Is it a good idea to invest additional money in an employee share ownership plan

[seaview]

Do you think its a good idea to invest additional funds from savings which are not earning much interest into an employee share ownership scheme in addition to the annual bonus received for tax purposes?

 

[Palerider]

It depends on the company, I did for years when I worked for one of the Banks then watched it disappear in the crash. I suggest you would consider this if you were staying long term with the company.

I would not do it if it were a small company.

 

[seaview]

It is a large multi national company. Thank you for your advice.

 

[Monbretia]

I did for years when I worked for one of the Banks then watched it disappear in the crash

So true! Gone in a puff of smoke, so sorry I didn't spend my money every month instead of saving it

 

[cremeegg]

The simple answer to the question is, no.

You should diversify any investments away from your employer.

 

[SreudianFlip]

Is there a benefit of additional 'free' shares or are the shares subsidized?
Is it once-off or recurring (e.g. monthly)?
Do you mind preparing tax returns (income tax for dividends, capital gains tax return for profits/losses)?

With share-matching/subsidized shares it can be a very lucrative and low-risk savings scheme. .

 

[Steven Barrett]

The simple answer to the question is, no.

You should diversify any investments away from your employer.

I agree. Savings and income should not be reliant on the same company. It being a large multinational isn't a safeguard. Look at Enron, Bear Sterns, Lehman Brothers. Reinvesting bonuses into company shares was seen as a sign of company loyalty. See where that got them...out of work and their savings all gone!


Steven
www.bluewaterfp.ie