Investing

Post about boosting your funds through investment. Includes both traditional and non-traditional investment opportunities.

How I lost £3000 in a day in property crowdfunding and lessons learned

How I Lost £3,000 in a Day in Property Crowdfunding (And Lessons Learned From This)

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This isn’t an easy post to write, but I like to be honest with readers about my investing failures as well as successes. So here’s the sad story of one failed investment…

How It Happened

About a week before Christmas 2020 I got a cryptic email from the property crowdfunding platform Crowdlords directing me to their website for information about one of my investments. The email didn’t give anything away, but I had a premonition it wasn’t going to be good news.

Anyway, I followed the link to the Crowdlords site and logged in. The update concerned a property development I had invested £3,000 in back in 2016. Originally this was referred to as Seven Eco-Apartments (CL Number Four), but latterly it has been described simply as Kennington Road.

There was a long, involved explanation of what had been going on with the development. But the bottom line was that it had failed completely and investors were going to lose not just some but all of their money.

At first I wasn’t entirely sure I had read this correctly, so I emailed Crowdlords for confirmation. I received a quick reply from Richard Bush, co-founder of Crowdlords. Among other things, he said:

‘Kennington Road is one of two investments (from 72 we’ve completed to date) which have suffered from a very unusual combination of factors – delays, cost overruns, lost sales due to Covid and then further delays getting back to the market only to find the values have dropped. The perfect storm, almost.’

So there it was. At a stroke I had lost £3,000. As you may imagine, I felt pretty sick about this. I have subsequently heard from other people who lost much larger (five-figure) sums on the projects concerned (I’m not sure what the other project was). But that was no consolation, of course. About the only positive thing I can say is that I have had other Crowdlords investments which did deliver the promised returns. But even so, I am well down on my investments via the platform overall.

While it’s tempting to blame Crowdlords for the losses, I accept they are not directly responsible. Clearly they – along with many other businesses – have been the victims of unique and challenging circumstances in 2020. I do, though, think their communications with investors could have been a lot better, especially when it was becoming clear that problems were mounting. While they were quick enough to notify investors about successes – and new projects requiring investment – I couldn’t help feeling that failing projects were being swept quietly under the carpet. To be fair, Crowdlords aren’t the only investment platform I have noticed this with.

I do think it would be a nice gesture if Crowdlords were to offer modest ex-gratia compensation payments from their own profits to investors who have lost all their money. Even a book token would be nice. But realistically, I will be surprised if this happens now.

Lessons Learned

So what lessons have I learned from this experience? I’ll try to sum them up below.

Be a Sceptical Investor

Perhaps I’m stating the obvious here. But when I started investing in property crowdfunding it was pretty new and I found the concept intriguing and exciting. At that point, of course, there hadn’t been any failures to take the shine off. Plus I had recently come into some money through an inheritance and was looking for interesting and profitable ways to invest it.

Looking back now, I can see that I was a bit too ready to buy into the property crowdfunding idea, and put too much faith (and money) in it. I am not saying property crowdfunding can’t work (many of my investments did pay off). Nowadays, however, I am a lot more sceptical when assessing such projects and the claims made about them by their promoters.

It’s important to remember that property crowdfunding platforms are all in business to make a profit. To put it bluntly, they make their money by persuading potential investors to part with theirs.

There is nothing automatically wrong about that – all businesses do it – but it’s essential to examine any potential investment carefully and objectively before opening your wallet. That includes ensuring you understand exactly what the project entails and what the risks for investors are. Which brings me neatly to my second lesson…

Know What You are Getting Into

Property crowdfunding investment opportunities take many different forms.

In ‘traditional’ property crowdfunding a group of investors jointly purchase a property. They then receive rental income pro rata to their investment and a share of any profits when the property concerned is sold. With this type of investment, your money is effectively secured by bricks and mortar, so you are unlikely to lose your shirt. On the other hand, problems (from bad tenants to fire or flood) can arise leading to lower rental income than anticipated and/or delays in selling up. And obviously, if the value of the property doesn’t rise, you may not get all your capital back, let alone any profit on sale.

Development projects, which may launch with no more than a set of architect’s plans, are even riskier. If you invest in a development project (such as Kennington Road), while you may ultimately make a bigger profit, there is a real risk of the project failing completely for any number of reasons. In this case (as I discovered) you risk losing your entire investment sum.

Finally, there are platforms such as Kuflink that allow people to invest in loans secured against property (including bridging loans). If such loans are not repaid, the property can be sold to pay off the debt, so again you shouldn’t lose your entire investment. But even so, the legal processes involved can be time-consuming and expensive; and again you may end up losing some of your capital after all costs are paid off. And even if it doesn’t go that far, there are quite often delays in repaying loans (especially at the moment) meaning you don’t get your money back when you expect it.

So my second lesson is to be very clear what type of property crowdfunding you are investing in and what the risks are. And be especially cautious about investing in development projects, which are by nature more speculative and carry a greater risk of losing all your money.

Spread the Risk

This is of course an important principle in all investing but one that applies especially to property crowdfunding.

If you invest £3,000 in one project (as I did with Kennington Road) unless you’re Bill Gates that’s putting a lot of eggs in one basket. When I started in property crowdfunding I put as much as £5,000 into a single project. That is definitely not something I would do any more.

I am not investing as much in property crowdfunding as I did originally, but where I am still doing it I generally put no more than £100 into a single project. If I lose that money in a worst-case scenario, obviously that is not going to hit my finances nearly as hard. My approach nowadays is to have larger numbers of small investments spread across multiple platforms. This spreads the risk while still giving me control over what I invest in.

It’s interesting to note that most of the remaining property crowdfunding platforms (some have gone to the wall or are no longer serving private investors) also now offer some form of shared investment with automatic diversification. An example mentioned earlier is Kuflink, who offer an ‘Auto-Invest’ account paying up to 7% interest per year. Investments are automatically spread across a wide range of projects on the platform. If you want an easy way to diversify your property crowdfunding investments, this approach has some merit. Personally I prefer to build a diversified portfolio myself (which you can also do with Kuflink), but the automated approach is worth considering if you don’t have the time or inclination for that.

  • If you want to make use of your ISA allowance with Kuflink, you will need to open an Auto-Invest IFISA with them. You can’t create an ISA and choose your own investments, for reasons I’m not clear about.

Remember the Big Picture

Finally, it’s important always to remember that property crowdfunding is just one way of investing your money. It is also – as I have indicated – a relatively high-risk one.

So if you are going to include property crowdfunding investments in your overall portfolio, it should only comprise a fairly small part of it – I suggest no more than 10 percent. The rest of your money can then be spread across a variety of other investment types to provide good diversification. And as I have noted before, you should also have at least three months’ of income in easily accessible form in case of sudden, unexpected emergencies.

When I first started in property crowdfunding I made the mistake of putting about a third of my money into this type of investment. I am down to around 20% now, which is still (in my view) too much, but some money is tied up in long-term projects where an exit currently looks some way off. But at least hopefully there won’t be any more complete write-offs now.

Closing Thoughts

So that is the story of my failed £3,000 property crowdfunding investment and the lessons I have learned from it.

I am trying to be philosophical and remember that many of my other property crowdfunding investments have made money for me. Nonetheless, in retrospect I wish I had taken a more cautious approach initially. If I had simply put all the money into my Nutmeg stocks and shares ISA, for example, I don’t doubt that financially I would be better off overall.

Nonetheless, I do still believe in the property crowdfunding concept and am happy to have some money still in it. As I’ve said before in Pounds and Sense, property is relatively less affected by ups and downs in the economy than stocks and shares. Property investments don’t provide a method for hedging your equity investments directly, but they do offer an extra element of diversification and spreading of your financial risks. And alright, I will admit that a part of me does rather enjoy (for example) having a small amount invested in student accommodation in Leicester, my old university city 🙂

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

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

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Can You Still Make Money from Buy to Let?

Can You Still Make Money from Buy to Let?

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In the past buy-to-let seemed a relatively easy way to make money.

So long as you had the capital – or were able to borrow it – you could buy a house, put tenants in it, and collect a steady income from rental payments, along with potentially a lump-sum profit if you sold up at a higher price later on.

In recent years, though, tax and regulatory changes have made buy to let less appealing – to a point where many wonder if there is still money to be made this way. So in my post today I want to address this question.

Let’s start, though, by looking at the upside…

The Attractions of Buy to Let

As stated above, property investors get a double benefit. They enjoy rental income from tenants for as long as they own the property, and also have the potential to make a substantial lump sum profit when the time comes to sell.

A further attraction of buy to let is that your tenants effectively pay off your mortgage for you. So if, for example, you are buying a £400,000 property, you might ‘only’ need to find a deposit of £100,000. As long as your tenants’ rental payments cover your mortgage repayments (with a bit to spare), after 25 years or so the mortgage will be paid off. You will then fully own a second property, having originally paid only a quarter of the full property price. And that doesn’t even allow for the prospect of capital growth. If your property eventually sells for £600,000, you’ll have made an additional £200,000 capital gain.

  • Of course, you don’t have to borrow to fund your buy-to-let. If you already have the capital you need, investing in a buy-to-let property will provide you with a steady income while the capital value of your property (hopefully) appreciates over time.

Buy to let can also be a good way of diversifying your investment portfolio. Rental income is relatively stable, especially if you have a number of properties and tenants. And property values aren’t directly related to the state of the stock market. So while property doesn’t provide a method for hedging your stock market investments directly, it can certainly help spread the risk.

Of course, property prices took a knock in the 2008 credit crunch and subsequent recession, and more recently were affected by the pandemic (though prices generally are on an upward trajectory again now). In the longer term, though, prices have been on a strongly upward trend since the 1970s. On average, house prices have grown faster in the UK than they have in any other European country.

