Tech stock share price falls

Cobbler_tone

kinger101 said:

Cobbler_tone said:

kinger101 said:

Cobbler_tone said:

I (and the company) contribute £2,500 a month (costing about £800 net) into a workplace pension and £300 a month (costing me £90) into a company share scheme. I’d prefer neither to ‘crash’ but one would make me more nervous than the other if it did. 
Highly unadvisable to hold them post employment (i.e. ‘the mechanism has expired’) unless you potentially want the tax man on your shoulder. To date my c£20k has netted over £100k. For that return I’m prepared to take the risk, along with just about every employee in my large company. You’ll always find a horror story, I’m sure the stock market is littered with them.

I gets RSU which are taxed via withholding taxes which is all squared up via PAYE.  I then put the taxed proceeds back into a SIPP so have effectively only been taxed 2p NI. I buy only index trackers.

Guessing you have something else, but Iyou are only deferring the taxman by not crystalizing the gain.  If you want to hold shares in your own company, a tax wrapper is sensible as it shields future gains.  And selling often avoid problems like having pension AA tapering.  If they grow outside a wrapper, the overall tax bill will be higher.

Another reason why company shares are not so good as they are not so liquid for employees.  Blackout periods for employees are typically most of the year.  So if things do start going south, you might have to wait a while before you can sell.

Nobody is saying don't take advantage of the scheme.  But as soon as you've got your match and you can trade, the advantage has been gained and you can move on.

Thanks Kinger.
We can trade any day of the week. Shares are purchased on pay day. All shares are released tax free if you retire or get made redundant. They release after 3/5 years. If you just leave, you forfeit 12 months of matching shares and get taxed on the past 3 years worth…I’m not leaving.

Some good discussions and good for thought on the thread. The bit missed by some is that I have been selling shares throughout my career for various purposes.

I surprised that they allow open trading.  My previous employer awarded shares to all employees and the blackout periods extended to everyone.  You usually had a week or two after quarterly results then the window firmly shut for the next quarter.

Selling on dealing day is free. Selling live has a commission of around £10-15 per transaction. The price is typically around the monthly high on dealing day but have paid to sell on several occasions mid month or after certain financial results.

Cobbler_tone

Heads up. Your active DC pension might drop a bit this week. 

Moonwolf

Cobbler_tone said:

Heads up. Your active DC pension might drop a bit this week. 

Yes, I can see in my crystal ball a few panicky threads coming about how a pension has dropped.

Sods law for me, absolutely the worst time, just before I start drawdown, but it won't leave me impoverished.

Cobbler_tone

Moonwolf said:

Cobbler_tone said:

Heads up. Your active DC pension might drop a bit this week. 

Yes, I can see in my crystal ball a few panicky threads coming about how a pension has dropped.

Sods law for me, absolutely the worst time, just before I start drawdown, but it won't leave me impoverished.

That’s nothing compared to people moving out their cash ISAs.
I think under the bed is the safest bet….