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13 Aug 21 18:54
Date Joined: 06 May 10
| Topic/replies: 5,346 | Blogger: prepared83's blog
No chit chat anymore, so hoping a few of them that remember might be on here.
Anyway years ago I started a thread on chit chat about doing the sharesave scheme with Morrison's. (You get
a 20% discounted share price) anyway I've been putting in the maximum for years now.
But it was that thread that convinced me it was a no brainer if I could afford it.
So wanted to say thanks. In case you don't follow it a big takeover of Morrison's is due any week now and the share
price is still rising. Thanks again if you are still on here
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Report Cider August 13, 2021 8:26 PM BST
Shares question?

prepared8320 Apr 18 16:13Joined: 06 May 10 | Topic/replies: 5,321 | Blogger: prepared83's blog
The company i work for has asked if i want to be part of their share save scheme.
It says i can save anything between £5 and £350 a month with them for 3 years and after 3 years i
have a fixed option to buy my shares at £1.87 (currently trading about £2.40.
So does this mean i'll make a profit if the price in 3 years time is more than £1.87??
Also i can pull out and take my money back at any time in the next 3 years.
Would anyone think this is a good idea??? cheers

Mick Sturbs
Mick Sturbs20 Apr 18 16:17

It is a good idea ..I don't know if you can take money out in the next 3 years but it is a bad idea to do so

Put an amount of money in that you can afford then in 3 years sit back and take the profit.Even if the share price falls you cannot lose money
Report•Quote•Block UserFoinavon • April 20, 2018 5:24 PM BST
I participated in one of these 20 years ago with my employer at the time and it turned out to be an excellent investment. You shouldn't invest on my anecdotal evidence, it depends on how you see the likely future growth of your company and the fortunes of the economy and the stock exchange.
You are being offered a savings scheme and an option to buy shares at some time in the future at a heavily discounted price on a current stock market price. You need to read the rules of the scheme in order to decide if it's for you or not.
Report•Quote•Block UserAspro • April 20, 2018 5:42 PM BST
Definitely buy in what you can afford.

I turned £100 per month into £19k with one of these, which in turn took my kids to Florida and put down a deposit on my first home. Great investment and usually a good return if shares fall. No brainer, do it!
Report•Quote•Block UserAspro • April 20, 2018 5:42 PM BST
5 years my one was (£6k invested)
Report•Quote•Block UserStow_judge • April 20, 2018 5:52 PM BST
Chuck as much as you can afford at it. Some companies I previously worked for ran these share save & other lucrative schemes. Share options were the most lucrative, where they used to grant us options to buy our salary's worth of shares every 3 years. We  also had a share match scheme, where it was buy one, get one free. A friend had one for another company that was buy one, get two free.
Report•Quote•Block UserIbrahima Sonko • April 20, 2018 5:53 PM BST
You need to go the full £350 if you are buying them with such a discount, like you said you can cancel or probably take the cash with a bonus interest if the share price falls.

