their monthly payments. By using an equity release scheme, such as a lifetime mortgage, to pay off your existing interest only mortgage you will no longer need to make monthly payments unless desired. This can help make monthly savings and alleviate financial pressures, especially for those who have seen their mortgage payments rise in recent months due to interest rates.

“It is interesting to see that gifting money through equity release has risen over the last six months. Money gifted through equity release becomes exempt from inheritance tax, provided that the gift giver lives for seven years afterwards. Inheritance tax can significantly reduce the amount of wealth that you may be able to pass on, so we often find that many people turn to equity release as a strategy for reducing the impact it will have on an estate.

“In this uncertain economic climate, it is more important than ever that borrowers are getting advice on what product options are available across the whole equity release market. For anyone considering equity release, we would suggest discussing your plans with one of our equity release advisers.”

My Thoughts

If you’re looking for a way to release money from your property – whether to pay off debts/mortgages, fund specific purchases, assist children or other family members, or just make later life more comfortable – equity release is certainly something you may want to consider.

The main downside is – of course – that ultimately there will be less money to pass on to your beneficiaries. All reputable providers, however, offer a no-negative-equity guarantee. They may also be able to arrange plans where a certain amount of cash is guaranteed to remain in your estate, if you so wish.

Equity release interest rates in most cases are fixed for life, so you will know from the start the liability you are taking on. Of course, the longer you remain living in your home, the larger the debt eventually payable from your estate will be.

If you think equity release may be right for you, you will need to discuss this fully with an independent adviser before proceeding. As well as Equity Release Supermarket other well-known firms in this field include Key Equity Release and Age Partnership. The Equity Release Council has a full list of members on its website.

The adviser will discuss your needs and circumstances, and – assuming they think equity release is right for you – make a recommendation from the range of products on the market. You can, of course, speak to two or more different advisers if you wish before making any final decision.

Thank you again to my colleagues at Equity Release Supermarket for their assistance with this post. As always, if you have any comments or questions, please do leave them below as usual.

You may also like to check out this in-depth guide to retirement mortgages from Over 60s Discounts.

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May 25, 2023

Get a Free ETF Share Worth Up To £200 with Wealthyhood!

Nick Making Money, Investing 4 Comments

Updated 29 February 2024

Today I’m featuring a way you can get a free ETF share worth up to £200 by signing up for a DIY wealth-building app for investors called Wealthyhood.

Wealthyhood offers a quick and easy method for even complete beginners to start investing in stocks and shares. And currently if you’re new to the platform you can get a free ETF share worth up to £200 just by signing up via any of the referral links in this post and investing at least £50. The ETF share you will get is chosen at random, but could be worth up to £200 (with a minimum value of £10). You can either keep this share or sell it (after 60 days).

For those who don’t know, ETF stands for Exchange Traded Fund. ETFs are a package of shares from a particular section of the stock market. For example, an ‘Asia Pacific ETF’ is a collection of shares from the Asia-Pacific region. ETFs are different to most investment funds in that they don’t usually have a manager running them. Instead, most ETFs are run by computers that regularly balance their portfolios automatically. This helps keep costs low, while still producing respectable returns in most cases. You can learn more about ETFs here if you wish.

Table of Contents

How to Sign Up

Signing up with Wealthyhood is pretty straightforward. Just visit the Wealthyhood website via any of the (referral) links in this post and follow the on-screen instructions to register.

You will need to indicate the type (or types) of investment you are interested in. Four broad options are available: stocks, bonds, commodities and real estate. You can choose one or more of these (personally I chose stocks). You will also be invited to indicate whether you want your investments to be global or US only (I opted for global).

You can then choose the actual stocks you want or have this done automatically for you, and indicate the level of risk you are comfortable with. I chose ‘Optimized for Portfolio Weighting’ and then clicked on ‘Create my Portfolio’.

You will then be required to provide various items of personal information, including your address, date of birth, UK National Insurance number, and so on. Once you have entered all the required details, click on ‘Complete Verification’. After a few moments your account should be verified.

In some circumstances the process may take longer. If that happens, Wealthyhood will email you once you’ve been verified.

The next (and final) step will be to deposit a minimum of £100 into your Wealthyhood account and make a minimum £100 investment within seven days. You must do this within seven days of opening your account to qualify for the free ETF share. (If for some reason you’re not bothered about the free share, you can start investing with a minimum of £20.)

Within five days you should receive your free ETF share worth up to £200 (Wealthyhood say that 95% of users get their free ETF share within 1-2 days). You should receive notification about this in the My Account section of the Wealthyhood website when you log in.

