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[tunnie]

Are they worth it?

From what I can see you can't loose, I'm being offered shares at 20% discount to current value. You choose to pay in anything from £5 to £250 a month for 5 years.

At the end of the 5 years, the money you saved, buys you shares at the rate agreed now.

Even if the shares go down you get your money back plus a little interest, but has the possibly to make a fair bit  if the share price goes up.

I think old Rupert will make another bid for Sky in a couple of years, so I think its worth a punt at £50 per month, which would be £3k + any profit from shares  :-/

[Richie London]

theres always a risk with shares but as you dont get them for 5 yrs there is no loss i would say and still guaranteed your money back. if you can afford 50 a month its still putting a bit aside and guarenteeing you 3k savings. sounds good to me

[tunnie]

Thats what I was thinking, make a nice little fund for the future. 

[Richie London]

Thats what I was thinking, make a nice little fund for the future. 

deposit on a nice new bike, or engagement ring for the g/f 

[geoffr70]

I don't want to sound condascending, many of you are older than me. One thing I've learnt is the old cliche is true, nothing is guaranteed except death and taxes. There's too many deceiptful people and companies out there ready to take your money, and if if looks too good to be true it probably is. Id say check the small print very carefully

[hercules]

Thats what I was thinking, make a nice little fund for the future. 

deposit on a nice new bike, or engagement ring for the g/f 

theyve been seeing each other for a while now richie,i wouldnt be surprised if he hasnt bought geoff a ring already

[aaronjb]

The share scheme where I work is nowhere near that advantageous, but I'm still putting in ~£550 a month..

In our case the purchase period is every 6 months, at a 15% discount from the lowest of either the opening or closing price of the 6 month period. Of course you do pay income tax on the profit made at the point of purchase, which hurts a little (as it comes out of the paycheque immediately after purchase, whether you've sold the shares or not!).. e.g. if I buy at $68/share but the market value is $80 then I pay income tax (at 40%) on $12 per share.

Not too bad at the moment (the share price is low) but when we bought at $80 and the share price was $140, it stung a bit!

Right now I'm treating them as short term investments - as it seems you would be - and selling them as soon as I get them (the NASDAQ is going up & down like the proverbial whores drawers) so there is very little risk involved at all, financially. Unless the stock market implodes in the ~3 days it takes for the shares to vest and become sellable, of course..

[Gaffers]

Thats what I was thinking, make a nice little fund for the future. 

deposit on a nice new bike, or engagement ring for the gb/f 

Fixed that for you

[tunnie]

I don't want to sound condascending, many of you are older than me. One thing I've learnt is the old cliche is true, nothing is guaranteed except death and taxes. There's too many deceiptful people and companies out there ready to take your money, and if if looks too good to be true it probably is. Id say check the small print very carefully

Its a staff scheme at Sky, many of my colleagues have done it and done very well out of it.

Cheers Aaron, useful information there   

[Richie London]

Thats what I was thinking, make a nice little fund for the future. 

deposit on a nice new bike, or engagement ring for the g/f 

theyve been seeing each other for a while now richie,i wouldnt be surprised if he hasnt bought geoff a ring already

i was unaware there was a forum romance going on, just hope they can make a go of it then. 

[I_want_an_Omega]

I have experience of these schemes - they are excellent. Put in the maximum you can afford for 5 years and then pay a big wack off your mortgage.

Make sure you understand any capital gains issues  - but even so it's an excellent form of saving with no downside as you can opt out @ the end & get all your money back - i.e. you dont HAVE to but the shares @ the end of it.

[Richie London]

working for agencies i usually get money stopped from my wages for a third party to do my wages, have to pay liability insurance even though i have that myself, and qualify for holiday pay under govt law which i never get as they lay you off usually a week before the qualifying time then re contract you after.
never any perks or bonuses. most of the time have to pay my own digs money working away, its a great life being self employed.   

[tunnie]

I have experience of these schemes - they are excellent. Put in the maximum you can afford for 5 years and then pay a big wack off your mortgage.

Make sure you understand any capital gains issues  - but even so it's an excellent form of saving with no downside as you can opt out @ the end & get all your money back - i.e. you dont HAVE to but the shares @ the end of it.

Cheers, I'm going to go for it. Although I could actually afford what Aaron puts in now, i won't be able to later on, so I think £50 is a nice amount as who knows whats going to happen in a couple of years.

[aaronjb]

Make sure you understand any capital gains issues  - but even so it's an excellent form of saving with no downside as you can opt out @ the end & get all your money back - i.e. you dont HAVE to but the shares @ the end of it.

Oh yes, forgot about capital gains! Largely because I've not made big enough gains to fall into it, but Tunnie might over a long period like that..

As I understand it (for my scheme, sounds like yours would be similar, Tunnie):

I pay income tax on the 'profit' made when the shares are bought and given to me - e.g. the difference between $68 and $80/share as I mentioned earlier.

If I then hold on to those shares for (say) two years and they rise to $140 a share, I'm now liable for capital gains tax on the additional profit - the difference between $80 and $140/share.

There's a capital gains allowance though - http://www.hmrc.gov.uk/rates/cgt.htm#1 - currently £10,100 of profit per year (not the sale price, but the profit between $80 and $140 - remember I've already paid income tax on the profit between $68 and $80 at source).

Complicated much?

[tunnie]

actually, shockingly I do understand most of it 

Mate did very, very well out of it. He bought lot of shares at just £2.80, sold them at the peak of the Rupert bid for £7.20!