There’s every indication that prices will go on rising in the coming years as well. The UK currently has a serious shortage of housing, caused by various factors. To start with, the UK population is growing rapidly. This inevitably means demand for housing will go on rising, thereby driving up the price of property. According to the Office of National Statistics there will be an annual shortfall of housing in the UK of over 100,000 properties each year for the next decade. This could mean a shortfall of one million properties by 2025 if current trends continue.

Various factors have combined to boost rental demand, including immigration, more people living alone, people moving around the country for work reasons, and rising house prices stopping first-time buyers getting onto the housing ladder. The latter is obviously challenging for young people, but it’s great news for landlords whose buy-to-let properties are being let extremely quickly, while their rental income keeps increasing. All of the above means that residential property can represent a profitable and attractive investment option.

What Are The Drawbacks?

One obvious drawback for anyone wanting to invest directly in property is that it’s expensive! And if you can only afford a single property, you are taking the risk of putting all your eggs in one basket. To mention just a few things…

  • There may be periods when you don’t have tenants (voids, to use estate agent jargon). At these times your property will be costing you money rather than making it for you.
  • Bad tenants are all too real and can be a nightmare for landlords. If they don’t pay their rent, it will take time and money to evict them. And that’s not to mention the costly damage to your property a malicious – or just careless – tenant can cause.
  • There will be maintenance and repair bills to pay. If something expensive goes wrong – the roof or the central heating boiler, say – the cost of the necessary work may wipe out several months of profits for you.

In general, being a landlord – at least, a responsible one – is a hands-on role. While you can outsource some aspects of managing your property to an agency (for a fee) you will still have to keep a watchful eye on your property and tenants to ensure that your investment is protected.

A further drawback is that property isn’t a liquid asset. Yes, putting your money in bricks and mortar gives you a degree of security – but if you need to access your capital urgently this may be difficult or impossible. Even if you’re able to find a buyer quickly, if the timing is bad you could end up selling at the bottom of the market and making only a small net profit or even a loss.

And there’s more bad news for buy-to-let investors. As I said earlier, legal changes over the last couple of years have made the whole buy-to-let process more costly and burdensome. For one thing, from April 2016 anyone buying a residential buy-to-let property (or second home) has had to pay an extra 3% in Stamp Duty. In some quarters this has been dubbed the Landlord Tax.

Another major legal change has affected landlords who use mortgage loans to purchase buy-to-let properties. Before April 2017 landlords were allowed to deduct all of the interest they paid on buy-to-let mortgages from their taxable income. In effect, that meant they paid tax on their net profit from rentals rather than their turnover. The government decided to change the rules, however, arguing they gave buy-to-let landlords an unfair advantage over ordinary homeowners. So from April 2017 landlords were only allowed to claim relief on 75% of their mortgage interest. From April 2018 that dropped to 50%, and it kept falling by 25% a year until it reached 0% in 2020. It was then replaced by a less attractive tax credit equivalent to 20% of mortgage interest (which was particularly disadvantageous to higher rate taxpayers). All of this has meant that borrowing money to fund a buy-to-let has undoubtedly become less attractive (and profitable) than it used to be..

Other changes affecting landlords have come in too. For example, from April 2018 all new tenancies and renewals have had to be rated ‘E’ or better on their Energy Performance Certificates, with fines of up to £5,000 for landlords who don’t comply. Most recently built homes should qualify for this rating, but landlords of older, less energy-efficient properties may have to spend large sums bringing them up to scratch. And, of course, this all adds to the administrative burden for landlords, even if it is ultimately helping to save the planet!

One effect of all this has been that some smaller landlords have decided that buy-to-let is no longer worth the effort for them, and they are selling up and moving out of the sector.

So Is There Still Money to be Made?

My answer to this is a qualified yes.

There is definitely still money in buy to let, but it is no longer the ‘one-way bet’ it might once have appeared. You should therefore research opportunities carefully and adopt a highly professional and businesslike approach to the whole process.

A key consideration here is ‘yield’. This is the net amount (rental minus costs) you can expect to make from a buy-to-let property per year, as a percentage of the purchase price. Yield can be compared with the interest rate paid on a savings account. By this means you can assess how profitable a buy-to-let opportunity is and whether it makes sense as an investment vehicle. Clearly, if the yield is less than you could get by leaving your money in the bank, there is not much point in investing this way.

The website Totally Money recently analysed data from nearly half a million properties across England, Scotland and Wales, to calculate the buy-to-let yield for each postcode. The results were eye-opening to say the least. They found that buy-to-lets in the top 25 postcode areas were still delivering excellent returns. At the top was Liverpool, where landlords can enjoy 10% yields. Falkirk (9.51%) and Glasgow (8.71%), both in Scotland, came second and third respectively. Even postcodes at the lower end of the top 25, such as Lancaster and Aberdeen, were returning respectable yields of over 7%. All of these are clearly far better rates of return than you could get from a savings account, and you will have an asset that is hopefully increasing in value as well (see below).

Location is therefore a key consideration for any potential buy-to-let investment and must be researched thoroughly. In addition, the best area for your investment will depend on whether you intend to put your money into flats for professionals, student accommodation, family homes, etc. At the risk of stating the obvious, there needs to be solid demand in the area from would-be tenants for the type of rental property you intend to buy.

  • Of course, while it’s very important, yield/income potential isn’t the only consideration for property investors. In the longer term you will likely be hoping for capital growth as well – so ideally you should be looking to invest in properties in up-and-coming areas rather than those in long-term decline.

Getting Started

Having weighed up the pros and cons, if you do decide that buy-to-let is right for you, here are some top tips to get you started…

  • Speak to a professional independent financial adviser to discuss your plans. They will help you decide how much to invest and the level of return you should realistically be aiming for.
  • You should also speak to a mortgage broker to find out what deals are available and ideally get approval in principle for a mortgage. This means you will be well placed to make an offer as soon as you find a suitable property.
  • If there is a particular area you are considering, visit several times to get a feel for the place. That applies especially if it’s a location you’re not already familiar with. Check out the housing stock, public transport, car parking, shopping and schools, hospitals, and so on. Try to speak to other landlords in the area and local letting agents to get an idea of the size and nature of the rental market and the sorts of rentals that may be achievable. Always remember that the bottom line for any buy-to-let investor is return on capital or yield.
  • Once you find a potential property (with or without existing tenants) research it carefully as well. Obviously before buying you will need to do all the usual searches and a structural survey. As with all property sales, you can expect this process to take several months to complete.
  • Arrange insurance for your buy-to-let. Along with the usual buildings insurance, you should almost certainly have landlord insurance to protect you from financial losses associated with renting out a property. This will typically cover such things as fixtures and fittings, public and landlord’s liability, subsidence, replacement of windows, locks and keys, and so forth. It will also normally cover malicious damage caused by tenants, along with rent arrears and legal expenses (though the last two may not necessarily be included as standard). You can compare landlord insurance here.
  • To find tenants you can either go through an agency or do this yourself. Obviously going through an agency will add to your costs but can save you a lot of hassle, especially if you haven’t the time (or inclination) to be too hands-on.
  • Even if you pick your own tenants – and perhaps already know them personally – draw up a legally-binding contract. That means everyone knows where they stand from the start and can help to avoid potential unpleasantness later on.
  • Review your buy-to-let mortgage arrangements regularly and be prepared to switch to a better deal when your current one expires.
  • Ensure that your rental income is declared in a tax-efficient way and set against any allowable expenses. A good accountant will be able to help with this.
  • Your accountant will also be able to advise you about the pros and cons of running your buy-to-let through a limited company. This comes with additional costs (and paperwork) but for landlords of multiple properties in particular the tax benefits can be significant – not least because you can claim all the interest paid on your buy-to-let mortgage/s against income rather than just 20%.
  • And finally, once your first buy-to-let is up and running successfully, consider adding more. Multiple properties will give you a bigger income and will also reduce the risk inherent in putting all your eggs in one basket (as discussed earlier).

In Conclusion

If you’re considering buy to let, I hope this article will have helped you make up your mind. There is undoubtedly still money to be made this way, but you do need to choose your location and property carefully, and approach the whole process in a professional and businesslike way. That applies from the initial planning stage right through to the day-to-day – and year-by-year – management of your property.

As ever, if you have any comments or questions about this post, please do leave them below. I would also be very interested to hear from any readers who have invested in buy-to-let themselves, along with any tips (or warnings!) they would like to share.

Disclosure: this is a sponsored post.

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My Coronavirus Crisis Experience January 2021 Update

My Coronavirus Crisis Experience: January 2021 Update

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Happy New Year! Here’s hoping it’s a better one for all of us than the year just past 🙁

I shall be continuing my monthly coronavirus crisis updates in 2021, at least till we are clearly over the pandemic and something resembling normal life has resumed. Obviously I very much hope that will be sooner rather than later.

Regular readers will know I have been posting these updates since the first lockdown started in the spring of 2020 (you can read my December 2020 update here if you like).

As ever, I will begin by discussing financial matters and then life more generally over the last few weeks.

Financial

I’ll begin as usual with my Nutmeg stocks and shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, since last month’s update my main portfolio has continued on a generally upward trajectory and is currently valued at £18,886. Last month it stood at £18,008, so it has gone up by over £800 in value since then. Considering national and world events at the moment, I am more than happy with this.

Nutmeg January 2021

As you may recall, about a month ago I put £1,000 into a second Nutmeg pot to try out Nutmeg’s new Smart Alpha option. This pot has risen as high as £1,015 in value and currently stands at £1,007. Here is a screen capture showing performance to date, though obviously it is far too early to draw any conclusions from this.

Nutmeg Smart Alpha

You can see my in-depth Nutmeg review here (including a special offer for PAS readers). As a matter of interest I was recently asked by Nutmeg to contribute an article about my investing journey for their blog. I will add a link to the article here once it is published.