You may wish to set a calendar reminder for 60 days, since (as mentioned above) you have to leave your free ETF share in your account for this long before you can sell it and withdraw the proceeds. You can, of course, leave it invested for longer if you wish, but bear in mind that fees may be applied (see below).

What Are The Fees?

Wealthyhood compares favourably with many other share-trading and investment platforms. Deposits and withdrawals are free, and other costs are kept to a minimum.

Until recently Wealthyhood charged all investors a platform fee of £1 a month. That wasn’t excessive (in my view) but for small investors (including those just wanting to take advantage of the free share offer) it was a bit of a deterrent.

As from 1st June 2023, however, the monthly platform charge was scrapped. Instead investors in Beginner accounts (everyone starts off with one of these) pay a small ‘custody fee’ of 0.18% per annum (or 0.015% per month). That works out as an annual custody fee of £1.80 for a £1,000 investment, or just 15p a month. In addition, they have introduced an acquisition charge of 0.45% per order (e.g. £4.50 for £1,000).

These new charges work out much cheaper for investors starting with small amounts and those just signing up for the free share. If you decide to stick with the platform, however, you might in due course want to consider upgrading to the new Wealthyhood Plus plan. This offers fully commission-free investing with no charges per order and no custody fees for £2.99 a month or £35.88 a year. This is obviously not worthwhile for very-small-scale investors, but once your portfolio gets up to around £6,000 (by my calculation) you should save money this way.

How Safe is Wealthyhood?

Wealthyhood is registered in England and Wales and authorized and regulated by the Financial Conduct Authority. In addition, all clients’ funds are kept separately in segregated bank accounts which are covered by the Financial Services Compensation Scheme. So even if the company itself were to go broke, any cash in your account would be protected up to a value of £85,000.

Of course, the FSCS guarantee doesn’t apply to the value of your stocks, which can go down as well as up. All investments carry a risk of loss, although in the case of your free ETF share you can never lose any more than the original cost, which was of course zero!

Referral Scheme

Any Wealthyhood member can also refer new members. All you have to do is send them your unique referral link which can be copied from your dashboard. If they join via your link and invest a minimum of £100 (as above), both you and they will then receive one free ETF share worth up to £200 (minimum £5). There is no limit to the number of friends you can refer by this means or the number of free ETF shares you can receive.

Don’t Miss Out!

I do just want to emphasize that in order to qualify for the free ETF share, you MUST click through a special referral link such as those in this article. If you simply go straight to the Wealthyhood website and join there, you won’t receive one.

What’s more, when I was researching this article I found that several other websites who were advertising this offer didn’t have the correct, up-to-date referral links. So even if you had clicked through them and signed up, you wouldn’t have qualified for a free share. To be safe, I strongly recommend clicking through my Wealthyhood referral link. You should then see a banner like this near the top of the page.

If you don’t see this banner, you haven’t clicked through a genuine, working referral link, and sadly will not receive a free ETF share.

Bear in mind also that this offer may be withdrawn any time. If and when I hear of that I will of course amend this post. But I do therefore strongly recommend taking advantage of this offer while you can.

Final Thoughts

Although in this post I have focused mainly on the free ETF share offer, Wealthyhood is also worth considering as an investment platform for the longer term.

Its low charges (especially from 1st June 2023) mean it is well suited for people who are dipping a toe into stock market investing for the first time. By contrast, the dealing fees and commissions charged by some other platforms can make small investments prohibitively expensive.

While you can’t invest in individual company shares through Wealthyhood, a wide range of ETFs is available via the platform. If you have a particular interest in an area such as video games, healthcare or clean energy (for example) you can invest in specific ETFs that track those sectors. This facility for thematic investing is not currently available through most other robo-adviser platforms, including Nutmeg.

I also like the simple, user-friendly Wealthyhood website. This allows you to easily build a balanced portfolio covering the investment types that interest you and reflecting the level of risk you are comfortable with. You can log in to your account at any time to see how your investments are performing and make any changes you wish to your portfolio, including investing more money or withdrawing.

In conclusion, I hope this post has inspired you to consider registering with Wealthyhood to claim your free ETF share. If you do, I hope you get a valuable one! Please let me know what share you receive in a comment below. And if you like Wealthyhood you may of course wish to consider investing long term via the platform as well.

As always, any comments or questions are very welcome.

Disclosure: Posts on Pounds and Sense may include my referral links. If you click on one of these and make a purchase or perform some other defined action on the website in question, I may receive a commission for introducing you. This will not affect the price you pay or the product or service you receive. Please note also that I am not a registered financial adviser and nothing in this post should be construed as individual financial advice. Everyone should do their own ‘due diligence’ before investing and seek advice from a professional financial adviser if in any doubt how best to proceed. All investment carries a risk of loss. Past performance is not a guarantee of future returns. Capital is at risk.

