Moving shares from employer's broker to a different stockbroker

D

deeds75

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Hello,
I am looking for some advice. I am currently facing redundancy due to restructuring and have been informed that I need to either 1. move my company bought shares from EquatePlus to a private broker or 2. sell all. If I sell all I will be facing a tax bill as the shares have increased in value quite a bit in the last year, so I am inclined to hold on to the shares, and sell some each year keeping tax outlay to a minimum. The company is doing quite well and as I said i am being made redundant due to restructuring.

So I am seeking advice on the best stockbroker options available in Ireland - I dont plan to be buying anymore shares and just holding these shares and selling them from time to time. I am thinking of DEGIRO, Interactive Brokers due to the low transaction costs. Is there anything else in terms of costs etc I should be considering. Any advice is greatly appreciated.

Thanks,
deeds75
 
I had the same challenge. Moved them all to DeGiro. No issues since then
 
deeds75 said:
If I sell all I will be facing a tax bill as the shares have increased in value quite a bit in the last year, so I am inclined to hold on to the shares, and sell some each year keeping tax outlay to a minimum.
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A lot of people end up with a substantial holding in their employer's company and so their portfolio is too concentrated i.e. too many eggs in the one basket.

If the amount is material, you should should sell them down and take the tax consequences unless the CGT disappears after a set holding time.

Brendan
 
Agree with first point & that was certainly the case with mine, but I held & glad I did as the stock rose 60% within 2 years.

So there are other variables like growth prospects/dividend yield/investment alternatives to consider before selling ?
 
banchang said:
Agree with first point & that was certainly the case with mine, but I held & glad I did as the stock rose 60% within 2 years.

So there are other variables like growth prospects/dividend yield/investment alternatives to consider before selling ?
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Equateplus allow you to keep your account active 3 years after leaving your current employer…this was in my case (changed employer in the last 12 months or so)…I’m currently running down my share holdings. The reason behind it I’d imagine is that if you purchase shares via EPS it takes 3 years before they all become available (not subject to income tax)…
 
banchang said:
Agree with first point & that was certainly the case with mine, but I held & glad I did as the stock rose 60% within 2 years.

So there are other variables like growth prospects/dividend yield/investment alternatives to consider before selling ?
Click to expand...
In my opinion, a, or maybe the, key question is ... if you had the equivalent cash in hand would this company's shares be what you would be prioritising to buy as part of your overall investment strategy, or are you holding them simply because they're available via the company's employee stock incentive schemes? If the answer is yes (or yes/yes) then you should most likely sell and, if necessary, reinvest elsewhere. In the case where (unlike the original poster) you remain an employee of the company then concentrating risk by investing in the company that also pays your remuneration is probably not generally advisable. Stuff like "growth prospects" is meaningless given that nobody can predict the future and shares with decent liquidity should always be fairly priced by the market on the basis of all currently available public information.
 
Growth prospects is meaningless? Really ? The point is it may be priced in, but if it’s a legacy business where it’s clear that things will look very different in 10 years time (eg oil, & certain retail, where business models shifting to online), notwithstanding that this is priced in now, it’s likely that in 5-10 years time the stock will not be anywhere near todays price, so perhaps a good time to consider alternatives.
 
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