Share Save Scheme

jamesd

I suggest that you cancel the current one and start one three year and one five year. Plan to have one mature every year, so that's another three and five year start next year, then five year plans after that. With one maturing each year you'll get protection from market drops near to maturity. The currently available three year one looks as though it'll probably mature after a good stock market recovery so £100 a month into it seems reasonable, with £50 into the five year then £50 into each later one as they start.

The capital from the one you close can subsidise the initial extra cost, then as the early ones mature their capital can fund the later ones, so you'll be able to afford £250 a month total. After a few have matured you'll be able to do the subsidy and still have money left over.

When you get the shares, don't just keep them. Sell and keep the cash to subsidise future ones or to buy alternative investments. This is so you don't end up accumulating a lot of shares and risk in your employer. If you did that you could lose your job and your shares at the same time.

Jonbvn

jamesd wrote: »

When you get the shares, don't just keep them. Sell and keep the cash to subsidise future ones or to buy alternative investments. This is so you don't end up accumulating a lot of shares and risk in your employer. If you did that you could lose your job and your shares at the same time.

The above point is well worth reiterating.

financial_illiterate

jamesd wrote: »

I suggest that you cancel the current one and start one three year and one five year. Plan to have one mature every year, so that's another three and five year start next year, then five year plans after that. With one maturing each year you'll get protection from market drops near to maturity. The currently available three year one looks as though it'll probably mature after a good stock market recovery so £100 a month into it seems reasonable, with £50 into the five year then £50 into each later one as they start.

The capital from the one you close can subsidise the initial extra cost, then as the early ones mature their capital can fund the later ones, so you'll be able to afford £250 a month total. After a few have matured you'll be able to do the subsidy and still have money left over.

When you get the shares, don't just keep them. Sell and keep the cash to subsidise future ones or to buy alternative investments. This is so you don't end up accumulating a lot of shares and risk in your employer. If you did that you could lose your job and your shares at the same time.

Thats a fantastic response, thank you very much.

The only issue is that I'm not sure the scheme allows two plans in the same year. I shall have a good read of the paperwork over the weekend and certainly bear your suggestion in mind.

Thanks once again!

Sceptic001

jamesd is spot on. It always strikes me as very risky to own a lot of shares in the company you work for - unless of course they make up part of a balanced portfolio.

One other point that no-one has mentioned: How do you think your company is going to perform in the next year, regardless of how the wider market moves? If you are in the financial services sector, any investment in shares is rather like a punt on the 2.30 at Haydock. You may well do very well, or you may lose the lot. If you work for a utility company it is a fairly safe bet. Horses for courses.

financial_illiterate

Sceptic001 wrote: »

jamesd is spot on. It always strikes me as very risky to own a lot of shares in the company you work for - unless of course they make up part of a balanced portfolio.

One other point that no-one has mentioned: How do you think your company is going to perform in the next year, regardless of how the wider market moves? If you are in the financial services sector, any investment in shares is rather like a punt on the 2.30 at Haydock. You may well do very well, or you may lose the lot. If you work for a utility company it is a fairly safe bet. Horses for courses.

Share value fluctuations aren't my concern for at least another three years though - the worst that will happen is I get my 'invested' (read - saved) money back plus a relatively modest interest payment. Given interest rates being what they presently are, its a calculated risk.