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  • FIRST POST
    • NorthernMonkey1
    • By NorthernMonkey1 11th May 18, 8:52 AM
    • 241Posts
    • 971Thanks
    NorthernMonkey1
    Share Save - What to do
    • #1
    • 11th May 18, 8:52 AM
    Share Save - What to do 11th May 18 at 8:52 AM
    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
Page 1
    • Marcon
    • By Marcon 11th May 18, 10:51 AM
    • 541 Posts
    • 404 Thanks
    Marcon
    • #2
    • 11th May 18, 10:51 AM
    • #2
    • 11th May 18, 10:51 AM
    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
    • By Anonymous101 11th May 18, 11:05 AM
    • 1,158 Posts
    • 582 Thanks
    Anonymous101
    • #3
    • 11th May 18, 11:05 AM
    • #3
    • 11th May 18, 11:05 AM
    I'd be tempted to pull out of the previous scheme and start putting into this scheme at the higher amount.
    • Tom99
    • By Tom99 12th May 18, 2:16 AM
    • 2,973 Posts
    • 2,047 Thanks
    Tom99
    • #4
    • 12th May 18, 2:16 AM
    • #4
    • 12th May 18, 2:16 AM
    If its another 36 mth deal you atand to gain £770 so worth the minor loss of interest so far.
    • Zorillo
    • By Zorillo 12th May 18, 7:44 AM
    • 427 Posts
    • 280 Thanks
    Zorillo
    • #5
    • 12th May 18, 7:44 AM
    • #5
    • 12th May 18, 7:44 AM
    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
    • By Alexland 12th May 18, 9:14 AM
    • 3,572 Posts
    • 2,884 Thanks
    Alexland
    • #6
    • 12th May 18, 9:14 AM
    • #6
    • 12th May 18, 9:14 AM
    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..
    Last edited by Alexland; 12-05-2018 at 9:17 AM.
    • Zorillo
    • By Zorillo 12th May 18, 9:34 AM
    • 427 Posts
    • 280 Thanks
    Zorillo
    • #7
    • 12th May 18, 9:34 AM
    • #7
    • 12th May 18, 9:34 AM
    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
    • By AndyPK 12th May 18, 9:53 AM
    • 3,381 Posts
    • 985 Thanks
    AndyPK
    • #8
    • 12th May 18, 9:53 AM
    • #8
    • 12th May 18, 9:53 AM
    cancel last years and invest in this years.

    very common. you are only 8 months in
    • MallyGirl
    • By MallyGirl 12th May 18, 11:24 AM
    • 3,034 Posts
    • 8,055 Thanks
    MallyGirl
    • #9
    • 12th May 18, 11:24 AM
    • #9
    • 12th May 18, 11:24 AM
    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.
    Originally posted by Zorillo
    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 donít want my investments to be so too
    • Merlin139
    • By Merlin139 12th May 18, 11:30 AM
    • 5,246 Posts
    • 20,684 Thanks
    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.
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