Share Save Scheme

mccstuff

I work for Peugeot and I am enrolled in their share incentive plan. I now have shares that I am eligible to sell, about £3000 I think. (rough guess)

I just wanted to know the pro's and con's of either hanging onto them or selling and re-investing as I don't need the cash at the moment.

I'm a complete novice with this sort of thing so please be gentle.

Thanks.

Aegis

Pros: the investment might grow more

Cons: the investment might shrink.

Single company investing is one of the higher risk strategies (ask anyone with shares in Northern Rock...). Until recently I had shares in Lloyds TSB, bought for me by my mum when I was young. I traded those in and bought units in collective investments to diversify the risk and so far my money has grown by a lot more than I'd have seen by sticking with LLOY.

Your call really.

mccstuff

Cheers for the reply, because I've had my tax free period out of these and I'm in a winning situation at the moment and was thinking of cutting and running with the shares that I can cash in. I am still in the scheme so I am buying more shares every month, so I'm not losing out.

I paid around £33 a share on purchase (plus tax relief). They are currently hovering around the £40 mark, according to a website I just checked.

I must admit I'm tempted to cash them in and use them in a mini stocks and shares ISA but I am unsure how to go about this.

Aegis

If you do a search on the forum for "selftrade" and possibly "referral" I think you'll find a way to get about £70 from a referral scheme by transferring your shares to their platform. They will also reimburse your transfer out costs from where you keep them now (if they charge you to leave) up to a certain amount.

Once you have them on that site, you'll get charged about £12.50 to sell the shares (leaving you with quite a bit of profit still!), and from that point on you can hopefully take your money out whenever. At that point, you can set up a stocks and shares ISA or a trading account with Hargreaves Lansdown (about the best for unit trusts and OEICs) as long as you're happy to invest in such funds without professional advice.

mccstuff

The purchase price of the shares was between £26 and £35 over a 3 year period, I checked last night.

My brother in law is a financial advisor and has given me a couple of funds to look at, I'm happy putting my cash in a mini stocks and shares ISA and understand there is risk involved.

I'll have to do a search for selftrade on the forum when I get the cash back from the shares.

Thanks for all your help.