I get sharesaves and sips with the company I work with, no offer will ever be as good the first time they floated thou.
Report•Quote•Block UserStow_judge • April 20, 2018 5:57 PM BST
In the longer term, sell them and consider investing the proceeds in some investment trusts or funds, like EWI, FRCL or RCP. It's not normally a good idea to have all your eggs in one basket. Investing in single shares can be a risky investment. It's better to be diversified. Those investment trusts & funds I mentioned  would not have more than 5% in any one company. They are also diversified across regions & companies with respect to currencies.
Report•Quote•Block UserAspro • April 20, 2018 6:06 PM BST
One thing you need to be aware of before you even consider taking up the option and that is your pension contributions if you are on the government incentive. Last year it was 1%, this year it is going up to 3% and next year 5% - keep that in mind!
Report•Quote•Block Userfronter • April 20, 2018 6:38 PM BST
You can't go wrong buy as many as you can afford - I turned 4k investment into 21k - not all will be as good though
Go to max you can afford!
Report•Quote•Block UserJust Checking • April 20, 2018 6:40 PM BST
Unless the company is on the downhill it sounds like a good deal.
They are already traded that's the key thing. I was offered shares in a non publically listed company I worked for and it felt a bit .. I mean what would I do if I wanted to sell them? Argue with the boss how much the company was worth?
Report•Quote•Block UserJust Checking • April 20, 2018 6:41 PM BST
What you say doesn't even have a catch as you can pull out if the share price dips? Seems a no brainer.
Report•Quote•Block UserAspro • April 20, 2018 6:42 PM BST
It's irrelevant JC... it's a share option. You don't make the decision until the end of the period and if you don't want to take it, you take back your cash with a small interest payment. For mine I got either £7.5k (for £6k investment over 5 years) or the option to buy the shares at the price quoted at the outset.
Report•Quote•Block UserJust Checking • April 20, 2018 6:46 PM BST
Exactly, he's not bound, if it was like he was tied in and had to buy at 1.87 like a short gone wrong, that would be risky.
Report•Quote•Block UserAspro • April 20, 2018 6:46 PM BST
Indeed it would
Report•Quote•Block UserAspro • April 20, 2018 6:47 PM BST
It's a no-brainer for anyone. Just work out what you can comfortably afford each month over the period and do it. Not everyone wins big, but nobody loses.
Report•Quote•Block UserJust Checking • April 20, 2018 6:47 PM BST
I'm guessing the thinking is to incentivise making the company successful + working capital for 3 years (if they are allowed) so .. everyone inws.
Report•Quote•Block Userfronter • April 20, 2018 7:02 PM BST
Yes and encourages employees to stay with the company and work that little bit harder Wink
Report•Quote•Block Userakabula • April 21, 2018 1:12 AM BST
Great schemes. I was in 4 in my working life and benefited every time, once by over 3 times my investment.
Put in as much as you can afford. At the end of the 3 years (I'm sure theres a 5 and 7 year option normally) you can either take up the offer or get your money back if less than £1.87.
Report•Quote•Block Usergeoff m • April 21, 2018 7:35 AM BST
No brainer.
Report•Quote•Block UserbigH • April 21, 2018 8:39 AM BST
its nearly always a good idea to buy something for £1.87 when its true value is potentially higher and there is no downside apart from lost of interest
Report•Quote•Block UserPaddy Hair • April 21, 2018 9:01 AM BST
I do one at work, I do one for £50 every year ours are 5 year plans. Been 4 years now, when I do this years it will give me 5 years meaning for the next 5 years one Matures and I start a new one. Rolling payout, if the share price goes down take the cash. Instead of going for 1 big lump sum I find this works better. Any pay rise you get will cover the next years £50. As I said I will always have one maturing from next till the end of my time with the company.
Report•Quote•Block UserIbrahima Sonko • April 21, 2018 9:13 AM BST
I am 5 at the moment, 3 years or 5 years and sips (share incentive plan, buy 1 get x amount free, the x keeps changing)

Even if you cannot afford the max, get a family member involved.
Report•Quote•Block UserPaddy Hair • April 21, 2018 9:20 AM BST
The thing is if you go for the max now, what do you do nest year if the share price is lower. I would look at split the max over the 3 years. You could keep cancelling every year if the price has gone down, but what if it recovers in the next year.
Report•Quote•Block UserAspro • April 21, 2018 10:58 AM BST
In reality very few workers could afford the maximum each month
Report•Quote•Block Userfronter • April 21, 2018 6:32 PM BST
Very rarely reduces in price
Report•Quote•Block Usercruso • April 21, 2018 8:25 PM BST
Put every penny you can in.
You answered your own question  3 years you have the option to buy..
If the shares have tanked ( very unlikely ) you take your money back.
If they are still only £2.40 in 3 years you`d have Your £12600 you put in  ( @ £350 a month ) plus £6600 profit.
If the share price does well skys the limit
Report•Quote•Block Useriamajambo • April 21, 2018 10:00 PM BST
As many have already said it's a total no brainer.When the max contribution was £100 per month my £5000 turned into shares worth in excess of £100K.Best decision I've ever made,apart from that of marrying my lovely wife,of course.
Report•Quote•Block UserIbrahima Sonko • April 21, 2018 10:21 PM BST
I was an apprentice when my first sharesave came out and could not afford much, i think it was £70 per month over 5 years, ended up at 20k when i went on holiday (mode) for 2 years. Yes i blew most of it as i was young.

Other workmates nearly became millionaires, their was an option the save and buy on the day, loads maxed out every credit they had, they made thousands, you could buy at £1.80 and the release price was £2.40. Today the shares have been by 1.9 divided and another company share within it.

