Oppertunity

bradqwer

So currently I pay £50 a month into a VG80 product however I have been given the chance by employer BT to invest in there company scheme I have not looked into this in great detail however I think its a 3 year scheme and the shares are bought pre tax so I save on that side also.

Would you suggest chucking £50 a month into this also for the 3 year term and forgetting about it?

justme111

When , on what conditions and how could you sell those shares?
I would not forget about it as having most of your money in a single company share sounds high risk.

p00hsticks

bradqwer wrote: »

So currently I pay £50 a month into a VG80 product however I have been given the chance by employer BT to invest in there company scheme I have not looked into this in great detail however I think its a 3 year scheme and the shares are bought pre tax so I save on that side also.

Would you suggest chucking £50 a month into this also for the 3 year term and forgetting about it?

We need more details - is it a sharesave scheme, where you put money away for a given term, and then get the option of buying BT shares at the end of that term at a discount / price fixed at the start ?


If you are not committed to buying the shares then it could be worth considering.

bradqwer

That's correct so its 3-5 year term up to a maximum of £250 a month in contributions at a fixed rate so if I joined today and the share was £1 a unit id then continue to invest for 5 years and at the end of the term if we worth £5 a unit I could purchase all my shares at the £1 unit price and sell at the £5 or continue to hold and see what happens

Flobberchops

Read the full details of the scheme, but if you can spare the £50 a month I think you should consider it.

ruperts

Are you sure it's taken from pre-tax salary? Most sharesave schemes I believe are taken from net pay but with a discount to the share price on a given day (the option price).

The schemes have usually got a good risk/reward ratio as the worst that can happen is you get your money back, and with a bit of luck you could make a decent return. But you need to be clear on how yours works.

redpete

ruperts wrote: »

Are you sure it's taken from pre-tax salary? Most sharesave schemes I believe are taken from net pay but with a discount to the share price on a given day (the option price).

The schemes I have been involved in pay for the shares out of gross income, pre-tax. One gave the option of buying at the price at subscription the other gave one free share for every 3 purchased.

Gadfium

bradqwer wrote: »

That's correct so its 3-5 year term up to a maximum of £250 a month in contributions

It's now £300 per month. You can also put another £150 per month into a SIP (Share Incentive Plan) though that carries more risk as you are buying shares and holding them.

capital0ne

The Interserve share save scheme proved to be a big mistake!

bradqwer

capital0ne wrote: »

The Interserve share save scheme proved to be a big mistake!

Care to elaborate n was this a BT share scheme

dividendhero

I believe BT operate two share schemes. One is based on buying shares out of gross income, the other is a share options scheme....I think the OP may be mixing the two up