sell off your future for the fabulous price of...£80

[goinpostal]

On a purely financial point of view I think the shares are potentially a nice little earner, although as an investor in shares based products for many years, I also know the pitfalls. I see both the free shares and any I choose to buy myself as a long term thing of at least 5 years, with the added benefit of being able to sell my EPO shares when I choose and if the time is right. Plus the expected dividend of around 4% is pretty good, which is what long term share ownership is all about.

Thanks for the reply Robert. I can see where your coming from but your message is just one-sided, its pro-shares as far as i can see.

I don't think there is a "purely financial point of view" but if there is it still stinks. I did two days overtime in the last two months and made more than I'd make on shares next year. That's not what i call much of an earner.

What is going to be a tidy little earner for Britain's millionaires is when a newly appointed board of privatised Royal Mail slashes jobs, pension etc. Sure we'll get back 10% of that collectively, 10% of the 100% of savings we made. They'll get the other 90%. In other words we're going to lose big time so isn't the sensible financial decision to oppose privatisation, vote no, tell everybody to vote no, and in my opinion back it up by striking. Of course Royal Mail may well turn round and up their offer like they did after the Consultative ballot, we'll see.

Sure most posties will probably go for shares - especially since you have to do something to stop recieving them. And I know a couple of posties who are retiring soon and would appreciate a little "nest egg" of shares, but they also want to leave a legacy behind - of supporting their workmates who have years to go, and being remembered for their solidarity and comradeship we all shared in previous rounds of struggle and day to day at work, rather than being remembered for someone who sold all that away for tiny - not tidy - earner.

[borders]

spot on my friend , just have a little look back in time and read about all the sacrifices other working class people have made. terms and conditions we all enjoy today have been hard fought for in many cases.

[RobertT]

Thanks for the reply Robert. I can see where your coming from but your message is just one-sided, its pro-shares as far as i can see.

No it’s not pro-shares, it’s pro-reality! Barring an unexpected u-turn, we are going to be privatised so I want to make the most of what is going to be a bad situation. I think that applies to the majority of posties and makes perfect sense.

I don't think there is a "purely financial point of view" but if there is it still stinks. I did two days overtime in the last two months and made more than I'd make on shares next year. That's not what i call much of an earner.

The more shares you have, the more you’ll get in dividends, so maybe you should consider the EPO. lol

What is going to be a tidy little earner for Britain's millionaires is when a newly appointed board of privatised Royal Mail slashes jobs, pension etc. Sure we'll get back 10% of that collectively, 10% of the 100% of savings we made. They'll get the other 90%.

In the last few years thousands of jobs have already been lost and our pensions have already been reduced. Have we received any recompense? NO! At least under privatisation we will get something.

In other words we're going to lose big time so isn't the sensible financial decision to oppose privatisation, vote no, tell everybody to vote no, and in my opinion back it up by striking. Of course Royal Mail may well turn round and up their offer like they did after the Consultative ballot, we'll see.

I’ve already said that I’m against privatisation and I’ve never said that I was going to vote for it and I fully intend to strike if that’s what the CWU membership decide. Although the strike ballot only really refers to the pay claim and attached conditions anyway! I have no intention of telling anybody how to vote as everybody in my office is an adult and capable of making their own decisions.

Sure most posties will probably go for shares - especially since you have to do something to stop recieving them. And I know a couple of posties who are retiring soon and would appreciate a little "nest egg" of shares, but they also want to leave a legacy behind - of supporting their workmates who have years to go, and being remembered for their solidarity and comradeship we all shared in previous rounds of struggle and day to day at work, rather than being remembered for someone who sold all that away for tiny - not tidy - earner.

I fully respect the principles of anyone who opts out of the free shares, although I suspect it’s going to be a tiny minority and it isn’t going to make a blind bit of difference to anything, other than to their conscience.

As far as I know, nobody at my office of about 100 staff are going to refuse them as they know privatisation is going to happen whether we like it or not. Solidarity is great but there comes a time when you’ve got to think of yourself and your family and that’s why, as you say, most posties will accept them.

It’s a choice of get shafted with a least some recompense or just get shafted!

[Lounge Lizard]

Are shares lost if one reaches retirement age and so finishes work before the three years is up ?

[toomuchcoke]

Average employee's payout in 2014: £88.66
minus tax: 10% for dividends = £79.80

For anyone who isn't an upper or higher rate taxpayer, dividends are effectively tax free. If the Royal Mail is paying out (e.g.) 20p/share in dividends then you'd receive 20p per share you own. There is, sort of, a 10% tax on the dividends but the dividends themselves come with a 10% tax credit so there's nothing extra to pay (either by you or the company that's paying you), this also "explains" why 40% rate taxpayers only pay 32.5% on dividends as the tax credit wipes out the rest of their tax bill. (Wasn't it nice of that very-prudent Brown fellow to ensure we have a simple and easy to understand tax system? )

I think your figure of £86.66 is way off too. Everywhere else is taking about the yield on the IPO price being around about 6.5%, which for your dividend figure would mean a share holding around about £1333 in value. On the £2000-3000 figure that's being knocked around that's a dividend of £130-195.

Frankly 6.5% is "rather high" IMHO (but then it's being priced to sell), and I'd expect the price post-IPO to rise to bring that yield down to the 4.5-5% level, which would imply that our free shares would be worth rather more. Though it would be a paper profit that you could access for at least 3 years. (That said, I'm not planning on selling the shares ever. I'll just take the dividends and reinvest them elsewhere in my portfolio.)

[RobertT]

Are shares lost if one reaches retirement age and so finishes work before the three years is up ?

The bumf we all recieved says that you don't lose the shares if you retire. However it doesn't say what they constitute as retiring! Is it:
1) Reaching 60?
2) Reaching 65?
3) Reaching state pension age?
4) Having the means to give up work at another age?

So to answer your question, we don't know.

[Lounge Lizard]

Are shares lost if one reaches retirement age and so finishes work before the three years is up ?

The bumf we all recieved says that you don't lose the shares if you retire. However it doesn't say what they constitute as retiring! Is it:
1) Reaching 60?
2) Reaching 65?
3) Reaching state pension age?
4) Having the means to give up work at another age?

So to answer your question, we don't know.

And medical retirement ?

[RobertT]

I think your figure of £86.66 is way off too. Everywhere else is taking about the yield on the IPO price being around about 6.5%, which for your dividend figure would mean a share holding around about £1333 in value. On the £2000-3000 figure that's being knocked around that's a dividend of £130-195.

I believe goingpostal was referring to the first years dividend which only actually relates to about 8 months of the company being privatised. So £80-90 is about right.

[RobertT]

And medical retirement ?

You don't lose them if you get medically retired. I think page 23 of the big red book is the place to look for more info.