Anyone got any shares that have dropped (but are still going to hold onto them?)

fluffybunny_2

I just thought I'd mention this

If you've got shares that used to be a lot higher but you're going to hold onto them to see if they go back up, it might be worth you transferring them into an ISA .

there are cash ISAs and also Stocks and shares ISAs.

Some Stocks and shares choose the investments for you (ie, you give them your money and they invest it for you)

With other ISAs, you can put your own shares in (ie, you choose the shares or send in your own share certificate). so, if you transferred say £5000 of your own shares into your own choice ISA now and they went up in value, because they're in an ISA, its free from Capital Gains tax

there are small admin fees but its a small price to pay if you save £1000s in tax

With the current climate, the banks/building society share values have been badly hit. I know of someone who's shares in one bank have dropped from £100k to £10k! He didnt sell when they were £100k as he was worried about Capital gains so if he transferred them in now (can easily split it over two tax years), they would all then be under the ISA umbrella. This means that if they went back up to previous heights, it was all be legitimately tax free

Its only worth considering if you think that you may be liable to Capital Gains tax though (current limit pp is £9600pa)

There are lots of companies that do them - just google "self select ISA"

HTHS

sh856531

>I know of someone who's shares in one bank have dropped from £100k to £10k

I can't believe that people actually let this happen... Some people must just have too much money to care about putting a stop loss on!

:-|

turbobob

I would guess a lot of more senior staff in banks have significant amounts of shares they've acquired over the years that are now worth a fraction of what they were a year ago..

agsnu

fluffybunny wrote: »

With the current climate, the banks/building society share values have been badly hit. I know of someone who's shares in one bank have dropped from £100k to £10k! He didnt sell when they were £100k as he was worried about Capital gains so if he transferred them in now (can easily split it over two tax years), they would all then be under the ISA umbrella. This means that if they went back up to previous heights, it was all be legitimately tax free

Just remember that it took 25 years for the DJIA to return to pre-1929 levels after the Wall Street crash.

ad44downey

fluffybunny wrote: »

. I know of someone who's shares in one bank have dropped from £100k to £10k! He didnt sell when they were £100k as he was worried about Capital gains so if he transferred them in now (can easily split it over two tax years), they would all then be under the ISA umbrella. This means that if they went back up to previous heights, it was all be legitimately tax free

He doesn't by any chance post on MSE under the name decadent fool, does he?

nrsql

Surely if you thought a share was good value then if it drops in price it will be better value.
A drop in price shouldn't be a reason to sell on it's own.

Pssst

I expect thousands of bank employees have lost paper fortunes via sharesave schemes etc through no fault of their own.

nrsql

How about people who invested in Lehmans guaranteed products - and it now turns out that the guarantee is worthless.

I have always thought it's a bad idea to invest in the company you work for - as you are likely to lose your job at the same time as the investment drops in value.

More worrying is that the government now thinks it can bring in retrospective legislation to take assets away from those who have benefitted from the current situation - and HH says they will change the law (or ignore it?) to suit public opinion!
"It might be enforceable in a court of law this contract but it's not enforceable in the court of public opinion and that's where the Government steps in,"

Pssst

Its a pity HM Government dont take notice of public opinion more often,other than when it suits them.

nrsql

Pssst wrote: »

Its a pity HM Government dont take notice of public opinion more often,other than when it suits them.

I would rather they did what they thought right rather than what they thought would sound good in the short term - or, more likely, what they think will take focus away from more problematic areas.

gozomark

nrsql wrote: »

Surely if you thought a share was good value then if it drops in price it will be better value.
A drop in price shouldn't be a reason to sell on it's own.

A drop in the share price is telling you were wrong in the first place - a stop loss prevents your wrong decision potentially turning into a disaster