Share Save - What to do

NorthernMonkey1

Hello all,

Where I work has a share save scheme. I'm currently 32 months into a 60 month deal, investing £300 a month with an option price of 456p

I'm also 8 months into a second 36 month deal, investing £200 per month with an option price of 579p

Current share price is 674p

The maximum amount I am allowed to invest is £500/mo. This years scheme has been announced, with an option price of 517p. So I have the option of cancelling the scheme from last year @579 and investing in this years, at the lower buy price. I'd get the 8X£200 back with no interest.

I think this is a good idea, however, what factors do I need to take into account in order to decide on the best course of action. What action would you take in this situation?

thanks

NM

Marcon

Simple arithmetic really, coupled with what you think the share price is likely to do in the future (how long's a piece of string....). Why go on paying into a deal with an option price of 579p when you could have 517p? Just one thing - how long is this year's deal? If it's only 36 months, like last year's, it would make sense to change course. If on the other hand it is much longer you might want to think about whether you want to lock in for a very long period, even though the rate is better. Next year's deal could be better still.

Anonymous101

I'd be tempted to pull out of the previous scheme and start putting into this scheme at the higher amount.

Tom99

If its another 36 mth deal you atand to gain £770 so worth the minor loss of interest so far.

Zorillo

I'd be tempted to pull out of the three year scheme and start a new one with only £100 a month so you can do the same next year, and then when the big one matures, do £166 a month every year into three year schemes, and have a pot mature every year. But that depends if you intend to stay at the company long term, I suppose.

I attempted to do something similar a few years ago but ended up leaving the company before it all came to fruition, and haven't worked anywhere that offers it since.

Alexland

Maybe it's me, or my employer, but when you know whats going on inside a company it puts you off owning shares in them..

Zorillo

I wouldn't hold onto them, just take the profit between the discount and the current price at maturity (or whenever they qualify for sale, if there's strings attached). If there's no profit you don't have to buy them at all, as I recall.

AndyPK

cancel last years and invest in this years.

very common. you are only 8 months in

MallyGirl

Zorillo wrote: »

I wouldn't hold onto them, just take the profit between the discount and the current price at maturity (or whenever they qualify for sale, if there's strings attached). If there's no profit you don't have to buy them at all, as I recall.

Same here. I watch the price in the run up to maturity and then sell as soon as is sensible. My livelihood is tied up with my employer- I don’t want my investments to be so too

Merlin139

I would cancel and switch the £200 to the new scheme. My wife has done something similar 3 times in the last 7 years with her company. Lost out once but gained twice. It all comes down to how much you think you can make. I just work on the fact that I put away a said amount each year into 3 year schemes. If they go up I make if they go down I don't.