The mainstream media is styling today as the fifth day of Russia’s invasion of Ukraine. The immediate investment knock-ons include the Russian rouble’s fall to an historic low against the dollar, and UK and international equity indices falling back. Bitcoin, seen by many as an investment hedge, is showing a gain of around four percent over the past five days – after a dismal year-to-date performance of a 19 per cent loss (both percentages here are calculated in sterling rather than dollar values). Trading in cryptos generally has been somewhat subdued.
Despite reporting strong fourth quarter results, Coinbase saw its shares fall in morning trading as it warned of a rockier Q1.
Coinbase beat Wall Street expectations to record revenues of $2.5 billion in Q4, up from $585 million a year ago. Earnings for the quarter were $840 million, or $3.32 a share, up from $177 million, or $0.66 a share the previous year.
However, the company says that a decline in crypto asset volatility and crypto asset prices will see lower volume from retail monthly transacting users this quarter.
This contributed to Coinbase’s stock dipping three per cent in Friday morning trading. The stock is now about nearly 50% down since the firm went public last April.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.