I had some bad financial news last month from Crowdlords, one of the property crowdfunding platforms I invested with. Three years ago I put £3,000 into a development project to build what was originally described as six eco-homes (it has lately been known more prosaically as Kennington Road). An update on the Crowdlords website revealed that due to a ‘perfect storm’ of problems caused directly or indirectly by the pandemic, the development had made a loss and investors would receive no returns. At a stroke I lost £3,000, which was (as you may imagine) a bitter pill to swallow.

I plan to write a more in-depth post about this soon, including lessons learned from the experience. But i will say two things now. One is that property development projects are inherently very risky and you shouldn’t invest in them unless it really is money you can afford to lose in a worst-case scenario. And second, while I don’t blame Crowdlords themselves for the failure of this project, I do think their communications about it could have been a lot better. I also think it would be a nice gesture if they were to offer modest ex-gratia compensation payments from their own profits to investors who have been hit hard (I know some people lost a lot more than I did). Events such as this clearly damage the reputation of property crowdfunding and mean investors are less likely to risk their money this way in future. I know I shall certainly be a lot more cautious now!

  • In fairness to Crowdlords I should add that I have had other investments on their platform which did deliver the promised returns, However, with the loss described above I am certainly down overall with them.

On a brighter note, a couple of the loans I invested in with Kuflink were repaid (with interest) last month, and I duly reinvested the money in other loans.

Kuflink is primarily a platform for investing in bridging loans, and generally these are safer than development projects such as the one mentioned above. There is still a risk of loss, of course, but as your investment is secured by bricks and mortar, it is unlikely you would lose all your money (though delays in repaying loans can and do happen). I have a diversified portfolio of loans with them paying annual interest rates of 6 to 7.5 percent. These days I generally invest a few hundred pounds per loan at most (and quite often under £100). My days of putting four-figure sums into any single property investment are definitely behind me now!

As you may be aware, I recently updated my full Kuflink review. You can read it here if you like. They recently passed the milestone of £100 million loaned, and say that since their launch no investor has lost money on the platform. I’d particularly draw your attention to their revised and more generous cashback offer for new investors. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

Moving on, my two Buy2LetCars investments are still delivering the promised monthly returns without any fuss. As I am semi-retired but don’t yet qualify for the state pension, the £450 or so I receive from them every month represents a major part of my monthly income currently.

As you may remember, investors with Buy2LetCars put up the money to finance a car for a key worker such as a nurse or police officer. They then receive 36 monthly capital repayments followed by a final balancing payment of interest and capital. If you are looking for an income-producing investment with a substantial lump sum payment after three years – and you like the idea of doing a bit of good with your money too – they are well worth checking out (and likewise if you’re a key worker looking for a lease car yourself). If you’d like to learn more, you can read my review of Buy2LetCars here and my more recent article about the company here. And here is a link to Wheels4Sure, their car-leasing website.

Finally, I am still getting a few queries about the low-key matched betting opportunity mentioned in some previous updates. I checked with my contact there and they are still accepting new members, but for reasons related to the pandemic have had to reduce their payouts slightly. New members now receive £50 a month for the first six months, reducing to £25 a month thereafter. Considering that this opportunity is cost-free, risk-free and hands-free, that’s still a pretty good deal, though 🙂

As I said above, this opportunity is based on matched betting, a sideline-earning opportunity I have been pursuing for several years myself. I was asked not to divulge too many details about it publicly, for good reasons I will explain privately to anyone who may be interested (and no, it’s not illegal!). As I said above, it doesn’t require any financial outlay, is entirely hands-off, and will provide a passive income of £50 a month for the first six months and £25 a month thereafter.

No knowledge of betting is required, and you won’t have to place any bets yourself (this is all done by the company’s clever software). You just have to set up a separate bank account for bets to go through, but running the account is entirely financed by the company. Please note though that this opportunity is only open to trustworthy people who haven’t done matched betting before and have no more than two accounts already with online bookmakers. For more info (and to receive a no-obligation invitation) drop me a line including your email address via my Contact Me page.

Personal

December was another strange month in a depressing year.

A week before Christmas I had my 65th birthday. Normally reaching that landmark would be cause for celebration, but inevitably in the circumstances it was low key. I did at least manage to meet up with a couple of old friends for a birthday tea (don’t tell Matt Hancock!). It was great to see them and they did their best to make the occasion feel special. We had some laughs and a very nice cake, but it still wasn’t anything like I might have imagined my 65th. I didn’t even have the small consolation of being able to start claiming my state pension, as I am in the cohort of people for whom the age has just been raised to 66.

Work-wise it has remained very quiet (as you probably know, I’m a semi-retired freelance writer/editor). I’ve had very little paid work since the pandemic started and was grateful to receive further financial support from the government’s SEISS scheme. This time round you had to state that your income had been directly affected by the pandemic. I did agonize a bit over this, as it begged the question of how much money I would have been earning if things were normal. I honestly don’t know the answer to that, but it seems to me that the pandemic and government counter-measures have stopped the economy in its tracks, meaning there is less work around generally. Anyway, I applied and was paid without quibble.

The main good news over the last few weeks has concerned the vaccines. Two are now approved, with the Pfizer vaccine being distributed since before Christmas and the Oxford-AZ version coming on stream this week. One benefit of turning 65 is that I have presumably moved up the pecking order to receive it.

The government appears to be pinning all its hopes on vaccines bringing this pandemic to an end by spring/summer. I hope they are right, as the next couple of months in particular look pretty grim. At the time of writing my area has just moved to Tier 4, which effectively means lockdown. So I will have little/no opportunity to see friends or relatives, no more swimming, no more trips away, and the prospect of sporting ‘lockdown hair’ again. But I am still lucky compared to many, I know.

In my blog post Surviving the Covid Winter I mentioned some plans I had for getting through the winter months. In December I started several of these. In particular, I began a couple of DIY jobs I had been putting off. One of these was redecorating the en suite. Initially I planned just to repaint one wall where the paintwork was fading. But the new paint colour didn’t match the old one, so I am now planning to repaint the rest of the room as well. As is so often the case with DIY, what appeared a small job at first has grown into a much bigger one!

I have also taken my first tentative steps in the world of video gaming (my experience prior to this had been limited to Space Invaders/Asteroids and the games bundled with MS Windows such as Solitaire). With some trepidation I signed up with the games platform Steam and downloaded Coffee Talk to my Windows laptop. This was a game I had read about some time ago and liked the sound of. Here’s a typical scene from it…

coffeetalk

Coffee Talk is actually more like an interactive movie or novel. You take the role of owner/barista at a late-night coffee shop in an alternative Seattle frequented by a mixture of human beings and mythological characters such as elves.

Mostly your customers chat with you and other customers about their lives and problems, while you prepare coffee and other drinks for them. This isn’t especially taxing, though I was quite pleased when one of the regulars, Freya, returned and asked for ‘the usual’ and I remembered what it was. It’s a pleasant enough way of spending a few hours, though I am thinking I might try something a little more ambitious next time 🙂

On the TV side, I finally finished the box-set of Deep Space Nine, which I very much enjoyed and recommend to any sci-fi fans among you. At the recommendation of my sister Annie (also a sci-fi aficionado) I have now purchased the box-set of Babylon Five. This is also set on a space station, though with quite a different vibe from DS9. With five (long) series, six full-length feature films, a spin-off series called Crusade, and various other extras, hopefully this will see me through to the end of the pandemic 😀

And for a change from sci-fi I also bought the box-set of Agatha Raisin, a tongue-in-cheek detective drama starring Ashley Jensen and set in the Cotswolds. I wasn’t sure about this at first, but after the first couple of episodes I thought it hit its stride, and I recommend it for a bit of amusing escapism with some gorgeous countryside settings. It’s only a shame that all three series are quite short.

Finally, as a Christmas present for myself I bought the DVD of Roger Waters’ Us + Them concert. This is an epic production, featuring a group of hugely talented musicians and some awesome visual effects (at one point a giant model of Battersea Power Station descends into the arena, accompanied – of course – by a flying pig).

Roger and his band play a selection of Pink Floyd classics alongside some of Roger’s solo compositions, all of which are excellent as well (The Last Refugee is particularly poignant). In the video below, though, they perform Time, one of my personal favourite Pink Floyd numbers. Check out Jess and Holly (aka Lucius) supplementing their backing vocal duties with some exuberant drumming!

So that’s it for now. I do hope you are staying safe and sane in these challenging times. Be kind to yourself and to others, and hopefully things will improve before too long. As ever, if you have any comments or questions, please do share them below.

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Top 20 Posts 2020

My Top 20 Posts of 2020

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As is customary for bloggers at this time of year, here are the top twenty posts on Pounds and Sense in 2020, based on comments, page-views and social media shares. They are in no particular order. I have excluded any posts that are no longer relevant.

I hope you will enjoy revisiting these posts, or seeing them for the first time if you are new to PAS. Don’t forget, you can always subscribe using the box on the right to be notified of new posts as soon as they appear.

All posts in the list below should open in a new tab/window when you click on the link concerned.

1. Ten Reasons Over-50s May Need an Independent Financial Adviser

2. How to Make Money From Your Old Tech

3. Save Money on Your Mortgage With Dashly

4. Twenty Ways to Make Extra Money From Home During Lockdown

5. Nutmeg Review: My Experiences With This Robo-Adviser Investment Platform

6. Why I Switched my Santander 123 Account to 123 Lite

7. How to Make Money From Affiliate Marketing

8. How to Get a Better Night’s Sleep

9. Should You Use Equity Release to Unlock the Value of Your Home?

10. What Are the Best Video Calling Tools for Older People?

11. Why I am (Still) Not a Fan of Premium Bonds

12. Get a Free Share Worth Up to £100 with Trading 212

13. Managing Your Finances and Tackling Debt – A Q & A With MoneyNerd

14. Booking a Holiday With Airbnb

15. Ten Things I Have Learned About Self-Employment Over 30 Years

16. Kuflink: My Review of This P2P Property Investment Platform

17. Looking After Your Mental Health in the Coronavirus Crisis

18. How Over-75s Can Claim Pension Credit to Keep Their Free TV Licence

19. Can You Still Make Money from Matched Betting?

20. Surviving the Covid Winter

I’ll be taking a break from blogging over the festive period (though I’ll still be around on Twitter and Facebook). I’ll therefore close by wishing you a happy, Covid-free Christmas, and for all of us a far better new year 🙂

If you have any comments or questions, of course, feel free to leave them below as usual.

