Sainsburys Sharesave 2018 - Worth doing?

Temrael

I did quite well out of my employers Sharesave scheme, in my case I knew I was highly likely to be made redundant during the three years. This did indeed come to pass and so I didn't have long to wait to cash out.

The thing I would stress though is make sure that the moment you can cash out, that you do so (by exercising your buy option and then immediately selling).

At that point you have hopefully made the 20% discount (and ideally more) back. To continue to hold the shares after that point though would mean saying that out of all the shares and funds in the market you think Sainsbury's will do best. Unless you consider you have particular insights that the rest of the market doesn't, then that would be quite a bold position to take.

By all means, if the three years have got you interested in investing then keep it in the market but perhaps consider a diversified fund that spreads your risk.

This avoids too, the risk that something happens with your job at Sainsbury's that also hits your investments at the same time.

jennyjj

Daii wrote: »

I have the option to invest in the Sainsbury's Sharesave 2018 plan, and was just wondering if it was a worthwhile investment:


Is this a good deal, or are there better ways to invest the money? Thanks.

Hi Daii,
It will be about the best investment opportunity you'll ever see.
When I was with BT, they offered similar schemes, initially £100 per month, back in the day. I leapt in at 80 and was judged to be insane. Eventually I was maxed out at £250 across multiple schemes. Times were tight, but I kept with it. NONE of the schemes went bad and it wiped out my mortgage over a decade early and set me up for life.
All you have to be wary of is... After a scheme matures, diversify and don't run out of liquidity and find yourself forced to cancel a scheme. Unfortunately, redundancy can cause a sheme to need cancelling.
Other than that. Fill your boots. JFDI

kidmugsy

It's a gamble with the odds stacked in your favour. That's the best sort of gamble.

How much spare cash do you have each month? For example, save £125 to Sharesave, £125 to a Nationwide Regular Saver paying 5% AER.

Even if the share investment disappoints you'll have made an average of 2.5% p.a. which is about the rate of CPI inflation. Not too dusty.

Shashy

jennyjj wrote: »

Hi Daii,
It will be about the best investment opportunity you'll ever see.
When I was with BT, they offered similar schemes, initially £100 per month, back in the day. I leapt in at 80 and was judged to be insane. Eventually I was maxed out at £250 across multiple schemes. Times were tight, but I kept with it. NONE of the schemes went bad and it wiped out my mortgage over a decade early and set me up for life.
All you have to be wary of is... After a scheme matures, diversify and don't run out of liquidity and find yourself forced to cancel a scheme. Unfortunately, redundancy can cause a sheme to need cancelling.
Other than that. Fill your boots. JFDI

This year's BT one is an absolute beaut. 190p on the 3 year scheme and 170p on the 5 year. :cool:

What makes it even more attractive is the fact the new CEO's share options / packages mature 3 and 5 years from now; so for once there is a semblance of alignment in our remuneration incentives :rotfl:

somethingcorporate

Shashy wrote: »

This year's BT one is an absolute beaut. 190p on the 3 year scheme and 170p on the 5 year. :cool:

What makes it even more attractive is the fact the new CEO's share options / packages mature 3 and 5 years from now; so for once there is a semblance of alignment in our remuneration incentives :rotfl:

That makes up for some of the more recent disappointments. I cashed out of a number of the previous 5 year schemes part-way through and bought the depressed shares via HL. They're already well up and earning dividends :T

LULULU1

Does anybody know if they are doing a scene this year ?

george4064

LULULU1 wrote: »

Does anybody know if they are doing a scene this year ?

Not really something anyone can answer unless they work at Sainsbury’s.

If you work there I would suggest you speak to your HR department or whoever deals with employees benefits like this at Sainsbury’s.