Real value today is £14 x 1.9 and the other company, the other company got taken over by the germans, but was worth at least £10 at the sell.
Report•Quote•Block UserMcginty • April 21, 2018 10:49 PM BST
J Christ sop bragging about being lucky FFS!  Laugh
Report•Quote•Block Users.kenbo • April 22, 2018 7:21 AM BST
It's a coincidence that this thread has appeared. My missus got a letter through the door yesterday offering her the same thing (I think) from her firm. The most she's allowed each month though is £150. The letter says something along the lines of her getting shares at 80p each, while they're at 105p at the moment.

The advice given has been really helpful.
Report•Quote•Block UserPaddy Hair • April 22, 2018 7:40 AM BST
Do be aware the share price can go down. My 1st one due to mature in 2 years with a 20% discount I can buy them at £3.63, currently trading at £2.40. So I will just take my money back. But this year they will be on offer at under £2 so a must buy for me.
Report•Quote•Block UserRamruma • April 22, 2018 9:19 AM BST
Damn. This thread has just reminded me that I've missed my firm's deadline this year. There were two schemes on offer and I'd put the letter (well, email with a hundred pages of pdf legalese) to one side until there was time to figure out which one was best. Sad
Report•Quote•Block Userprepared83 • April 22, 2018 11:43 AM BST
Thank you for all your replies very helpful. I've decided im going to try and do the full £350 per month. Wish my luck
Report•Quote•Block Users.kenbo • April 22, 2018 8:41 PM BST
Good luck, Prepared. It sounds like you're making a wise decision.

I presume at those figures you'll pay in £12,600. That would then equate to 6738 shares. And at the price they are now they'd be worth £16,171.  Obviously they'll fluctuate in that time.

Am I correct with those figures, anyone?
Report•Quote•Block Userakabula • April 22, 2018 10:50 PM BST
You get interest added at the end of the period so probably slightly more shares than 6738 in the option.
Without interest your arithmetic is spot on.
Report•Quote•Block UserGin • April 23, 2018 12:12 PM BST
I can only agree with the previous posters and say that if you can afford it, it is a no-brainer.

My wife is in a 5 year sharesave scheme, with option to buy at 52.8p and currently worth 119p (due to a takeover).

It’s a no-brainer because even if your share price stays at 2.40 at the end of three years, its equivalent to putting your money in a bank paying 17% APR (you have to remember you are not putting the full amount in from the start – your last payment will be a month before you realise the gains).

Of course if the share price dips below then you haven’t lost anything except inflation slightly eroding your money – other posters mention that if the money is paid back then you earn interest on it – this wasn’t the case in my wife’s scheme so check the paperwork.

A few other notes-

You can stop payments and/or take your money out at any time during the three years but once you stop cannot start paying in again.

If you leave the company, you can no longer participate in the scheme unless you are termed a “good leaver” (ie redundancy/sickness).

If the company is taken over, the scheme may end and if this is the case then your gains are subject to Capital Gains Tax – although in your case unless the shares absolutely skyrocketed your gains wouldn’t be enough to attract CGT.

Not to be taken as financial advice - caveat Emptor etc.etc.
Report•Quote•Block Users.kenbo • April 23, 2018 6:17 PM BST
Thank you, Akabula.
Report•Quote•Block UserPaddy Hair • April 24, 2018 9:18 AM BST
The other thing to remember is if you pay the max of £350 a month, you will not be able to join any other Share Save Schemes for 3 years.
Report•Quote•Block Userprepared83 • May 8, 2018 4:00 PM BST
Just signed up for the full £350 a month, anyone interested in knowing the company so you can laugh when they plunge? ha
Report•Quote•Block UserDeltâ • May 8, 2018 8:20 PM BST
Report•Quote•Block Userjamesdean • May 8, 2018 8:31 PM BST
Report•Quote•Block Userbetting_masta • May 8, 2018 8:32 PM BST
if it's a good stable company, then do it. you're already getting a good deal and if the shares go up in value then you'll make money. drip money in every month and you could make a lot of money depending on how long you keep the money in there for and how well the company does in the next few years
Report•Quote•Block Userbreadnbutter • May 9, 2018 3:29 AM BST
Tesco ?
Report•Quote•Block UserCrisp77 • May 9, 2018 7:09 AM BST
Wernham Hogg?
Report•Quote•Block Userprepared83 • May 9, 2018 3:30 PM BST
I'm currently a baker at morrisons so its morrisons shares
Report•Quote•Block Userprepared83 • May 9, 2018 3:31 PM BST
my fixed price to buy in 3 years is £1.87
Report•Quote•Block Userdonny osmond • May 9, 2018 3:35 PM BST

The FTSE 100 has gained a little ground this lunchtime and is now trading up 29.95 points at 7,539.25.