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Moneynerd interview

Managing Your Finances and Tackling Debt – a Q & A with MoneyNerd

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Today I have a Q and A for you with my fellow money bloggers at MoneyNerd.

MoneyNerd is a UK personal finance blog that aims to help people learn to manage their finances and tackle debt. I asked a number of questions about personal finance and debt, and added my own thoughts as well. Our answers are also being shared separately on the MoneyNerd blog. I hope you find them interesting and informative.

What’s your number 1 financial tip?

MN: It’s hard to give advice that would apply for everyone, because everyone’s finances are different. But I would suggest ‘write it down’, as a fairly universal and important financial tip. Start with your financial goals, then write down the steps you’ll take to get there according to your budget. A lot of people have good financial intentions, but without having clear goals on paper, it’s easy to get led astray.

PAS: Agreed. I would also say, keep on top of your money. Know what’s going in and what’s going out every month, and budget accordingly. Always be on the lookout for ways you can maximize your income and minimize your expenditure. And try to put some money aside for the proverbial rainy day. Everyone should really have at least three months’ worth of income set aside in case of emergencies. Sorry, that’s at least three tips, I know!

What do you think are the main causes people find themselves in financial difficulty?

MN: I think financial difficulties are mainly caused by unforeseen life-events, such as bereavement, unemployment, and relationship breakdowns. These kinds of bumps-in-the-road can severely throw people off course, particularly if their financial situation was fragile in the first place. Unfortunately, all three of these examples have sky-rocketed due to the pandemic, and many people in the UK will be facing financial difficulties over the coming year.

PAS: Not much I can add to that. Although sometimes failing to monitor your income and expenditure closely enough can lead to debts mounting up before you realise it.

What personal finance tools do you currently use to track and manage your money?

MN: I’m quite old-school and still use spreadsheets for a lot of money-related things! There are some good apps out there though – Money Dashboard is a particularly good one.

PAS: I am the same and use spreadsheets a lot. I started with Microsoft Excel, but these days mainly use Google Sheets. As regards personal finance tools, I like Snoop [referral link], a relatively new app that helps you keep track of your finances and suggests easy ways you can make savings.

Any tips for people coming to financial management later in their lives?

MN: It might be a little harder to undo old habits and reinstate new ones if you’re approaching financial management from an older perspective. So start by setting simple goals, and work at them consistently. It’s probably worth taking a little time to assess what’s important to you right now, too: what range of outgoings does your money need to cover in later life that you didn’t need to consider before?

PAS: I am 64 and have friends in their seventies and eighties, so I have seen the sorts of problems older people can face. In particular, so many aspects of our personal finances are dealt with online now, from banking to applying for state benefits. The pandemic has probably accelerated this trend.

Many older people struggle with the technology and it’s often not as intuitive as it should be, especially for those whose eyesight isn’t as good as it once was. So I would say to any older people, try not to get left behind by technology, and ask younger friends and relatives for help when needed. Last year a group of us clubbed together and bought a friend (a retired builder) a Chromebook for his 80th birthday. He had never engaged with computers or the internet before and I must admit I was expecting him to struggle at first. However, he took to it like a duck to water, and was soon ordering tools and components online from a local builders merchant. So even old dogs can definitely learn new tricks!

2021 is going to be tough for many. Do you have any advice on how to keep things under control?

MN: I’d start with the obvious – plan as much as possible, in order to save as much as possible. This is so that when those ‘bumps-in-the-road’ come along, you have some kind of safety net, however small. Unfortunately, however, I imagine a lot of people will do everything right this year and still fall into difficulty. As and when that happens I would say be proactive in reaching out and seeking help. There are plenty of free services and helplines to reach out to, before matters spiral.

PAS: Yes, definitely. As I said earlier, everyone should have a financial safety net to tide them over when life throws you a curveball.

In my earlier career I worked as a debt counsellor at a citizens advice bureau, so I know that there is lots of help out there if you ask for it. And friends and family can be a good source of practical and emotional support too. Just don’t bury your head in the sand and pretend to everyone that nothing is wrong.

What would be your top tip for someone who is worried about a debt (or debts) they can’t repay?

MN: I have two tips: the first is don’t panic, the second is be proactive. If you can’t afford the repayments for a loan or credit card, contact the company and explain your situation. If you’re struggling to meet the repayment amounts, you may also need to look at whether a debt solution is appropriate for you. Having unaffordable debt can be a scary place in which to find yourself, but by taking action you can dissipate some of that anxiety by feeling you are doing something about the problem.

PAS: Yep. It’s worth bearing in mind also that if you have a debt you can’t repay, it’s not just your problem, it’s a problem for whomever you owe the money to as well. It is therefore in their best interests to work with you to find a method for paying down the debt.

What are some good ways of boosting your income?

MN: Ask yourself: do I own anything I could rent? A parking spot, a vehicle, a garden shed, even a room in your house if you own it. Then ask yourself: do I own anything I could sell? Old clothes, a bicycle, old furniture, anything in storage. Then finally, ask yourself what you could do with your spare time: dog-walking, Uber-driving, delivering takeaways/parcels, painting and decorating,completing online surveys, match betting, free-lancing, etc. I have a whole blog post which goes into this very topic in more detail: Making Money – Tips and Tricks.

PAS: Lots of great ideas there. Like MoneyNerd, I also have a section of my blog devoted to ideas for boosting your income. I like online surveys, with Prolific Academic (a website needing people to take part in academic research) a particular favourite. And I do matched betting as well, though not as much as I used to, as I’ve been restricted (or gubbed as we say in MB’ing) by many of the leading bookmakers!

What is the best way you can help a friend or family member who has debt problems?

MN: Honestly, I don’t think there’s a one-size fits all here. Everyone and everyone’s debt problems are different. But that seems like a cop-out! So I think showing genuine, non-judgemental support, and ensuring they have all the right resources (StepChange, CitizensAdvice, etc.) to hand are two good places to start.

PAS: I agree with this. But based on personal experience with a friend a few years ago, I would also advise thinking hard before lending them money, as this seldom solves the problem and may simply exacerbate it. With my friend, who lived alone, I found that acting as a lender to him changed the nature of our friendship, and not for the better. I also felt that by constantly bailing him out, I was allowing him to avoid addressing his money management issues. Eventually we had a difficult telephone conversation when he asked me to lend him money again and I refused. He took it better than I expected and our friendship actually returned to something more normal after that. He got his finances under better control, although I did on a couple of occasions afterwards send him supermarket vouchers to ensure he had enough to get food. I didn’t expect to be repaid for these, obviously!

If you had a sudden, unexpected windfall of £5,000, what would you do with it?

MN: Firstly I’d pay off any loans or outstanding credit card debts. Then I’d take my family out for a nice meal, and put what’s left-over into a tax-free ISA.

PAS: Paying off debts would be my first priority as well, though I am fortunate not to have any at the moment. I would put most of the rest in my Nutmeg stocks and shares ISA, and some in my Kuflink property loan investment account (from which I have had good results over the last three years) to provide a bit of diversification. Going out for a nice meal with family and friends sounds good too, although as I live in a Tier 3 area I might have to wait a while for that!

What was your best-ever financial decision, and what was your worst?!

MN: My best financial decision was investing in a tech based stocks and shares ISA which has done really well over the last 5 years, although don’t know if I’d recommend the same investing approach in the current economic climate.

On the other hand my worst financial decision was living in London for 10 years where rent and cost of living is exorbitant.

PAS: My best financial decision was probably paying off the mortgage when I had a windfall a few years ago. At a stroke one large item of monthly expenditure was gone, giving me greater financial flexibility as well as saving me a lot in future interest payments.

My worst decision was investing too much in property crowdfunding a few years ago when it was still new and exciting. I had money to invest at the time and liked the idea of owning stakes in a portfolio of properties across the UK. Some of my investments worked out but others didn’t, and I am currently sitting on a number I can’t access because the properties in question can’t be sold for one reason or another. The money is still there in bricks and mortar but I have no idea when or how I will be able to access it. That said, I do still believe in the property crowdfunding concept, but I do it a lot more selectively now.

About MoneyNerd

MoneyNerd.co.uk is a personal finance blog that was set up with one aim in mind: to help people learn how to manage their finances and tackle debt. The blog includes a variety of straight-talking articles that cover personal finance topics from credit card guides to mental well-being tips. These can help you understand exactly how financial products work, as well as what your rights are when dealing with debt. We want to offer authentic and truthful information that can help you deal with your situation, whatever that may be.

MoneyNerd

Many thanks again to MoneyNerd for their insights. Please do check out the MoneyNerd site for much more information about tackling debt and getting your finances under control.

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

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My Coronavirus Crisis Experience - December Update

My Coronavirus Crisis Experience: December Update

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December is here, so it’s time for another of my monthly coronavirus crisis updates. Regular readers will know I have been posting these updates since the first lockdown started (you can read my November update here if you like).

As ever, I will start by discussing financial matters and then life more generally over the last few weeks.

Financial

I’ll begin as usual with my Nutmeg stocks and shares ISA, as I know many of you like to follow this.

As the screenshot below shows, since last month’s update my portfolio has been on a generally upward trajectory and is currently valued at £18,008. Last month it stood at £16,955, so it has gone up over £1,000 in value since then. Considering national and world events at the moment, I am more than happy with this.

