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Furry Giraffe

Over-Invested In Employer Shares

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Over the years I've accumulated many shares in my employer - around £30K worth. I've also got 10,000 approved share options (at £1 below current share price) which I have to take by 2012 and a SAYE scheme which will mature with £10,000 in 2013

My remaining assets are cash - around £10K in cash-ISA and £10K in savings account

My only debt is a mortgage of around £200K @ lifetime tracker of boe base + 1.1% (i.e 1.6%). My LTV is probably around 50% bearing in mind the current house market.

Even though my employer is safe (doesnt depend on UK economy and established for over 120 years), and I fully expect the share price to rise next year, having kids is making me less of a risk taker. Having some much of my wealth (and income!) tied with my employer is clearly risky

So what to do? Those £30K shares have always paid good dividends (currently 6.5% gross) and saving rates are so far behind inflation

My thoughts were to sell off £15K of shares this finanical year (no CGT) and then next year invoke my options in a cashless exercise (again, avoiding CGT). The problem is I dont know where to put the cash... is there no way to keep your savings in line with inflation without taking risks?

Just some more info, I'm 39, married and a higher rate tax payer

Many thanks

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Over the years I've accumulated many shares in my employer - around £30K worth. I've also got 10,000 approved share options (at £1 below current share price) which I have to take by 2012 and a SAYE scheme which will mature with £10,000 in 2013

My remaining assets are cash - around £10K in cash-ISA and £10K in savings account

My only debt is a mortgage of around £200K @ lifetime tracker of boe base + 1.1% (i.e 1.6%). My LTV is probably around 50% bearing in mind the current house market.

Even though my employer is safe (doesnt depend on UK economy and established for over 120 years), and I fully expect the share price to rise next year, having kids is making me less of a risk taker. Having some much of my wealth (and income!) tied with my employer is clearly risky

So what to do? Those £30K shares have always paid good dividends (currently 6.5% gross) and saving rates are so far behind inflation

My thoughts were to sell off £15K of shares this finanical year (no CGT) and then next year invoke my options in a cashless exercise (again, avoiding CGT). The problem is I dont know where to put the cash... is there no way to keep your savings in line with inflation without taking risks?

Just some more info, I'm 39, married and a higher rate tax payer

Many thanks

Put the money into Blue Chip shares.

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You've evidently decided to reduce your holding - that's probably sensible. Though £30k isn't excessive if you have sufficient confidence, and you obviously have some level of inside knowledge by virtue of being a long-standing employee.

But whatever you keep of it should surely be moved to an ISA, unless perhaps your employer never pays a dividend!

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You've evidently decided to reduce your holding - that's probably sensible. Though £30k isn't excessive if you have sufficient confidence, and you obviously have some level of inside knowledge by virtue of being a long-standing employee.

But whatever you keep of it should surely be moved to an ISA, unless perhaps your employer never pays a dividend!

I do have alot of confidence in my employer (I am a below board-level director) but having greater than 60% of my wealth tied up in my employer just seems a bit risky now that I'm a married man with kids.

It's the dividends that make it hard for me to sell... they are just so good (6.5%).... now that NS&I index certs are gone the only way the keep up with inflation is to invest on the stockmarket.

I dont think I can move my shares into an ISA... we aren't listed on the stockmarket and company stock can only be held by employees (we have an internal transfer market twice a year to buy/sell shares)

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  • 144 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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