Just Eat continues to lead the risers, with its share price up 4.06% at 805.5p.

Supermarket group Morrisons is now the biggest faller, down 2.10% at 238p, despite seeing its sales rise in the three months to April, according to Kantar Worldpanel.

The FTSE 250 is ahead 116.5 points at 20,401.55.

Virgin Money is the biggest riser, up 6.89% at 297.8p, after reporting a strong start to the year on rising mortgages and growth in savings deposits.

good luck prepared ! looks a decent punt
Report•Quote•Block UserDeltâ • May 9, 2018 3:56 PM BST
well if you got the dough, plough on, sure to rise Grin
Report•Quote•Block Userprepared83 • May 9, 2018 4:02 PM BST
very good delta Grin want to take a long term guess at the share price in 3 years?
Report•Quote•Block Userprepared83 • May 9, 2018 4:03 PM BST
cheers donny
Report•Quote•Block Userbreadnbutter • May 9, 2018 5:09 PM BST
When the light dusting of snow appeared a few months back the local branch ran out of everything in the "Bakery" upon inquiring as to why so the dude in the white suite and hat sayed "we is not really bakers ,it's all baked off site using cheap labour ,I is just a loaf warmer in a white suite "
Report•Quote•Block Userprepared83 • May 9, 2018 5:43 PM BST
Guessing you live up north?? As nearly all the stuff in my shop is made fresh on the day bud.
Report•Quote•Block Userbreadnbutter • May 9, 2018 6:23 PM BST
Report•Quote•Block Usermorpteh mackem • May 9, 2018 8:09 PM BST
prepared, yes its a good idea  you cant lose, me and mrs paid mortgage off 3 or 4 years ago with our companies sharesave scheme. both retired now and in early fiftiesCool
Report•Quote•Block UserPaddy Hair • May 10, 2018 10:48 AM BST
My TB Share Save ain't looking so good after todays news.
Report longbridge August 13, 2021 8:41 PM BST
Employee share-save schemes are a no-brainer if you have any cash to spare whatsoever, your only risk/downside is missing the 0.1% (if you're lucky) your bank or building society will pay on savings in return for being allowed, in 3 years time, to buy shares in your employer at 80% of today's share price.
Report prepared83 August 13, 2021 9:18 PM BST
Good find cider although not sure how you did that ha. Went back in not long
ago at 1.45 for decent money. Like you guys have said no brainer if you can afford it
Report Cider August 13, 2021 9:25 PM BST
The forum search still surfaces chit chat. Yes it's very plausible to borrow money at 0% to max out shareshave.
Report iamajambo August 13, 2021 10:31 PM BST
Could not agree more.
I used to work for the Wellcome Foundation and when the Trust turned them into a PLC in 1986 I opted to save the then maximum amount of 100 per month for the full five years. We were paid compound interest, circa 4% as I recall, so my 6k added up to circa 6600.

My option price was 1.29. I realised the full amount,of course, as at one stage the shares were trading at 22.

So my 6k turned into well in excess of 100k.

Smartest,or most sensible thing I've ever done, apart from marrying my lovely wifeLove ,of course.
Report ronnie rails August 13, 2021 11:05 PM BST
as you say a no brainer 3 months ago entain started a share scheme for its staff could buy the shares at 1240 today worth 1940, must be in for 3 years if they go to a fiver still  get 1240 if decide to sell. 100 max a month.

hope you are all well


Report dave1357 August 14, 2021 8:51 AM BST
Where I worked, one of them matured during a bit of a slump in the early noughties and the shares were worth about 20% less than the option.  So everyone just took their cash except for one lady who managed to tick the wrong box.  Though she's probably better off now as the shares bounced back and everyone else would have spent their cash on holidays etc.
Report Gin August 14, 2021 12:49 PM BST
Nice one prepared83! Glad to hear that it's worked out nicely for you.CoolHappyCoolHappy
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