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Best strategy for share purchase scheme

  • 02-09-2019 12:04pm
    #1
    Registered Users Posts: 1,562 ✭✭✭ MyStubbleItches


    Hi folks, hoping for some advice here as I’m not 100% sure what’s the best strategy for me.

    I’m in a share purchase scheme at work. Currently holding shares with a value of approx €9.5k and the plan is to keep loading into each year, hopefully buying the max I can which would be approx. €9k per annum.

    We have a new mortgage of €200k, I’d like to all but clear this using the shares in the future. I understand they can go up/down but let’s presume they’ll gain by 1-2% per annum.

    I can’t get my head around whether I’d be better off to sell some each year to take advantage of the CGT allowance of €1270 and put the money on deposit or take my chances and leave them run.

    Any advice welcome.


Comments

  • Moderators, Business & Finance Moderators Posts: 7,834 Mod ✭✭✭✭ Jim2007


    Whatever about the rest, if the company goes south then you take a double hit - you job and your savings.


  • Registered Users Posts: 1,562 ✭✭✭ MyStubbleItches


    Jim2007 wrote: »
    Whatever about the rest, if the company goes south then you take a double hit - you job and your savings.

    Was hoping for some advice on the question asked. I’m a big boy now, I understand some basics already.


  • Registered Users Posts: 1,788 ✭✭✭ Cute Hoor


    IMO you should always avail of the CGT allowance, it's just a question of how.
    Selling a portion of your shares annually and pocketing the cash is one option. Selling a portion of your shares annually and buying them back later is another option.
    Selling a portion of your shares annually and buying other shares (diversifying your portfolio) is another option.
    Up to you really how to use it, but a no-brainer imo to use your CGT allowance.


  • Registered Users Posts: 1,562 ✭✭✭ MyStubbleItches


    Cute Hoor wrote: »
    IMO you should always avail of the CGT allowance, it's just a question of how.
    Selling a portion of your shares annually and pocketing the cash is one option. Selling a portion of your shares annually and buying them back later is another option.
    Selling a portion of your shares annually and buying other shares (diversifying your portfolio) is another option.
    Up to you really how to use it, but a no-brainer imo to use your CGT allowance.

    I think ideally I’d like to diversify. Given what the funds are to be used for eventually (all things going well) I’d be looking to invest in something low risk. I won’t have to make a decision for another 15 months or so but would seriously consider this option, possibly investing in an ETF.


  • Registered Users Posts: 363 ✭✭ TheWonderLlama


    If its employee shares, aren't shares taxed as income when you sell them?


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  • Registered Users Posts: 5,024 ✭✭✭ homer911


    If its employee shares, aren't shares taxed as income when you sell them?
    That depends on whether its a revenue approved scheme or not and how long you hold the shares for


  • Registered Users Posts: 1,562 ✭✭✭ MyStubbleItches


    homer911 wrote: »
    That depends on whether its a revenue approved scheme or not and how long you hold the shares for

    Yes it’s a revenue approved scheme so if I hold them for three years within the scheme I can sell tax free or take control of them myself.


  • Registered Users Posts: 851 ✭✭✭ bcklschaps


    Was hoping for some advice on the question asked. I’m a big boy now, I understand some basics already.

    Ouch!!

    A big boy maybe, but with a very thin skin. :rolleyes:

    BTW : I think Jim's advice was sage


  • Registered Users Posts: 1,562 ✭✭✭ MyStubbleItches


    bcklschaps wrote: »
    Ouch!!

    A big boy maybe, but with a very thin skin. :rolleyes:

    BTW : I think Jim's advice was sage

    What’s the point of your post? I came on to ask for specific advice, Jim’s response was to tell me what the worst case scenario would be. No real help at all as I’m aware of some basics around investing. It’s akin to warning me that if I leave the house in the morning I could get knocked down by a bus. If you have nothing useful to add then why bother at all? Threads are pulled off track by posters just popping in with pointless commentary.


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