As you may recall, I recently put £1,000 into a second Nutmeg pot to try out Nutmeg’s new Smart Alpha option. It is too early to comment on this yet, but I will include an update about it next time.

You can read my in-depth Nutmeg review here (including a special offer for PAS readers).

Nutmeg ISA Dec 2020

The news hasn’t been so good with my Bricklane Property ISA, which I talked about last time. As stated in in my blog review, Bricklane – not be confused with Brickowner – is a REIT (Real Estate Investment Trust). Investors’ money is pooled to purchase properties. Rental income is then distributed to investors, who also stand to benefit if the value of the REIT goes up. Last month I was down by about £80 on my £5,000 investment, but this month – as you can see from the screen capture below – the figure is over £600.

Bricklane Dec 2020

This is obviously disappointing, though not unexpected. As I said last time, the pandemic has hit property investors hard, especially investors in large commercial properties (as are most in the Bricklane portfolios). But, in addition, the current price factors in the liability of Bricklane and its investors to assess and where necessary replace exterior cladding in some buildings in light of the Grenfell Tower tragedy. I understand that almost half of the properties in the Bricklane Regional Capitals fund (in which I invested) fall into this category.

About the only good thing to be said is that right now Bricklane’s price reflects its liabilities in the worst case scenario. In particular, it has been argued that lease-owners should not bear sole responsibility for paying for this work, as the rules were only changed after Grenfell and it isn’t the owners’ fault that some properties were built to different specifications which were regarded as perfectly safe (and legal) at the time. If the government accepts that argument, in whole or in part, then Bricklane will not have to set aside large sums of money for remedial work, and the share price will rise accordingly. I have written to my MP about this, of course 🙂

As I said last time, if I was braver and had a longer investment horizon, I might look at Bricklane as a value opportunity just now. As it is, I am leaving my money where it is but won’t be investing any more with them for the foreseeable future. I am not planning to sell up as I don’t currently need the money and that would only crystallize my losses. i just hope there will be some better news on this front soon.

I also wanted to say a word about Kuflink this month. This property loan investment platform is still performing well and returning the promised monthly dividends. A couple of loan terms have been extended due to the pandemic but interest continues to be paid and I am not unduly concerned about this. I also had a couple of investments repaid after the loans in question were paid off. So I decided to reinvest in a new six-month loan to help finance the construction of a children’s day nursery in Chorley. Some details of this project from my Kuflink dashboard are shown below…

Kuflink loan

As you can see, the interest rate being paid is 6.80%. When I invested yesterday the offer had only just launched, so it’s interesting to see it is already up to almost 42% funded now. Although the loan hasn’t gone live yet, as is Kuflink’s normal practice I will received cashback equivalent to the interest on offer until it does, so I am already making money from this loan 🙂

Incidentally, I am not saying this project has any special merit compared with others on the Kuflink platform. But I decided to invest on the basis that it looks reasonably secure with a loan-to-gross-development-value ratio of 36%. And from a more personal perspective, wherever possible I like to invest in projects that will have a socially beneficial outcome, and a new children’s day nursery certainly ticks that box.

i did want to mention as well that I recently updated my full Kuflink review. You can read it here if you like. I’d particularly like to draw your attention to their new and more generous cashback offer for new investors. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can actually earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive this!).

My two Buy2LetCars investments are still delivering the promised monthly returns without any issues. As you will remember, investors with Buy2LetCars put up the money to finance a car for a key worker such as a nurse or police officer. They then receive 36 monthly capital repayments followed by a final balancing payment of interest and capital. If you are looking for an income-producing investment with a substantial lump sum payment after three years – and you like the idea of doing a bit of good with your money too – they are well worth checking out (and likewise if you’re a key worker looking for a lease car yourself). If you’d like to learn more, you can read my review of Buy2LetCars here and my more recent article about the company here. And here is a link to Wheels4Sure, their car-leasing website.

Otherwise, there is nothing especially notable to report on the financial front this month, so let’s move on to the more personal stuff…

Personal

Since my last monthly update England has been mostly in lockdown, so I haven’t been doing anything especially exciting 🙁

I went for my latest checkup at the eye clinic at Burton Hospital in the first few days of the new lockdown. As you may remember, I was diagnosed with a perforated retina after a routine eye test at my optician’s.

I wasn’t allowed to drive, as they put drops in your eyes which blur your vision for a few hours. The trip to Burton involved a bus ride, two train journeys and a one-mile walk, so it took up a whole day. The train journeys in particular felt odd and at times almost post-apocalyptic. I was literally the only person on Lichfield Station waiting for a train to Birmingham, and had the whole carriage (and possibly train) to myself. The train to Burton was a little busier, but you do start to wonder how long the railway network can go on with such minuscule passenger numbers.

It was very quiet at the hospital too, so I was seen straight away. The doctor seemed happy with what he could see, though it’s not easy to tell when he – and everyone else – was wearing a mask. I was told I will have to go back again in January, and if everything is still okay then, they will discharge me. So I guess that’s good news, although they did say that last time as well…

During the lockdown month I aimed to go for a walk every day, and apart from a couple of days of foul weather I achieved that. I have been wearing my new music hat – described in this recent post and pictured below – and enjoying listening to my choice of music. My preferred genre is prog rock (classic and current) but I enjoy jazz and blues as well. I do just find I have to be a bit careful when walking on the narrow country lanes where I live, as with my music playing I don’t always hear cars coming up behind me. Still, I haven’t had any really close calls yet!

Music hat

I was pleased to be able to go for a swim again this week at my local David Lloyd leisure centre. It was very quiet, and all the staff, including those at reception, are now wearing masks. I suppose some people would find that reassuring. I just find it rather sad and dispiriting. Still, I really enjoyed my swim, and it was great to see a couple of members I know and exchange a few words with them. Even small social interactions like that offer a welcome morsel of normal life in these strange times.

Afterwards I ordered my usual hot drink from the centre’s coffee shop, but because I’m in a Tier 3 area I was told I couldn’t sit down to drink it. I was afraid I might be forced to take it to the freezing cold car park to consume, but was informed there was no objection to me drinking it while standing up in the centre, so long as I didn’t stay in one place for too long. You might think this is barking mad – I couldn’t possibly comment.

There has of course been some good news on the virus front in the last few weeks. As I said last time, new cases (in England anyway) are on a clear downward path. The government are of course trying to spin this as a success for lockdown, but I am sceptical about that. As I said in my November update, cases were already starting to decline pre-lockdown, so what we are seeing now is simply a continuation of that welcome trend.

It’s also interesting that the – admittedly shorter – Welsh lockdown appears to have failed totally, with cases there on the rise again. So they are now imposing even harsher restrictions, including a total ban on pubs and restaurants serving alcohol. I would therefore like to extend my sincere commiserations to Welsh readers (and especially those working in tourism or hospitality) at this time. It is a shame that the four nations of the UK couldn’t have come up with a more coherent, co-ordinated policy to combat the virus – although in my view lockdowns shouldn’t ever be a part of this due to all the collateral damage they cause.

There has been good news about vaccines this week, with the first one from Pfizer/BioNTech receiving regulatory approval in the UK and due to start rolling out next week. I am not an anti-vaxxer and will (probably) accept the vaccine when it is offered. There are, though, some reasons to be sceptical about some of the claims being made for vaccines, nicely summed up in this cautionary blog post by my old friend John ‘Platinum’ Goss. In particular, we still don’t know about any possible long-term side-effects of the vaccines. And with case numbers dropping dramatically in England, you have to wonder how much Covid will still be around in a few months’ time anyway…

In my view, this pandemic will only end when some sort of herd immunity has been achieved. That will be partly through growing numbers of people achieving immunity through contracting the virus, and in addition (hopefully) people acquiring immunity through vaccination. If that is the case, the virus will have nobody left to infect and will ultimately die out (though maybe returning occasionally in milder variants, as happens with other cold and flu viruses). That’s the best-case scenario, anyhow, and I hope it plays out that way.

  • Before leaving this topic, I would just like to include a quick shout-out for the excellent Lockdown Sceptics website. This site is updated daily and is the first thing I look at when I switch on my computer in the morning. It includes articles from a wide range of academics and other commentators, and offers a sceptical slant on official policies and announcements that is often missing in the mainstream media. Even if you don’t agree with all the views expressed, it’s well worth a read.

As for Christmas, I am expecting to have an even quieter one than usual. I don’t normally socialize a lot at this time anyway. My only remaining close family consists of my three sisters, but they are all in different parts of the country and have their own families and social circles. I have put up my lights and decorations, though, and am looking forward to receiving plenty of cards and letters. I shall also ensure I have a good stock of box-sets to watch!

Well, I guess that’s it for now. I do hope you and your loved ones are staying safe and well and looking forward to the festive season. As always, if you have any comments or questions about this post, please do leave them below.

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Nutmeg Launches Smart Alpha Portfolios

Nutmeg Launches ‘Smart Alpha’ Portfolios Powered by J.P. Morgan Asset Management

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Updated 16 November 2023.

Regular readers of PAS will know that I am a fan of the Nutmeg robo-adviser investment platform, and have a good portion of my own money in a Nutmeg stocks and shares ISA. You can read my in-depth review of Nutmeg here.

I was interested to hear that Nutmeg had launched a new investment style for their ISA, Lifetime ISA, Junior ISA, SIPP (personal pension) and general investment account customers. Previously such customers had a choice of three options: Fixed Allocation, Fully Managed and Socially Responsible.

All Nutmeg portfolios are managed by human experts, but the Fixed Allocation ones are altered annually, whereas the others are managed more actively. The Socially Responsible portfolio aims to optimize your investments according to various environmental, social and governance (ESG) factors. So it focuses on companies with a good track record and proactive strategy in such areas as water use, pollution, greenhouse gas emissions, proportion of female board members, and so on. Currently my own stocks and shares ISA is in the Fully Managed category (which was the only option available when I originally invested with Nutmeg).