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May 17, 2023

Nibble Launches New Legal Strategy for Investors

Nick Saving Money, Investing reviews 0 Comments

Regular readers of PAS will know I have a particular interest in P2P/crowdlending investment. Such platforms offer the opportunity to invest in loans to businesses or individuals and profit from the interest charged to borrowers.

With savings account interest rates still quite low, many investors are looking for better returns on their savings and investments. If that applies to you, European crowdlending platform Nibble is worth a look.

Table of Contents

What is Nibble?

Nibble is a crowdlending platform launched in 2020 by IT Smart Finance, a company with over five years’ experience developing innovative products in financial technology. They offer a range of investment products which you can read about on the Nibble website. Today I am focusing on their latest offering, called the Legal Strategy.

What is the Legal Strategy?

The Legal Strategy offers the highest potential return of all the investment options on Nibble. The loans in question are in default and facing legal action (hence the name, of course).

For investment portfolios offered through the Nibble Legal Strategy, collection and litigation management are performed by Boostr. This is a company that buys overdue loans from banks and MFOs (Multiple Facility Organizations) at auctions at a typical discount of 85%, and automates the process of extra-judicial and legal recovery.

Nibble say that thanks to the deep experience and technologies developed by Boostr, it is possible to achieve a high percentage of capital return. The company draws on more than five years of successful experience in the area of debt recovery.

The Legal Strategy terms for investors, copied from the Nibble website, are shown below.

As you can see, the Legal Strategy comes with a deposit back guarantee. This is a guarantee to return the full investment amount at the end of the investment period and a minimum yield of 8% per year. The actual yield paid will depend on how successful recovery efforts prove, so you may end up with an annual return of anywhere between 8% and 14.5%. As you will probably know, this is above the average in the collective financing industry.

The minimum investment in Nibble’s Legal Strategy is €10 (about £8.70 at current exchange rates) and the maximum is €10,000. The platform has an auto-investment tool, allowing trading to be fast and straightforward. You aren’t required to choose individual loan portions, as this is all handled by the company. You simply choose your investment strategy based on the timescale over which you wish to invest and the level of risk you are comfortable with.

What Are the Risks?

No investment is without risk, but Nibble have gone to some lengths to keep this as low as possible. You can read a detailed article on this page of the Nibble website (warning: it is quite long!).

For investors in the new Legal Strategy, your money is invested in a portfolio comprising a large number of loans. The risk is therefore controlled and managed, as if any loans prove irrecoverable they will normally be offset by others that are successfully recovered (with interest and penalties).

As stated above, the risk is shared between the investor and the platform in the form of a variable interest rate. The rate paid is calculated automatically by Nibble every 90 days based on how the loan portfolio in question is performing. So every 90 days investors receive interest of between 8% (the guaranteed minimum) and 14.5% (the maximum). The actual rates paid can therefore vary from one quarter to another. Nibble say that average payouts currently are around 12.5% (this corresponds with my own experiences to date as a Legal Strategy investor).

If, for example, you invested €1000 in the Legal Strategy over 12 months, you could expect to receive anywhere between €80 and €145 in interest over the 12 month period, along with the return of your initial capital.

This is a fixed term investment, so it may be best to avoid if you think you might need the money back urgently before the end date. However, Nibble do say that if you change your mind, you can withdraw money from your portfolio ahead of schedule. They say they will find a new investor for your portfolio for a small commission fee.

The other risk, obviously, is that the platform itself will go bust. For various reasons set out on the Nibble website this appears unlikely, but of course it’s not impossible. If that were to happen, you would not be covered by the Financial Services Compensation Scheme (FSCS) which covers deposits in registered UK savings institutions up to £85,000. Nibble say that in the worst case scenario ‘a management company will be assigned to help the investor to recover funds in accordance with the rights of claim against the borrower. In addition, there is always a reserve fund which serves as an additional “safety airbag” for the investor.’

Finally, as loans are currently all in euro, UK investors will of course have to contend with exchange rate fluctuations. These could work for you or against you.

How Do You Get Started?

If you wish to invest via Nibble, the first thing you will need to do is set up an account via the Nibble website.

As Nibble is a European operation, you will need to invest in euro and your returns will be paid in this currency. That obviously adds a layer of complication for UK residents, but there are various ways around this. If you have a UK bank account you will normally be able to make (and receive) payments in euro, but may be charged a NSTF (Non-Sterling Transaction Fee).

