Sharesave

downs523

does anyone do this scheme with sainsburys? if so how long do you have to be working there before you can apply?

danny69

you cant apply, you have to be invited. everyone gets invited at the same time, like every few years.

McSaver

Sharesaves on paper are a good investment because you cannot lose your money that you invest as you can take it back in cash at the end of the savings term and you could easily double or treble your money if your company shares increase in value during that term. I just recently taken 1 out with my employer and August 2013 seems like forever away.

opinions4u

Chris_K wrote: »

Hi,

My girlfriend currently has a sharesave scheme with the bank of scotland. She got her shares for £5.08 when they were worth quite a bit more than that. She has about £1000 saved already, the first set start to mature next year but the current share price has plummeted to around the £3 mark. She can withdraw the money she has put in at any time and will recieve interest on any money saved for over a year. Would it make sense to withdraw this £1000 and buy the shares at £3 or keep them in untill the end of the plan and pay the £5?

Thanks

Clearly it makes sense to buy at a lower price than a higher price IF you think the shares are a good investment. You may prefer not to be exposed to the risk though.

Another option would be to ring the payroll department and suspend contributions for 6 months. These can be made up by lengthening the term of the Sharesave at the back end.

This would give you the advantage of waiting for the next Sharesave offer. If this is at less than the £5.08 amount you can cancel the existing one and start again - risk free.

oxenryd

Hi all,

Ive now been invited to join a sharesave scheme, and am going to do the £250 for 5 years.

I m a bit concerned about the Capital Gains Tax. Can anyone explain how this works ?

Let's say I save 250 for 5 years, thats 15 K

Say at the end its 30K, does that mean I pay CGT on 5400 ? (The 30k minus the 15 k saved originally minus 9600 exempt = 5400 ?)

I hope I make sense
Many thanks

opinions4u

oxenryd wrote: »

Hi all,

Ive now been invited to join a sharesave scheme, and am going to do the £250 for 5 years.

I m a bit concerned about the Capital Gains Tax. Can anyone explain how this works ?

Let's say I save 250 for 5 years, thats 15 K

Say at the end its 30K, does that mean I pay CGT on 5400 ? (The 30k minus the 15 k saved originally minus 9600 exempt = 5400 ?)

I hope I make sense
Many thanks

You got it.

But only if you sold all the shares in the same tax year.

Sell half in one tax year and the other half in the next and you can reduce CGT to nil.

Or transfer some shares to a spouse and then sell in the same tax year, using each individual allowance.

Husband_of_a_spendaholic

Hi All,

I'm currently considering joining the Bradford & Bingley sharesave scheme. The option share price has been set at 35p - if the company recovers fully (or even gets taken over) the gains are likely to be huge.

Unfortunately, it's not quite so simple as I've just been interviewed for a position elsewhere and if I get offered the job, I'd love to take it.

The problem is I'm now thinking that if the share price returns to it's 2007 level, I'll have gained 10x my investment in 3 years which is a lot to give up. I realise that this is a big "if" but I'd appreciate some views on what you would do in such a situation.

DRS1

It is not uncommon for executives who are headhunted to be compensated for lost options and share incentives by their new employer (though I think this is usually only for awards already made). If the new lot are keen to have you why don't you ask for a signing on bonus to compensate for the lost potential gain!

opinions4u

Husband_of_a_spendaholic wrote: »

Hi All,

I'm currently considering joining the Bradford & Bingley sharesave scheme. The option share price has been set at 35p - if the company recovers fully (or even gets taken over) the gains are likely to be huge.

Unfortunately, it's not quite so simple as I've just been interviewed for a position elsewhere and if I get offered the job, I'd love to take it.

The problem is I'm now thinking that if the share price returns to it's 2007 level, I'll have gained 10x my investment in 3 years which is a lot to give up. I realise that this is a big "if" but I'd appreciate some views on what you would do in such a situation.

Big disclaimer here - speculation is included in this reply!

1) Don't make career decisions on the back of Sharesave schemes - if you'll be happy with a different job and get the chance, be happy!

2) Do you really thing it is likely that B&B will recover to £3+ a share before being taken over? My view is that while the shares of most banks will recover it will be a slow process. More likely a takeover for around 70p a share - that said, you could still do very tastily in that scenario, depending on the rules of the Sharesave scheme.

3) Get in with what you can afford. If you change jobs you still get your capital back. If the price drops of you get Northern Rocked, you still get your capital back. It's protected by the FSCS (for what that's worth) until you buy the shares.

I still see this scenario as a heads you win / tails you get your money back situation. And if they are back at 350p in 3 years time, enjoy it! If they're not, grab your capital back!

anna42hmr

i have participated in the rbs sharesave for years, i always pay in for 5 years, and have one maturing every year since last year, and have one maturing next month (though i have decided to have the money back and the bonus on the one due up this year) i only pay in what i can afford and each year incresed it slightly, the first year i paid in 25 a month for 5 years, the next year 30 a month for 5 years, and so on, the £25 one matured last year and i decided to get the shares, the 30 one finishes next month, and i also pay into one for 35, 40, 45, 50 and from next month will be paying into another one for 50 a month (you can save up to £250 per month)

i would recommend it, but only if you can afford it, dont forget at the end of the term, you can have your money back if you want (and a bonus, but this may be less than interest you would have earned in a savings account for the same period) you can financially loose, ie if the shares drop drastically, ie if you buy the shares in 5 years time (if you have a 5 yr plan, we can choose to save for 3, 5 or 7) however if a couple years later the shares drop drastically etc then you could loose out financially, on the other side though if shares go up, you are in profit

also dont forget do the shares for the company you are buying in pay dividends?? as that can be a nice cheque to get after you own the shares at the end of the term.

my dad has participated in the lloyds bank sharesave for years and the profits he has made from the schemes have paid for computers, the drive to be redone, family holidays, cars etc so it can be a positive thing, but like anything, once the shares are yours at the end of the term (though you aren not obliged to buy) there is a fincial risk