Whilst all three of these investment styles remain available, a new one was launched in 2020…

Smart Alpha Portfolios

Nutmeg’s Smart Alpha portfolio range is powered by J.P. Morgan Asset Management. It includes five risk-rated portfolios, each holding between 10 and 14 passive and active exchange traded funds (ETFs). They are run by J.P. Morgan’s multi-asset solutions team, giving Nutmeg clients access to the investment giant’s experience and expertise. Writing on the Nutmeg blog, their Chief Investment Officer James McManus explained the benefits of this approach as follows:

The name recognises the intelligent way these portfolios are designed with the potential to achieve alpha (returns above the market) for our clients in three ways. 

Firstly: The use of J.P. Morgan Asset Management’s multi-asset specialists, a team with a 50-year history of investing for institutions and professionals worldwide. These specialists inform Smart Alpha portfolios’ long-term (strategic) asset allocation. 

Secondly, Smart Alpha portfolios have the ability to be flexible around this long-term asset allocation, allowing us to manage risk and capture opportunities at different stages of the market cycle.  

Thirdly: Nutmeg and J.P. Morgan Asset Management have added to these capabilities a means to make smart security selections within active exchange traded funds (ETFs). These smart selections are made based on the insights of J.P. Morgan Asset Management’s research analysts with the aim being to capture returns in excess of the market benchmark (alpha). 

How do these smart selections seek to gain alpha? The active ETFs we use allow us to move overweight in certain positions that J.P. Morgan Asset Management’s analysts expect to perform well and underweight in those positions they expect to perform poorly. This gives us the ability to move above and below market benchmark positions, delivering greater potential returns with similar risk to the overall market. 

As well as allowing Nutmeg investors to tap into the expertise of J.P. Morgan Asset Management, these portfolios are ESG integrated, meaning that (as mentioned above) environmental, social and corporate governance considerations are factored into every research and investment decision. These portfolios are therefore suitable for the growing number of investors for whom ethical considerations are particularly important.

The terms and conditions for the new Smart Alpha portfolios are copied below, alongside the other portfolio types.

Nutmeg fees Nov 2023

The above is correct as at 16 November 2023, but may have changed subsequently. Please note also that Nutmeg has also recently introduced a new ‘thematic’ investment style. More information about this can be found about this in my full Nutmeg review and on the Nutmeg website. Remember that all investing carries a risk of loss.

My Thoughts

This is undoubtedly an interesting move by Nutmeg and gives investors the opportunity to benefit from having their portfolio actively managed by a leading investment house at no extra cost. If you are a Nutmeg investor already, you can start by investing as little as £500 to test the water. You can either use ‘new money’ from your bank account or another ISA, or you can transfer money from another pot within your Nutmeg ISA account.

Personally I am very happy with the way my Nutmeg ISA has performed during this tumultuous year and don’t want to rock the boat too much. On the other hand, I am curious to see how the new Smart Alpha portfolios perform in comparison. So I have created a new £1,000 pot within my ISA and have selected Smart Alpha as the investment style. The risk level is 4/5, which roughly corresponds with the 9/10 risk level in my Fully Managed portfolio.

I will of course report back on Pounds and Sense about how my investments perform. Obviously, if my Smart Alpha pot seems to be doing significantly better than my Fully Managed one, I will switch some or all of the latter to Smart Alpha as well. It is one of the attractions of Nutmeg that you can have multiple pots within a single ISA with different investment styles and risk levels attached to them.

  • Capital at risk. Tax treatment depends on your individual circumstances and may change in the future.

In Conclusion

I am obviously a fan of Nutmeg and – as stated above – have a significant proportion of my investments with them.

Of course, I am not a qualified financial adviser and everyone should do their own ‘due diligence’ (and/or take professional advice) before deciding to invest. In addition, you shouldn’t consider investing with Nutmeg (or anyone else) unless you have paid off any interest-charging debts and have at least three months of easily-accessible savings in case of emergencies.

Based on my personal experiences with Nutmeg, though, I am happy to recommend them. They provide a simple, easy-to-understand investment platform, the customer service is excellent, and certainly in my case the results to date have exceeded my expectations.

If you have any comments or questions about this post or Nutmeg in general, please do leave them below.

PLEASE NOTE: As with all investing, your capital is at risk. Tax treatment depends on your individual circumstances and may be subject to change in the future. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. 

Note also that I am not a qualified independent financial adviser and nothing in this review should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and take professional advice if in any way uncertain how best to proceed. All investing carries a risk of loss. 

Please note also that this review includes affiliate links. If you click through and make an investment or perform some other qualifying transaction, I may receive a commission for introducing you. This will not affect in any way the terms you are offered or any fees you may be charged.

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My Coronavirus Crisis Experience - November Update

My Coronavirus Crisis Experience: November Update

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Another month, another coronavirus crisis update. Regular readers will know I have been posting these updates since the first lockdown started (you can read my October update here if you like).

As always, I will discuss what has been happening with my finances and my life generally over the last few weeks.

Financial

I’ll begin as usual with my Nutmeg stocks and shares ISA, as from feedback received I know many of you like to follow this.

As the screenshot below shows, my portfolio has been on a roller-coaster ride over the last few weeks but is currently valued at £16,955, about £500 up on last month. Considering national and world events at the moment I am very happy with this. You can read my in-depth Nutmeg review here (including a special offer for PAS readers).

Nutmeg chart Nov 2020

 

I haven’t mentioned my Bricklane Property ISA for a while, so I thought I should rectify that this month. As discussed in my blog review, Bricklane – not be confused with Brickowner – is a REIT (Real Estate Investment Trust). Investors’ money is pooled to purchase properties. Rental income is then distributed to investors, who also stand to benefit if the value of the REIT goes up. As you can see from the chart, though, this year the trajectory has been largely downward.

Bricklane Nov 2020 chart.

At first glance this looks alarming, but of course it’s important to note that the vertical axis of the graph goes from minus £200 to plus £200, so in reality the losses aren’t as bad as that scary-looking precipice might suggest. Allowing for the fact that I received a £100 welcome bonus when I signed up with Bricklane, overall I am about £80 down on my £5,000 investment. Of course, that’s not what you would hope for, but this has been a particularly tough year for anyone investing in property. Among other things, rising unemployment, company failures, more people working from home, and rising defaults on loans and mortgages (along with mandatory payment holidays) have all affected demand and reduced rental returns and property values.

A recent email from Bricklane gave further insight into the problems they are facing. It turns out that the Regional Capitals fund (in which I am invested) includes a number of properties that may need extensive refurbishment in light of the Grenfell Tower tragedy. As I understand it, they have cladding which needs assessing by specialists and may have to be removed and replaced. This is a time-consuming and costly business. Of course, the owners (who include me as an investor) have no option but to undertake this, and inevitably this is having an impact on the value of the fund.

This does of course illustrate that any investment in a single asset class such as property carries additional sector-specific risks compared with broader-based investments, and you may see greater volatility as a result. On the plus side, when investing in property your money is secured by bricks and mortar, so it’s very unlikely you will lose your shirt.

I guess if I was braver and had a longer time horizon, I might look at Bricklane as a value-investing opportunity just now. As it is, I am leaving my money where it is but won’t be investing any more with them for the foreseeable future. I am not planning to sell up as I don’t currently need the money and that would only crystallize my losses.

Otherwise there is nothing dramatic to report on the financial front. My two Buy2LetCars investments are still delivering the promised monthly returns without any hassle. To recap, investors with Buy2LetCars put up the money to finance a car for a key worker such as a nurse or police officer. They then receive 36 monthly capital repayments followed by a final balancing payment of interest and capital. I heard from the company today that they are allowed to continue trading in England’s second lockdown and are already experiencing an upsurge of enquiries from key workers needing transport. So if you are looking for an income-producing investment with a substantial lump sum payment after three years, they are well worth checking out (and likewise if you’re a key worker looking for a lease car yourself). If you’d like to learn more, you can read my review of Buy2LetCars here and my more recent article about the company here. And here is a link to Wheels4Sure, their car-leasing website.

My Property Partner and Kuflink investments are still both ticking along satisfactorily. Unsurprisingly there have been delays in repaying some of my Kuflink loans, but I continue to receive monthly interest payments on them and am not unduly concerned. As regards The House Crowd, I assume that the sales of the two properties in which I hold £1,000 shares are progressing, but can understand that it is a slow process. As with Kuflink, rental payments are still accruing, which should help to defray some of the selling costs.

There has been no further word either regarding my investments with Crowdlords. As I said last month, I have two remaining investments with them, Kennington Road eco-houses and Trent House. I was told they hope to have exit options for these properties by the end of the year, but I’m not holding my breath. On the plus side, they are paying 6 percent interest on my Trent House investment, which is quite generous in these days of ultra-low interest rates.

Personal

Thankfully this month has been less eventful for me than the previous one. Touch wood my left eye is recovering well after the laser treatment (thank you to those who have asked and/or sent me good wishes about this). I am going back to Burton Hospital in a week’s time for what I hope will be a final check-up.

I still have floaters in both eyes – worse in the left – but that is not unusual for people of my age. It’s annoying but not dangerous in itself, and there isn’t really any treatment (I understand lasers can be used in extreme cases to ‘blast’ them, but it’s rare to do this as it risks causing other damage). I did read online about a Chinese study which found that eating pineapple can help reduce floaters, so I was happy to have an excuse to eat more of this delicious fruit!

As I write this, England is going into its second lockdown. I am dubious about the wisdom of this and worried for people whose physical and mental health is likely to suffer, especially as it appears the second wave has already peaked and new case numbers are starting to fall.

I am at least thankful that the schools have been exempted this time. I live quite near a secondary school, and it lifts my spirit when I see the young people bursting out of the school gates at the end of the day. chatting to their friends, larking around, and generally doing all the things young people do. And not a mask in sight!

