Is it worth seeing a financial advisor ?

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81950301#Comment_81950301

Ah yes I’m now leaning towards the idea of putting money into S&S ISAs and have them in index tracking funds that are diversified.

Can I ask what index funds you use?

I’ve looked at the FTSE All World ETF but need to spend some more time looking into this, anyone have any recommendations for index tracking funds?

SootySweep1

https://forums.moneysavingexpert.com/discussion/comment/81950597#Comment_81950597

Yes I agree & it is something we need to resolve but BAE Systems employees get very favourable terms to acquire shares and they need to hold on to them for a while to avoid tax

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81950654#Comment_81950654

The difference between the different global index trackers is relatively minor.

However the decision to go in this 100% equity direction is quite significant. Although these trackers normally perform well in the long term, they can be volatile in the short/medium term. This does not suit everybody, especially those with a nervous disposition.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81950685#Comment_81950685

It very much depends how you acquire the shares (what the scheme is eg SIP, SAYE Share Option Scheme, Approved Executive Share Option Scheme, Unapproved Executive Share Option Scheme, Long Term Incentive Scheme or any of a number of others invented since I stopped taking any notice of this stuff).

For some of them holding the shares for a long time can help (eg if you get them and keep them in a SIP).

For others it is possible to transfer the shares to an ISA (SIP and SAYE Schemes) within a 90 day period after eg the exercise of the SAYE option, which can help avoid tax. That assumes you have enough room in the ISA for the shares.

But for others it is not necessarily the case that holding for "a while" will "avoid tax". For an unapproved share option scheme you might as well sell all the shares on exercise of the option - you'd need to sell at least some of them to cover the income tax (and NIC?) charge on exercise.

If you have shares acquired on exercise of an approved option (eg under an SAYE Scheme) then there will be a CGT charge on sale of those shares unless you got those shares into an ISA when you exercised the option.

So it would be worth pinning down how you got the shares and where you are keeping the shares to see what the tax consequences are of selling them (or indeed if you can sell them - eg if there are restrictions on them).

huw01

if you search lgps on youtube there are a lot of webinars from different funds to members that have been uploaded. It may not be from your scheme but the rules are the same for all of them. They are really informative and explain how the scheme works, how different elemtns of the scheme and dates etc. Also my money matter on youtube have a series of videos on lgps and avcs.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81950740#Comment_81950740

I’m planning to have a cash ISA and some premium bonds alongside the S&S ISA, so will have some money in safer options.

I would also plan to leave the money in the S&S ISA for 5 to 10 years, maybe longer, so it would certainly be a long term plan with that pot.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81950654#Comment_81950654

I get my retirement income from DB pensions and rent from a flat I own. My funds are basically a global and a domestic equity index…so any of the ones from Vanguard, HSBC are ok. I also have an income fund that has some bonds and dividend company shares. What you end up with will be dictated by your own circumstances and appetite for risk. As I don't really need my investments to generate income I feel ok keeping them invested quite aggressively in equities.

Sarahspangles

https://forums.moneysavingexpert.com/discussion/comment/81950685#Comment_81950685

I can't remember the details now, but my other half was given options for his shares within the process of making final arrangements for his departure, specifically he didn't have to hold the recent purchases for as long to be able to sell them tax free.

Not everything went as smoothly, he was getting dribs and drabs of back pay for another seven months after he handed in his cards!

Cobbler_tone

https://forums.moneysavingexpert.com/discussion/comment/81952019#Comment_81952019

There are some common approaches with company share schemes upon exit.

Ours is straight forward. If you leave for another job, or are dismissed….you lose the last 12 months of matching shares and have to cover any tax liabilities on the shares.

If you are made redundant or retire…you immediately get all of the shares tax free. Or you can transfer them to your own share holding account but then they become liable for CGT. Virtually everyone I know cashes them in when they leave, which is the sensible option.

'good leaver vs bad leaver' pretty common.