Share Purchas Plans

katies_mum

Not sure if I have posted this in the right place!

Husband has the chance to join his companies Share Purchase Plan - I understand you make monthly payments to buy share in the company for 5 years.... can anyone advise if these schemes are worth doing at the moment with interest rates so low etc. Not really sure how it works but know you need to keep your money in it for 7 years to get full benefit.

Any info or advice would be great. Thanks

Reaper

Probably worth doing but
1) Does he feel his company is a good bet? - not likely to go bankrupt in the near future?
2) Is he planning on staying for the forseeable future?
3) You need to understand the plan and read the small print

Normally it works like a savings account and at the end of the specified period you get the option to buy the shares at a less-than-market price, but you need to read up on it to see if that is how it works.

katies_mum

Thanks,

Company is DHL! he is 55 so would stay until he has to leave unless anything untoward happens. Its just 7 years seems a long way a way. We`ve never considered anything like this before.

opinions4u

Is this a Sharesave scheme?

If so it will usually offer 3,5 or 7 year options.

Check this out, and also check out what the rules are should he take early retirement. Some schemes will allow him to benefit early in those cicumstances.

To get real help, you need to post more specific information as to what type of share scheme it is. There are several and the risks and benefits can vary greatly with each one.