You could use your own bank to fund your account initially, but if you become a regular investor with Nibble you might want to use a service/account that charges lower fees. You could use a money transfer service such as Paysera or Wise (formally TransferWise). These will enable you to transfer funds between Nibble and your own bank account with (potentially) lower charges and a more favourable exchange rate.

Another option would be to open a euro account with a provider such as Starling. This will allow you to receive and make payments in both sterling and euro, again at a lower overall cost.

My Experience

I wanted to try out Nibble myself,so I set up an account with them a while ago. The process was quick and straightforward. You just click on Create Account at the top of the Nibble homepage and follow the online instructions.

You are required to complete a short verification process before opening your account. This involves taking a photo of your passport, driving licence or some other form of ID, along with a selfie. You may use your mobile phone camera for this. It all worked smoothly and seamlessly in my case, and within a couple of minutes my application had been verified and approved.

After that, it is just a matter of making your initial deposit and deciding which of the strategies you want to use. Initially I chose their Classic Strategy as a low-risk test and everything went as promised. More recently I invested €100 in the Legal Strategy. This has also been running smoothly, with interest payments credited quarterly as promised.

Closing Thoughts

If you are looking for a more exciting home for some of your cash that allows you to take advantage of the higher interest rates on offer in continental Europe, Nibble is worth checking out.

The new Legal Strategy offers the highest rate of return of all their strategies. Of course, with higher returns typically come higher risks, and you do need to be comfortable with this. It is also important to note that with the Legal Strategy rates paid may vary over the period of your investment (though with an 8% guaranteed minimum).

The website’s ease of use is another attraction, as is the fact that Nibble doesn’t impose any fees or charges on investors. You do just need to bear in mind the need to switch between pounds and euro and the importance of minimizing the costs associated with this.

As a company based in Spain, NIbble doesn’t have too many UK reviews, but those that I have seen are generally positive. On the popular independent Trustpilot website, they have 11 reviews in total, six with 5 stars (‘Great’) and three with 4 stars (‘Very Good’). There are two 1-star reviews which reduce their average somewhat. These relate to difficulties withdrawing money. Nibble have replied to both and it appears that the problems arose due to the way the banks operate rather than being any fault of Nibble themselves. It also appears that the issues were satisfactorily resolved.

Obviously, nobody should put all their money into Nibble’s Legal Strategy, but it is worth considering within a diversified savings and investments portfolio. You should also bear in mind that your money won’t be protected by the Financial Services Compensation Scheme (FSCS), which protects deposits of up to £85,000 in most UK bank accounts. Of course, P2P/crowdlending platforms in the UK are not generally covered by the FSCS either.

I will continue to report on Pounds and Sense about how my Nibble investments fare.

New! Cashback Bonus. Until 31 July 2023 Nibble are offering a 2% cashback bonus for all new investments in their Legal Strategy. Visit their website for more info.

As always, if you have any comments or questions about this post, please do leave them below.

Disclaimer: I am not a qualified independent financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and seek professional advice if unsure how best to proceed. All investing carries a risk of loss. Note also that this review includes my affiliate (referral) links, so if you click through and end up investing with Nibble, I may receive a commission for introducing you. This will not affect the price you pay or the product/service you receive.

This is a sponsored post.

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May 10, 2023

My Short Break in Aberdovey

Nick Everything Else property, travel 0 Comments

I recently returned from a three-day break in Aberdovey (Aberdyfi in Welsh). This is a small town on the mid-Wales coast. It was the first time I’d been to Aberdovey, though I’d heard good reports about it from friends.

I stayed in a two-bedroom apartment with a wonderful view across the estuary. I booked through Airbnb. I’ll say a bit more about the apartment below.

I should mention that although I travelled (and stayed) on my own, I met up with an old friend from Birmingham there. David recently lost his wife, for whom he had been caring for several years, so I thought he might appreciate a bit of company on his first solo trip away (I enjoyed his company as well, of course). David stayed at a pub/hotel called the Penhelig Arms. He liked it there, though car parking could be a bit of an issue. It appears their car park has been turned into a beer garden!

Aberdovey is about five miles south of Tywyn and 10 miles north of the university town of Aberystwyth. Here is a map of the area from Google Maps…

Table of Contents

Accommodation

As mentioned, I stayed at an Airbnb property in Aberdovey. Under Airbnb’s rules I’m not supposed to reveal exactly where it was, but the location was certainly convenient. It was opposite the main car park, beyond which was the sea. The beach was around two minutes’ walk away, and all the restaurants, cafes and shops were within easy walking distance (not that there are very many – Aberdovey is only a small place).

