selling or keeping

taurus88 · Post by **taurus88** » 09 Oct 2016, 21:30

norm wrote:It's unlikely, but if you wait to sell, potentially the share price could drop 33% from the 485p it is now in two years time so any savings you would have made from NI/tax would be negated. Something to consider.

Although another thing to consider is the value of any dividend(s) one might receive in those 2 years, in terms of analysing the potential risk and reward. Given the extent that Royal Mail is going to to save money and deliver greater profits, I'd be surprised if the value of the company plummeted dramatically within the next 2 years. But that doesn't mean that it's impossible - my faith in the great leaders above is ... questionable.

Darren Bent · Post by **Darren Bent** » 09 Oct 2016, 22:41

even the shares go down 33% you still get about 300 pounds in dividend (Assuming we get 75 pounds each dividend on average).

I think we are better off leaving it alone and save it up for rainy day ie when it is time to replace the car or whatever.

Nondescript · Post by **Nondescript** » 09 Oct 2016, 23:32

Darren Bent wrote:even the shares go down 33% you still get about 300 pounds in dividend (Assuming we get 75 pounds each dividend on average).

I think we are better off leaving it alone and save it up for rainy day ie when it is time to replace the hip or whatever.

Fixed that for you

toomuchcoke · Post by **toomuchcoke** » 09 Oct 2016, 23:37

wandle wrote:Those 'ghost' shares were not shares at all. It was a profit-sharing scheme that Allan Leighton labelled Colleague Shares, in a deliberate attempt to mislead people into believing they were getting proper shares, like the ones that we now - ironically - actually have.

I was always of the opinion that the whole "Colleague Shares" thing was also designed to soften people up with regards to an eventual privatisation ... Such a pity that they did it in such a cack-handed manner that it had precisely the opposite effect for many people!

2pints · Post by **2pints** » 10 Oct 2016, 08:24

IloveMYredTROLLEY! wrote:https://www.esp-portal.com/1/EPortal/rm ... Login.aspx will tell yu your personal fortune after registering.

The first and biggest wave of shares become technically ours this coming week, but if you sell that wave within the two years afterwards, you will have Income Tax and national Insurance contributions deducted (~33%).

Sorry but 33%? Did you pull this figure from your ass?

crazyshrew · Post by **crazyshrew** » 10 Oct 2016, 08:56

2pints wrote:
IloveMYredTROLLEY! wrote:https://www.esp-portal.com/1/EPortal/rm ... Login.aspx will tell yu your personal fortune after registering.

The first and biggest wave of shares become technically ours this coming week, but if you sell that wave within the two years afterwards, you will have Income Tax and national Insurance contributions deducted (~33%).
Sorry but 33%? Did you pull this figure from your ass?

Barring any special circumstances, we are taxed at 20% of income over £11,000 (about £210 p/w) and pay class 1 NI at 12% on earnings between £155 and £827
so a 33% figure is pretty damn close.

royalmailslave · Post by **royalmailslave** » 10 Oct 2016, 17:03

Im sure this has been done to death...but as someone who intends on cashing in the shares when they mature on Saturday...can someone tell me how exactly i do this...

And how long are we expected to wait until the money drops into our accounts..

Thanks in advance

Post by **TrueBlueTerrier** » 10 Oct 2016, 17:51

royalmailslave wrote:Im sure this has been done to death...but as someone who intends on cashing in the shares when they mature on Saturday...can someone tell me how exactly i do this...

And how long are we expected to wait until the money drops into our accounts..

Thanks in advance

All the answers are in this thread so moved your post into here.

pilch · Post by **pilch** » 11 Oct 2016, 10:21

jetblack wrote:Its a no brainer to hold.

That being said, if enough are desperate enough (or daft enough) to sell, it will in all likelihood present a decent buying opportunity for some (including myself - sorry )

Down to 482 today - could go to perhaps 460 with a sell off over the next few weeks. Might place a buy limit at 465. Sell at 515 within a couple of months. 11% in 3 months would be very nice indeed.

Thats the theory anyhow.

Now - whats 11% of £75 ?

i used to work for rail track and we went through the same share thing when privatised

i sold my free shares on day 1 and paid the tax etc

the smart ones who keep them for another couple of years ended up with virtually nothing as they went bust

just a thought

I'm selling again

yes, they will probably be worth more in a year or 2

but its not a guarantee

nigelbeans · Post by **nigelbeans** » 11 Oct 2016, 18:37

I was thinking it's a no-brainer - keep them because I don't need the money. I've had a change of heart though. I'm really tempted to sell them and use the money to attempt to gain value by other means. There are certain things which I think will do well over the next few years, so I'll put some there. The rest I'd like to use for online poker... maybe I'll come back to the forum in two years with an update!

Post by **TrueBlueTerrier** » 12 Oct 2016, 15:24

nigelbeans wrote:There are certain things which I think will do well over the next few years, so I'll put some there.

If you can make the 32% hit back within a year or 2 any chance of giving us all a clue

barneyrotts · Post by **barneyrotts** » 12 Oct 2016, 17:41

Todays value after tax etc is £2065 at close of trading.

Fiadhluckycharm · Post by **Fiadhluckycharm** » 12 Oct 2016, 20:29

According to a collegues financial advisor we will not be paying n.I on the shares and might not be paying the tax % as informed.I'm confused.What do we have to do if we decide to sell?

Post by **aiden01** » 12 Oct 2016, 21:12

Fiadhluckycharm wrote:According to a collegues financial advisor we will not be paying n.I on the shares and might not be paying the tax % as informed.I'm confused.What do we have to do if we decide to sell?

not a great financial adviser is he unless he thinks we have had the shares for 5years. you will definitely pay 20% tax and 12%ni if you sell before 5years are up.

wandle · Post by **wandle** » 13 Oct 2016, 01:28

TrueBlueTerrier wrote:
nigelbeans wrote:There are certain things which I think will do well over the next few years, so I'll put some there.

If you can make the 32% hit back within a year or 2 any chance of giving us all a clue

Yes, I'd like to have an investment that grew that quickly.

However, please note: approximate value of 613 RM shares sold now, and paying tax, is £2000
Approximate value of 613 RM shares in 2 years time, even if the share price is exactly the same: £3000

So, in fact nigelbeans would have to find an investment that grows by 50%, just to get the same amount back as us that continue to hold onto our shares.
Or one that grows by 64%, if one adds-in the approx £271 in dividends we'll get that he won't

Or by 100% if one counts the dividends and if the RM share price has risen to 609p in October 2018

ROYALMAILCHAT