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    • owen77own
    • By owen77own 12th Oct 16, 2:33 AM
    • 1Posts
    • 0Thanks
    £23k employer shares
    • #1
    • 12th Oct 16, 2:33 AM
    £23k employer shares 12th Oct 16 at 2:33 AM
    I have £23k in shares with my employer, (oil company), we recieve a 7% discount when purchasing the shares. I am counting this as contingency towards house build. Would you;

    1. Leave the money as shares?
    2. Withdraw and put in savings account?
    3. Withdraw and place in bonds?
    4. Other?
Page 1
    • ARandomMiser
    • By ARandomMiser 12th Oct 16, 6:01 AM
    • 743 Posts
    • 1,446 Thanks
    • #2
    • 12th Oct 16, 6:01 AM
    • #2
    • 12th Oct 16, 6:01 AM
    Who knows? I would have thought that in the current market oil would be a good investment but then a decade ago I thought banks were a good bet and lost quite a bit. The purchase discount would certainly help.
    • bowlhead99
    • By bowlhead99 12th Oct 16, 6:38 AM
    • 4,807 Posts
    • 8,440 Thanks
    • #3
    • 12th Oct 16, 6:38 AM
    • #3
    • 12th Oct 16, 6:38 AM
    1) If it is there as a contingency for your house build you don't want it to halve in value when you need to use it. If you want to leave it as shares, would be crazy to have it as shares in just one company (I am assuming you don't also have £450k of shares in other companies so that this £23k is only 5% or so). So if you want to leave it invested in shares, sell it and buy £23k of investment funds which own a portfolio of other companies across industries and countries.

    2) seems fine

    3) have you identified any bonds paying significantly more than the top savings / current accounts without significant extra risk? If not, stick with 2.
    • tom9980
    • By tom9980 12th Oct 16, 8:01 AM
    • 1,152 Posts
    • 3,544 Thanks
    • #4
    • 12th Oct 16, 8:01 AM
    • #4
    • 12th Oct 16, 8:01 AM
    I would sell and invest in something else. My reasoning is your job and shares are based on oil what if someone invents something that makes oil obsolete, you would lose your job and the value in those shares so diversify.
    “In order to change, we must be sick and tired of being sick and tired.”
    • atush
    • By atush 12th Oct 16, 11:34 AM
    • 15,240 Posts
    • 9,137 Thanks
    • #5
    • 12th Oct 16, 11:34 AM
    • #5
    • 12th Oct 16, 11:34 AM
    It would make sense to diversify.

    Even if you want to keep to equities, you dont want to keep all your money in one share (which can be volatile- look at what happened to BP not so very long ago?)

    a 7% discount is NOt to be sniffed at, but wont insulate you from a 30% fall?
    • ArmyDilllo
    • By ArmyDilllo 12th Oct 16, 12:54 PM
    • 71 Posts
    • 153 Thanks
    • #6
    • 12th Oct 16, 12:54 PM
    • #6
    • 12th Oct 16, 12:54 PM
    On April 6th I invested in oil (BP and Shell) with nearly my entire ISA allowance.
    Then I cashed in an ISA from an earlier year's allowance and put that in as well.
    Without the two dividends (7% annually) that I've received since, I'm up 34.24% on growth alone so far.

    I still reckon there's room to improve and hope to see a further production freeze announcement by the Summer (possibly even November now that Russia, Saudi, and Iran seem to be on the same page), but that's mostly in Iran's hands.
    Production at current levels has been costing OPEC members £350M every day.
    I'm assuming they'll want to see some of it back soon.

    [Edit: I have a sufficiently diverse portfolio to allow this]
    Save 20k in 2016 #143: £21,257.00/£20,000 (Target achieved 16Apr16)
    30Sep16 - Retired at 56.
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