Today I am off to see my accountant to discuss my annual accounts. He works from home and neither of us was sure what rules applied in this situation, so in the end we agreed to meet outside on his front drive. At least this will help to ensure that the meeting doesn’t go on a minute longer than it needs to 🙂

I had a winter flu jab last month (the first time I’ve qualified for a free one as I reach 65 later this year). It seemed a sensible thing to do, especially as it may give some protection from Covid too. I did have a reaction to it, though. I woke up at around 2 am shivering violently, and then I started to get nausea as well. By morning I was feeling a lot better, apart from having had almost no sleep. Apparently these are quite common side effects of the vaccine, though two friends (both older than me) didn’t get any effects at all.

I went for my last pre-lockdown swim on Tuesday. The centre was busier than usual, so I guess I wasn’t the only one who decided to take the opportunity while it was still available. I am very disappointed that pools have been made to close again as there is no evidence the virus is spreading this way and many people (me included) depend on swimming for our physical and mental health. I just hope they reopen at the start of December and the lockdown isn’t extended. Personally I expect the numbers of new cases to continue falling over the next few weeks, not due to the lockdown but simply because that is the trend now. If that is the case, there will be no excuse for prolonging the lockdown. But I guess by the time of my December update we will know one way or the other!

Finally I am still dutifully completing the UCL Virus Watch weekly questionnaire saying whether I have any possible Covid symptoms (none so far). And I am still waiting to hear when I will be able to take the blood test to see if I have any antibodies or other natural resistance to the virus. But I gather they wouldn’t be able to do that until a few weeks have elapsed after the flu jab anyhow, so it may be just as well I’ve heard nothing yet.

So that’s it for this month really. I hope you and your loved ones are staying safe and well. As always, if you have any comments or questions about this post, please do leave them below.

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October Update

My Coronavirus Crisis Experience: October Update

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Regular readers will know that I have been posting about my personal experience of the coronavirus crisis since the original lockdown started (you can read my September update here if you like).

As previously I will discuss what has been happening with my finances and my life generally over the last few weeks, while trying to avoid being too repetitive!

As always, I will start with the money side of things.

Financial

As I’ve done before, I’ll begin with my Nutmeg stocks and shares ISA. This has gone up and down over the last few weeks, but currently stands at £16,578. That is over £500 up on last month, so I’m happy with that! Here is a screen capture covering the last three months…

Nutmeg account October

You can read my in-depth Nutmeg review here if you like.

My Property Partner and Kuflink investments are still both ticking along satisfactorily. Property Partner has resumed paying dividends on some properties, which is appreciated. The five-year sales process has also resumed. There is a backlog, though, so it will probably be longer than five years till the properties I hold shares in can be sold at the current, independently-assessed market price (or retained, of course).

There is nothing really to report about The House Crowd. I assume that the sales of the two properties in which I hold £1,000 shares are progressing, but can understand that it is a slow process at present. At least rental payments are still accruing, which should help to defray some of the selling costs.

There has been no further word either regarding my investments with Crowdlords. As I said last month, I have two remaining investments with them, Kennington Road eco-houses and Trent House. I was told they hope to have exit options for these properties by the end of the year, but I’m not holding my breath. On the plus side, they are paying 6 percent interest on my Trent House investment, which is quite generous in these days of ultra-low interest rates.

Personal

It’s been an eventful few weeks one way and the other.

As mentioned previously, I had booked a short break in Llandudno (see cover image) near the end of September. Thankfully I was able to go. If I had left it just a few days later I would have had to cancel, as the Welsh Assembly has decided to lock down the whole of the Llandudno and Conwy area due to rising infection rates. That means no-one can currently go in or out of the area without a compelling reason (and having a holiday booked there doesn’t count).

Anyway, I enjoyed my visit. I stayed in a self-catering apartment, which turned out to be a good choice in most respects. It was on two floors, with a lounge and well-equipped kitchen on the lower floor and a double bedroom and bathroom on the upper. The location was central but quiet, yet just five months’ walk from the sea. The only drawback was that parking was on the street and finding a spot was a bit of a lottery. I was lucky to get somewhere close when I arrived, but later in the holiday had to park on another road half a mile away, which was a bit of a pain. I paid £255 for my three-night stay via Booking.com, which I thought was reasonable. By comparison, the seafront hotels I checked out were charging over £600 for three nights’ bed and breakfast.

Not surprisingly Llandudno was quieter than usual for the time of year, but there were still plenty of visitors, and many of the small hotels and boarding houses had ‘No Vacancies’ signs in their windows. While some places and amenities were closed, many others were open, and I was pleased to find that the pier was fully operational (see photo below). Professor Codman’s famous Punch and Judy show on the promenade wasn’t running, though – a shame, as there were lots of young children who might have enjoyed it.

Llandudno

On my first day I left my car at the apartment and took a couple of bus tours. The first was the open-top bus that takes a circular route between Llandudno and Conwy and includes a running commentary. I have done this trip before and noticed that the recorded commentary hasn’t changed this year. Mind you, that may be just as well, as a post-Covid commentary would have had to include details about all the hotels and other places that have closed due to the virus, the seafront theatre that became a Covid field hospital, and so forth…

The other trip was on a vintage bus (see photo) around the Great Orme, one of the two promontories at either end of Llandudno’s seafront. This had a knowledgeable driver/guide, who provided an interesting – and up-to date – commentary. I must admit I particularly enjoyed seeing ‘Millionaire’s Row’ at the far side of the Orme. There are some amazing houses here, owned by people who like to preserve their privacy. Obviously the coach passes from a distance, but it was still a good opportunity to gawp at how the super-rich live. I particularly enjoyed hearing about the house that has its own private lift down to the beach!

On the second day of my visit I drove to the medieval walled town of Conwy, which is about three miles away. I booked a ticket online to see Plas Mawr, a restored Elizabethan town house (photo below). It was fascinating, and I was glad I took the option of borrowing one of the free electronic guides. You use these to scan a QR code in each room and it provides a commentary on the room itself and various interesting historical tidbits associated with it.

Plas mawr

As with my visit to Dunster Castle near Minehead earlier in September, all the usual anti-virus measures were in place. I had to wear a face covering throughout, and staff ensured that there were no more than two households in a room at any one time. It worked pretty smoothly, although you had to follow a set route and there was no possibility of returning to a room once you had left it.

  • In case you’re wondering, the photo in my cover image shows the Haulfre Gardens Tearoom on the lower slopes of the Great Orme. It’s one of my favourite places in Llandudno, and I was pleased to find it was still open. I enjoyed afternoon tea in their lovely garden on both days of my visit. As you can see, I was pretty lucky with the weather!

As mentioned above, I was very glad to be able to make my trip before the current lockdown would have made it impossible. I feel very sorry for people who booked after me and were unable to go, especially as I have heard that some are now having problems getting their money back. But I am sorry also for the hotels and other businesses who have been left high and dry by the lockdown. I really hope for their sake it doesn’t go on too long 🙁

Moving on, I had an experience I would rather not have had in the last few weeks too. At a routine eye examination my optician saw something she didn’t like the look of in the retina of my left eye. So she packed me off to the eye clinic at Queens Hospital, Burton. The doctor there told me I had a perforation of the retina, and gave me laser treatment then and there. It wasn’t painful but it was obviously nerve-racking. The doctor did say it was a good thing my optician had spotted the problem, as it could have led to a detached retina if left untreated, which is clearly more serious. I have to go for a follow-up check this weekend, but touch wood the problem has been repaired. I guess if nothing else this does show why it’s so important to have your eyes checked regularly even if you don’t think there is anything wrong with them. That applies doubly to older people and those who (Iike me) are very short-sighted, as we are especially susceptible to this sort of thing.

On the Covid front, clearly most of the news hasn’t been good recently. Mind you, in most parts of the UK hospital admissions and deaths remain a lot lower than at the peak of the pandemic in the spring. I have seen the current situation described as a ‘casedemic’, which seems a pretty apt description. Clearly it’s important to protect the elderly and vulnerable at this time. Young people don’t typically suffer severe reactions to the virus, however, so I do wonder if some of the more extreme measures aimed at them are fair or necessary. Personally I am taking what I consider reasonable precautions but still trying to live my life as normally as possible. I volunteered for the UCL Virus Watch panel a few weeks ago and fill in a weekly questionnaire saying whether I have any possible Covid symptoms (none so far). They have also just asked me to take a blood test to see if I have any antibodies or other natural resistance to the virus. I’ll be interested to see the results of that!

As regards masks and such matters, I have been wearing a half-face shield in supermarkets (as a mask sceptic I’m not going to other shops till masks are voluntary again, though I might make an exception if the shop clearly states that they welcome non-mask-wearers). I find this better than the full face shield I was wearing before, as it doesn’t interfere with my vision. Shields are also much easier to breathe through than cloth masks, and I haven’t yet been challenged by any staff members or self-appointed mask police. In case you are interested, here’s an Amazon ad (affiliate) for some half-face shields similar to the type I am now using.

Well, I guess that’s enough for now. I do hope you and your loved ones are staying safe and well. As always, if you have any comments or questions about this post, please do leave them below.

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August update

My Coronavirus Crisis Experience: August Update

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Regular readers will know that I have been posting about my personal experience of the coronavirus crisis since lockdown started (you can read my July update here if you like).

I said I hoped that update might be my final one, but in light of events over the last few weeks that may have been a bit optimistic. So I have decided to continue publishing monthly updates for a while longer.

As previously I will discuss what has been happening with my finances and my life generally over the last few weeks. As always, I will start with the money side of things.

Financial

Again, things haven’t changed dramatically since my update last month. Here’s the latest chart showing how my Nutmeg stocks and shares ISA is faring…

Nutmeg August 2020

Through July there have been ups and downs, but as of today my Nutmeg ISA is £400 up compared with my last update in early July. This represents a good overall recovery after it lost over a third of its value early in the pandemic (admittedly I helped things along by investing another £1,000 when the markets were near their lowest point). Even allowing for this extra £1,000, my portfolio is now a little above where it was before the crisis started.

