Do you want more financial security in 2018?
P2P lending provides a great opportunity to dip your toes into investing and create a more stable future for yourself.
Getting started is quick and easy
There are a lot of people who are interested in investing, but are intimidated by how complicated it all is. For example, if you want to try your luck in the stock market, you have to understand the jargon, be able to read the numbers, know a lot about the companies you are investing in, etc. This means that the entry barrier is high because you need to be very knowledgeable to get started. Same applies to most investing opportunities such as real estate, startups, ICOs, etc.
Meanwhile, investing in P2P loans is very easy, and you don’t need to be a business guru to get started. For example, with Fast Invest, the application process takes less than an hour, after that you are ready to go. Moreover, if you don’t trust yourself enough to make investing decisions, we offer an AutoInvest tool that will do all the work for you. No incomprehensible jargon, no numbers that make your head spin, and no need to be a walking encyclopedia!
You don’t need much-starting capital
Many folks who are considering investing are also deterred by the amount of capital required to get started. For example, if you want to start investing in real estate, you have to to cough up tens of thousands dollars for the deposit on your first property. Nowadays there aren’t that many people who have this amount of cash to begin with.
However, with P2P loans, you don’t need a ton of money to begin investing. For example, with Fast Invest, you can begin investing with $1! That provides an opportunity to test the waters with a small amount of money and to really understand how it all works before jumping all in.
It’s a better place to keep your money than a savings account
Your regular savings account only offers 1%-2% Even the best-paying accounts, like fixed-rate ISAs, only offer 1.35% interest. But then your money is locked away for the term of the contract. Is it really worth it? We don’t think so.
In fact, you are actually losing money by keeping your savings in the bank, because the inflation is around 2%-3%. How crazy is that? P2P lending is a much better way to grow your money.
P2P lending offers a high return on investment (ROI)
Every investor dreams of becoming rich, but if you look at the average returns of various investment opportunities, it becomes clear that that dream might be further away than we’d like to think.
For example, when it comes to buy-to-let real estate investing, best countries in Europe are Portugal, Belgium and Netherlands. The ROI in these countries? Only around 6.5% The ROI in other countries is even lower than that. And keep in mind that once you purchase a property, a massive amount of your net worth is locked in it.
The stock market isn’t doing much better. The average return for investing in stocks is 7%. That’s really not much considering how volatile the markets can be. Remember 2008? Many people saw their portfolios completely wiped out by the financial crisis.
Meanwhile, P2P lending usually offers an ROI of 8% - 13%, and with Fast Invest you can get as much as 15% ROI. Not too shabby when compared to other investment options, right?
There’s little risk if your loans are diversified
“Okay, all that sounds great, but what if the borrower defaults?” you might wonder. Fair enough!
First, if you diversify your loans, by which we mean that instead of funding an entire loan you add a few dollars to a wide variety of loans, a single default won’t affect you that much.
Second, here at Fast Invest, we offer a Default Guarantee, which means that if at any time a borrower is late on his scheduled repayment for 3 days, our business partners (credit institutions) will cover that late payment.
That way, even if a borrower is late with their payments, you still get your money. There’s no need to worry - you are protected by the Default Guarantee!
You can choose whether to reinvest your returns or withdraw them
With Fast Invest, you have a lot of flexibility when it comes to your money, and you can choose whether to withdraw your returns or reinvest them.
Don’t be so quick to withdraw, though. Remember what Einstein said: “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
Also, things happen. You lose your job, or maybe you get sick, or your car breaks down… Sometimes you simply need to withdraw your investment immediately. We get that.
That’s why we offer our Buy Back guarantee. Our platform does not have a secondary market for trading investments. If you decide to stop investing, we are obligated to buy back your investment in 1 day. That means that you can withdraw your investment at any time and get your money back.
P2P lending gains aren’t taxed heavily
P2P lending is considered to be a hybrid of saving and investing and is covered by Personal Savings Allowance. That means that you don’t pay any income tax on the first £1000 you earn. Plus, if a borrower defaults, you can set the loss against the interest from your other P2P loans, before you are taxed.
It’s a great way to earn passive income
Many people have only one income stream. That stream, of course, is their salary. In our society, we see this situation as completely normal, but it is in fact incredibly risky. Why?
Think about it. When you only have one stream of income, if that stream is cut off for any reason, you are immediately in a very difficult position. And despite how it all seems in a fair weather, any of us can lose our jobs in an instant.
Jobs simply aren’t as stable as they once were. In the days of our grandparents, it was common to start working in a company right out of college, and continue working there until the day you retire. People could trust their employers to take care of them. Those days are long gone, though. There’s not much loyalty between employees and employers anymore. Moreover, sometimes employers don’t have a choice but to fire people, as they did in 2008 crisis when millions of people worldwide lost their jobs unexpectedly.
And even if you have a trustworthy employer and a solid work contract, you never know what might happen in the future. What if you get sick and simply can’t work for a long period of time? No one likes to think about these things, but if you want to create true financial stability and financial security for yourself, you have to account for these kinds of scenarios.
That is why having multiple income streams is so important. You want to have a plan B in case you lose your job or can’t work anymore. And P2P lending is one of the easiest ways to create a passive income stream.
It’s a great way to prepare for retirement
Retirement should be the golden years, but if you aren’t properly prepared, it instead become years of hardship and struggle.
A lot of people have misconceptions about retirement. For example, are you aware that even if you put away the required amount of money for retirement out of every salary, you are still going to see a significant drop in your income?
According to research, a 30 year old that is earning a £27, 271 a year (the average salary in the UK), and contributing 1% of it to the workplace pension matched by the employer, will only get £9,734 during their retirement. That’s a drop of 65%! Can you imagine living on 35% of your current salary?
That’s why it’s important to take control of your retirement situation. P2P lending is a great way to build a solid income stream over a long period of time. Start now and your 70 year old self will thank you for it!
You get to help people in need
Getting a consumer loan from the bank can be really difficult if you have a bad credit history or no credit history at all. There are plenty of reliable people who can’t get loans because of the mistakes they have made in the past. Plus, banks usually don’t give out small consumer loans (smaller than $5000) because these loans are not profitable enough for them due to their large overhead.
Investing in P2P loans gives you an opportunity to help those who need a loan but can’t get it from a bank.
Whether you are simply looking for a place to keep your money, or want insurance against a job loss, or are preparing for retirement, P2P lending is a great investment option.
So make sure to add a few P2P lending to your portfolio in 2018!