You can read more about where I stayed on this page of the Airbnb website (you can also read my post about booking a holiday with Airbnb here). The apartment had a good-sized master bedroom with a comfortable double bed, and a smaller second bedroom with twin bunk beds. The latter would have been okay for children but adults might find it a bit of a squeeze.

The apartment had a decent-sized bathroom with (unusually these days in my experience) a bath with a shower over it. The shower worked well and there was plenty of hot water. I did try having a bath on my last night and found the taps very stiff, though. Possibly they don’t get used very much! I reported this to the host as I thought she would want to know, but it was no big deal, obviously.

The living room had a stunning view across the estuary (see photo below). It was quite spacious and had a good quality flat-screen TV (though no DVD player). The kitchen area just off the living room had all the facilities you would need/expect, including a toaster, fridge, sink, cooker, dishwasher, and so forth.

The apartment had gas central heating. As it was April I definitely appreciated this in the evenings and early mornings. There was a main thermostat in the living room and all the radiators also had thermostatic valves.

The apartment had free wifi which worked perfectly during my stay (not always the case in my experience). Although central, the location was quiet and peaceful, and I slept very well.

Finally I should say that communication from my Airbnb host (Irene) was excellent. She sent me very detailed instructions about how to get there, where to park, local amenities, and so on. One big plus was that residents in the apartment can use a council parking permit which allows them to park in the car park opposite (and various other places in Abverdovey) free of charge at any time. I left my car in the car park opposite, which was perfect for me.

Financials

As Pounds and Sense is primarily a money blog, I should say a few words about this.

I paid a total of £480 for my three-night stay. This was made up as follows:

£150 x 3 nights = £450
Cleaning fee £30

I was charged an initial deposit of £225, with the balance of £255 taken from my card a fortnight before my visit. The total price worked out to £160 a day. Obviously that’s not cheap but I thought it was reasonable bearing in mind the high standard of the accommodation and the convenience of the location.

Things to Do

As mentioned earlier, on this break I met up with an old friend, David. We spent some of the time together and some separately, which worked out well.

On our first full day we went on the Talyllyn Railway together (see photo below). This is a heritage steam railway that runs inland from the town of Tywyn, a short drive up the coast road from Aberdovey. I last went on the Talyllyn Railway five years ago (as described in this blog post) and was very happy to do so again.

We bought all-day tickets for £25 each and went all the way up the line and back in the morning. We then had lunch (tomato soup and a bread roll, both very good) at the station cafe in Tywyn. After that we travelled part of the way down the line to Dolgoch. Here we disembarked and spent an hour exploring the picturesque woodland with its many streams and waterfalls (see photo below). We then caught the last train back to Tywyn.

On our second full day we did our own thing. I stayed in Aberdovey, had a good wander round and got to know the place a bit better. I particular recommend the Medina Coffee House (picture below), where I went for both morning coffee and afternoon tea. You can sit inside or out here and enjoy a range of drinks, meals and snacks.

David went to Machynlleth, about 15 minutes drive away. Among other things, he visited the Centre for Alternative Technology (CAT). As a retired builder he was very interested to see some of the innovative building techniques being demonstrated here and said he would like to have stayed longer.

I met up with David each evening for a main meal. On two nights we went to the Penhelig Arms where he was staying. They serve traditional pub food, but none the worse for that. Their prices were very reasonable, and David got a 20 percent discount as a hotel resident, which was a nice touch (they also extended the discount to my meals, which was kind of them).

On the other evening we bought fish, chips and mushy peas from Aberdovey’s only chip ship (photo below). This was a stone’s throw from my apartment. We took it back to the apartment and sat watching the sun set over the sea while enjoying our meals. The food, the view and the company were all excellent!

Final Thoughts

As you may gather, I enjoyed my short break in Aberdovey, and am happy to recommend both the town and the accommodation where I stayed for a short break.

Aberdovey is a lovely place to relax and chill out. With its beautiful beach it could also be a good destination for families with young children. Older children and teenagers might find the lack of other entertainments a bit limiting, however. Although it’s not my thing, there are various water sports you can do there, including sailing, canoeing, sailboarding and paddle-boarding. There are also some lovely walks (and cycle rides) from the town.

In addition, the proximity of the Talyllyn Railway, Machynlleth and Aberystwyth offers good opportunities for days out. Aberdovey definitely isn’t a place you would go for the nightlife, though – even the fish-and-chip shop closes at 8 pm!

As always, if you have any comments or questions about this post, please do leave them below.

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