I remain cautiously optimistic that the recovery will continue over the longer term. Obviously, if there is a big ‘second wave’ of the virus all bets are off, but personally I think this is unlikely. And even if it does happen, the NHS is much better placed to cope. So I plan to stay in the markets and continue to invest cautiously where I see value. I haven’t put any more money into my Nutmeg ISA just yet but will probably do so soon. Do take a look at my in-depth Nutmeg review if you haven’t already.

My monthly payments from my two Buy2LetCars investments (totalling around £420) continue to appear in my bank account every month like clockwork. I have had no issues at all with this platform, and am glad also to be supporting key workers by providing reasonably priced transport for them. Again, if you’d like to learn more, you can read my review of Buy2LetCars here and my more recent article about the company here. The minimum investment is £7,000 so this opportunity isn’t going to be for everyone – but if I had that sort of money burning a hole in my pocket right now, I wouldn’t hesitate to invest through them again. Each car generates a monthly income, with a large lump sum at the end of the three-year term. Interest rates range from 7 to 12 percent per year.

My other equity-based investments generally continue to do about as well as could be expected. As I said last time, my Bestinvest SIPP hasn’t lost any significant value when you allow for the fact that it’s in drawdown and I am currently withdrawing £200 a month from it. I’m not claiming any special skills as a stock picker, but having a broad range of funds in my portfolio has undoubtedly served me well. Years ago, also, I decided to invest some of my pension money in specialist healthcare funds, and these have done better than average over the last few months.

My property crowdfunding investments are still sluggish, though I was pleased to hear that Property Partner are recommencing the five-year anniversary process, starting on 1st October 2020. They also intend to start paying out dividends again on some properties from 30 September 2020 (though only those with strong enough financial reserves to justify this). Properties on their resale market are currently selling at up to 20% below the independent pre-Covid valuations, so theoretically there could be short-term profit opportunities here. But of course, there is no guarantee that properties will still sell at pre-Covid prices. I am not intending to invest any more on the PP resale market at this time, though I might review that if the initial five-year sales pass off successfully.

My Kuflink investments are still ticking along nicely, and it has been reassuring to see a steady stream of new loans going live on the platform over the last few weeks. I have been investing modestly in them, along with loan portions that have just a few months left to run via the Kuflink Marketplace. See my Kuflink review here for more information. Their up-to-£4,000 cashback offer for new investors is still open, incidentally.

I also have property crowdfunding investments with The House Crowd and Crowdlords. As mentioned last time, one of my House Crowd properties is in the process of being sold, so I should get around £1,000 from that. Checking on the THC website today, I see the buyer has now requested vacant possession, meaning the tenant has to be given notice to leave. So I am not expecting the sale to go through any time soon, especially as tenants have been given additional protection due to the pandemic (quite rightly, of course). They are continuing to pay rent, so this should at least help to defray some of the sale costs.

I received an email from Crowdlords a couple of weeks ago which came as a shock. It said that, ‘following recent announcements by the FCA to propose permanent changes of the mass-marketing of speculative illiquid securities, Crowdlords is ceasing all FCA regulated activity with immediate effect.’ The message went on to say that they are ‘currently exploring our options regarding the types of investments we will offer in the future and we will be in touch very soon with more details as appropriate.’

As regards existing CL investments – of which I have two – these will continue to be managed by Crowdlords. It is, though, disappointing that there have been no updates about either of my CL investments since before the pandemic, either on the website or by email. My investments are in bricks and mortar so I have no doubt I will get my money back eventually, hopefully with profits. But again, I’m not holding my breath. I will be writing to Crowdlords to see if any further information is available and will add an update here or in next month’s update as seems appropriate.

  • One other thing I have mentioned before is that I still have a few invitations available for an unusual sideline-earning opportunity based on matched betting. I have been asked not to divulge too many details about it on the blog for very good reasons I will explain privately to anyone who may be interested (and no, it’s not illegal!). What I can say is that it doesn’t require any financial outlay, is entirely hands-off, and will provide an income of £50 a month. No knowledge of betting is required, and you won’t have to place any bets yourself. Just note that the opportunity is only open to people who haven’t done matched betting before and have no more than two accounts already with online bookmakers. For more info (and receive a no-obligation invitation) drop me a line including your email address via my Contact Me page 🙂

Personal

As I’ve said before, I live on my own since my partner, Jayne, passed away a few years ago. I am lucky to live in a fairly large house with a good-sized garden, so being mostly confined to home hasn’t been as big a challenge for me as I’m sure it has for some. Also, I am well used to working from home, having done this for the last 30 years or so.

As you may know, I am a semi-retired freelance writer and editor (age 64). I’ve had very little work since the lockdown started, and was duly grateful to receive some financial support from the government’s SEISS scheme. I also intend to apply for the second tranche of SEISS payments when applications open on August 17th.

  • I am still available for freelance writing, editing or proofreading work, although not taking on book-length projects any more. Feel free to drop me a line if you think my services might be of interest to you 🙂

Last time I said it appeared the worst of the pandemic was behind us and things were starting to feel more normal again. I do still believe this, but of course in recent weeks there have been local ‘spikes’ leading to restrictions being reimposed in the areas concerned (including Leicester, my old university city). This has led to media scare stories about an imminent ‘second wave’ of the virus, for which there is still no actual evidence. I prefer to believe Professor Karol Sikora about this. He says such local upticks are entirely to be expected at this stage of the pandemic and should be controllable with the aid of track and trace and other suitable measures in affected areas.

One thing that has happened nationally in England since my last update is that face coverings have been made mandatory in shops and supermarkets. As you may know, I am very dubious about this. The evidence that masks offer any real benefit in this setting is weak at best. What’s more, many people misuse them, typically fiddling with them and re-using them without washing them (if that’s possible). Doing this can actually increase the risk of transmitting the virus. In addition, there are growing reports about people contracting other serious lung conditions through long-term use of masks.

What’s more, the imposition of mandatory masks has changed the atmosphere in shops and supermarkets, which had been starting to feel more relaxed. The tension in the air when shopping is palpable now. Although shop staff have generally displayed commonsense and tact when enforcing the rules, that hasn’t stopped some self-appointed ‘mask police’ from harassing people they think are breaking the rules.

I witnessed a particularly unsavoury incident in my local Morrisons, when a man confronted a woman who was shopping without a mask. He screamed insults at her, removing his own mask to do so – whether to berate her more effectively or (heaven forbid) ‘to see how she liked it’. The woman’s child was clearly distressed by the incident, and it left a bad taste in my mouth too.

For the record, while face coverings are now mandatory in shops, people with medical or psychological conditions that are exacerbated by masks don’t have to wear them (neither do they have to provide proof of this). My own suggestion, FWIW, would be for supermarkets to have a designated hour that is strictly ‘masks only’, so that people whose sensibilities are offended by others not wearing masks don’t have to see this. The rest of the time commonsense can be applied and people who can’t wear masks can be left to get on with their shopping without fear of being harangued by staff or other customers.

Personally I have a mild lung condition which means it is inadvisable for me to wear a tight face covering for more than a few minutes. I can be in the supermarket for over an hour when shopping for elderly friends as well as myself, and I’m not willing to put my health at risk for no good reason by wearing a mask for that long. So I am now wearing a clear plastic face shield/visor, which allows me to breathe but still provides a physical barrier. I think that’s a reasonable compromise personally. As a matter of interest, here is a link to the ones I ordered from Amazon, which I highly recommend [affiliate link].

You can also buy badges and lanyards from the Disability Horizons online shop which clearly show your mask exempt status (see picture below). There is no requirement to wear anything like this, but some people may wish to do so to reduce the likelihood of being challenged.

Mask exemption

I understand the government hoped that making masks mandatory in shops would encourage more people to go, but I don’t see that myself, and evidence appears to confirm that the opposite is the case. Personally I have found shopping a far less enjoyable experience since this measure was introduced, and am now going to the shops as little as possible. Their loss is Amazon’s gain, I’m afraid.

Moving on, I just had my first haircut since March, which was very much needed and appreciated. I have also been enjoying swimming again at my local David Lloyd club. It’s been great to be doing something normal again, and staff and management there have been doing a brilliant job. They are taking mitigation measures to protect against the virus, but these are generally unobtrusive and sensible (no mandatory masks for members or staff anywhere). The last time I went I also enjoyed a half-price cappuccino and cake in their coffee shop, by courtesy of the government’s Eat Out to Help Out scheme.

I am looking forward to my short break in Minehead at the start of September, which I booked before this crisis happened. I am also still mulling over whether to try to book a couple of days away in Wales. August is filling up now, including meeting friends I haven’t seen for ages, so this may have to wait till later in September. A weekend in Llandudno or Aberystwyth could definitely be on the cards.

Finally, I’m sure you’re dying to know, so I’m on the ninth and final season of Bergerac now. Jim has left the Jersey police and is living in France with new squeeze Danielle. The show did lose something when it moved away from Jersey, though of course the writers found plenty of opportunities to bring our hero back to the island. Some good new characters were introduced in the final series, notably the inimitable Roger Sloman playing Jim’s replacement, Inspector Deffand, with lip-curling disdain. I shall be sorry when I finish this box set. I do have others lined up, and am also mulling over subscribing to Britbox, mainly so I can relive my childhood with all the classic Doctor Who episodes there!

So that has been my experience of the coronavirus crisis to date. I do of course appreciate that I am in a fortunate position compared with many others, and hope you and your family are coping in these strange and worrying times. Here’s hoping that things continue to improve and we can all return in due course to something approximating normal life.

As ever, I’d love to hear your thoughts and experiences. If you have any comments or questions, as always, please do post them below.

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