ShareMarket? Should i do It?

Ralliart · 19-05-2008, 12:47 PM

hey guys, 2day i just got Mail from my Employer Woolworths Ltd about invition to buy Shares, i'm just wondering if you i should do it or not, i read the booklet already as soon as i got it , but it said that the tax thingy completely changes if i accept the offer, and shares in general, i don't want to end up like my dad

: ,

What do you guys think?

||| · 19-05-2008, 01:03 PM

i think you should do it.

T3ts50 · 19-05-2008, 01:04 PM

I think you need to go in a bit more detail. What do you mean about the "tax thingy". You are only taxed on shares once you sell them or receive dividends.

What happened to your dad?

Ralliart · 19-05-2008, 01:10 PM

Quote:

Originally Posted by T3ts50

I think you need to go in a bit more detail. What do you mean about the "tax thingy". You are only taxed on shares once you sell them or receive dividends.

What happened to your dad?

pretty much i will get less $ back and my dad is a share market mad looks @ it all the time, i don't want that to happen to me

davez104 · 19-05-2008, 02:36 PM

Quote:

Originally Posted by Ralliart

my dad is a share market mad looks @ it all the time, i don't want that to happen to me

So, you don't want to concern yourself with making money? I would give it a miss in that case. Who needs more money anyway?

What do you mean by "I'll get less back"? That doesn't make a lot of sense on it's own. There must be some advantage to buying shares through the company you are working for, are they salary sacrificing them or what?

**Burnout** · 19-05-2008, 03:16 PM

hit the link & Ask him.

http://www.fordforums.com.au/member.php?userid=32404

Duke · 19-05-2008, 05:44 PM

Based on your depth of understanding of the offer, and my depth of understanding of your question... I see no reason why you would do this.

If you understood what you were offered, or if you were able to explain it better - then maybe it'd be worthwhile mate.

BTW - if you're moving out in 11 days - on the 31st - you'll be very early... or is it tomorrow already? Bugger, I hope not, I had stuff to do to tomorrow... guess I'll have to do it yesterday then

Feathers · 19-05-2008, 08:56 PM

It's nothing special. I was given 75 shares for the 75th anniversary of the company and a further 264 later.

There is a catch though. The dividend goes back into paying off the loan to the company until it's either fully paid out, or you leave.

If you leave and don't pay out the loan, then the company will sell them on your behalf, and give you the profit, after the balance of the loan is paid.

That being said, mine were sold at the beginning of the month, even though I resigned from the company in January,a nd I got about $4600 after the $2000+ loan was paid out.

Woolies don't give you anything for nothing (no company will), so they're only doing it to benefit themselves.

During the time I had the shares the dividend was something like $24 a year.

Ralliart · 19-05-2008, 09:37 PM

Quote:

Originally Posted by Feathers

It's nothing special. I was given 75 shares for the 75th anniversary of the company and a further 264 later.

There is a catch though. The dividend goes back into paying off the loan to the company until it's either fully paid out, or you leave.

If you leave and don't pay out the loan, then the company will sell them on your behalf, and give you the profit, after the balance of the loan is paid.

That being said, mine were sold at the beginning of the month, even though I resigned from the company in January,a nd I got about $4600 after the $2000+ loan was paid out.

Woolies don't give you anything for nothing (no company will), so they're only doing it to benefit themselves.

During the time I had the shares the dividend was something like $24 a year.

Thanks Father for that Feathers very helpful

Ringo · 20-05-2008, 08:13 AM

When you can get a almost zero risk simple term deposit at a bank for 7.5% and more this share deal looks a little average and complicated.

My old man has retired to be a professional investor and even he has a swag of money parked in term deposits right now…..share market is a little volitile right now.

jonk · 20-05-2008, 10:03 AM

Quote:

Originally Posted by Ringo

share market is a little volitile right now.

Bit of a generalisation Ringo. In three weeks I've doubled my money on Innamincka Petroleum Ltd already. http://www.innapet.com.au/ If it goes over $4.00 by the end of the year, I've paid back the $100,000 loan for shares, that loan was meant to go for 30 years.

I'm know it's big timing myself, but even though it's almost like a glorified form of gambling, reading reports from all over the place reduces your chances of risk with shares. I just wish people wouldn't diss the idea of dealing in shares in any form.

Resource stocks are doing quite well. It's retail & banking that are in the pits. It's all about research. A lot of it.

uranium_death · 20-05-2008, 11:33 AM

My old man bought WOW and CBA in 1992 (or thereabouts), and he's laughing. He missed out on CSR though and regrets that.

You win some, you lose some.

Volatility is really only feared if you're a short term investor. If you're long term, you get them, put them away for a decade or two, then see what happens.

WOW offer DRP...take it. Compulsory investing, and your initial investment will grow. You won't get the cash in hand, but your shares will accumulate. Great for long term investment.

CBA have suggestions, and you can look up any share. Their "experts" will suggest whether you should buy, accumulate, hold, sell a portion, or sell the lot.
There is also Huntley's, which is in far greater detail, but isn't free.

Don't dive in head first...talk to somebody who has experience. But Woolworths is a safe investment long term.

Duke · 20-05-2008, 10:45 PM

There's no reason at all for this, but what the hell.... check out LNC - bought last year at 27c. Yes - the right resources are doing very well at the moment.

tempest · 21-05-2008, 01:47 PM

Speaking of resources - Gujarat NRE Resources has potential.

For the long term - Banks are rather undervalued...still.

Ringo · 22-05-2008, 08:25 AM

Owning and trading shares takes a little time, a little knowledge and a little bit of organisation and a filing cabinet.

It takes a little effort is my point plus has a bit of risk where as term deposit are simple to understand, easy to manage and paying 8%

For someone in Ralliarts position (not totally understanding Woolies employee share offer and asking people of FF for advice...) I figure that instead of buying shares to make money, he should just go with term deposits.

Low risk, fair return, easy to handle...

SNB05T · 25-05-2008, 06:34 PM

i got the same letter ralliart.
woolies when they weren't the money hungry company they've become ( go back 15 years) gave a heap of their employees mainly in dept management and above some shares for free ( my mother and brother got them as they're service manager and duty manager) and discounted rates to buy more if you wanted.

my understanding of the letter is that you choose to pay $500 or $1000 by salary sacrifice before tax each week until their paid for then they're yours.

what stopped me from getting them is, the crappy wage im on as a qualified baker/pastry chef will be even crapier and if i leave in a year when i finish my web design course for a better paying job before i pay for the shares i loose them and have to pay it back.

i may not have interpreted it correctly but thats what i read.