Sharesave.. am I missing something?!

molerat

On the other side of the coin the shares that mature in 3 years could be worth a lot less than the ones that mature in 2. You are gambling on the shares only going one way and as you have found out they can also go down. Unless the 30p is a major percentage of the share value I would leave as is and buy more this year.

StephenM_2

meer53 wrote: »

What most people do is have more than one sharesave running at a time. I have 2 running at the moment, one which matures this year and one which matures in 2 years. The one which matures this year will be a winner for me as i should make about £3 per share when i sell them, maybe more if the shares go up a bit further

Back in the day when I used to do sharesasve schemes I often had 7 running at the same time. I used the 7 year option taking out a new scheme every year for about 15 years. All of them made a profit in that the option price was lower than the price of the shares at maturity.

Had to stop when my employer was sold to another company who run a different type of shares scheme.

markwilkinson

Our maximum is 5 years, as said above I start a new one each year meaning I now get a pay out each year.

I don't take them out to save for anything in particular, when one pays out, I take the decision weather or not to buy the shares and then sell at a profit, or just take the cash (never needed to just take the cash as, so far, there has been profit in taking the shares and then selling). The money then gets locked away, again, in some form of tied in fixed rate savings account.

geordie_ben

OK, I've done some sums, all figures are based on today share price and highest ISA interest rate..

Option 1. Keep the current SS and at the end end of the 3 years, lock the money into a 1 year ISA. Total figure at the end is £8247.13

Option 2. Stop the current SS and start a new one with the new buy price, get back the money and lock it away in an ISA for 2 years and then use that money to pay for the 3rd year of the SS. Total figure at the end is £9,418.14

Option 1 gives a return of 10.3%
Option 2 gives a return of 21.4%

Con = will take another 3 years to get the money back
Pro = more return, 3rd year will already be paid for

Anyone spot any flaws?