€300k shares in Kerry plc. Should I sell some to pay off tracker?

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The growth in a pension is tax free, if you have shares in a funds outside of a pension vehicle and sell them you are fully hit by CGT...
 
It's worth bearing in mind that the first €200k of pension lump sum is currently tax free and lump sums between €200k and €500k are taxable @20%.

Also, the over 65s have very generous tax credits (a couple with one spouse in this age bracket can currently earn €36k pa tax free) and they don't pay PRSI.

Put it all together and you would need to amass a pretty massive pension fund before any drawdown is taxed @40%.
 
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galwaypat said:
Thanks again for all the feed back. What we have decided to do is sell 600 shares and thats my money back and than put 3000 shares back in the drawer and leave them there for 10 years, all going well should have house paid off than as well with a small over payment, I will be 56 than and hopefully in good health and we will access things again.
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You are basically ignoring all the advice being given by this thread so? It's your money and your choice so that's fine but it's worth aknowledging to yourself that this is what you're doing.

I will add my 2 cents to everyone else's and say it's craziness to have so much exposure to a single stock.
 
If you get very sick and have to stop working, or God forbid, a terminal illness in the near future, what do you think you would do? I know we've all heard the phrase, "you can't bring it with you". Well, that becomes a reality for very healthy people every day, every single day and no one sees it coming. Putting the shares in a drawer and hoping to enjoy them in the future is one perfect way to make God laugh. The shares are over €93 today, don't look a gift horse in the mouth.
 
Noproblem thanks for your reply we do live it up a bit we have nice house and don't really need for anything. We are not very extravagant and live kind of conservative lifestyles, my parents didn't have much and were very conservative and thats the way I was reared so its hard to get in to spending mode, l worked in construction in the states in the 90s and used send money home and my mother started buying shares in kerry group and Irishlife and permanent for me at the time, don't ask me how she got that in to her head I will never know, she has passed on sense, I took a loss on ILP so I know what its like watching the bottom fall out of shares.
 
galwaypat said:
....I took a loss on ILP so I know what its like watching the bottom fall out of shares.
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In that case, have you still got the capital losses or did you use them up on something else ?

If you still have the capital losses, then that is yet another good reason in support of selling more of the Kerry shares now, given you could offset the losses to get more of the sale proceeds tax free.

Nothing personal, but I think you are absolute insane to have so much of your wealth tied up in one single share, no matter what company it is. It simply defies belief that you would have all of your eggs in one basket, sort of speak. Clear your debt, then diversify some of what is left into other sensible investments (through your pension or otherwise, as appropriate) for the long term. If you are unsure as to what to invest in, there are plenty of places you can get some good advice. If you are spending more than you are earning each month, then that's an entirely different issue to address :)


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galwaypat said:
Thanks again for all the feed back. What we have decided to do is sell 600 shares and thats my money back and than put 3000 shares back in the drawer and leave them there for 10 years, all going well should have house paid off than as well with a small over payment, I will be 56 than and hopefully in good health and we will access things again.
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Sorry to be blunt, but this is not a good decision.

You should sell the shares. What you do after that, pay off mortgage, invest in a broad based equity fund or a pension is secondary.

You have not been well served on this thread by all the discussion of mortgage vs investment, pension vs no pension. These are secondary issues. Sell the shares.

If you leave the shares or most of them in a drawer for 10 years I dont know if your profit at the end will be more or less that if you sell them. I do know that your risk will be much greater.

Why are you keeping the shares. I suspect it is because you don't want to take the responsibility to make a decision about what to do with the €300k. Thats not good enough, in terms of your responsibility to yourself and your family.
 
galwaypat said:
I have 3600 shares in kerry group which are really good at the moment up around 88 euro mark, I have 74000 euro tracker at 1.15 % left on my home worth about 250000 15 years left, we are a single income family with 4 kids it can be a bit tight at times, I do sell a few shares around Christmas to have a nice Christmas and to use up our tax allowance, no pension or any other investments. OH thinks we should pay off mortgage, all eggs in 1 basket that sort of thing but I am a big believer in kerry.your thoughts please thanks
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OP,

I would :

(1) Sell enough shares and immediately pay off the mortgage

(2) Sell a few more shares and throw a big party !
 
moneymakeover said:
A good share is with keeping

I applaud the OP

https://www.investopedia.com/ask/an...ion-protection-against-ignorance-it-makes.asp
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This is laughable. You have no idea what you are talking about. Or more likely you are just trying to get a rise out of us.

The OP did not buy shares in Kerry because he understood their potential. His mother bought them, together with ILP shares which are now worthless, without his even knowing.

My New Years resolution is not to respond to these goads.
 
The OP did not buy shares in Kerry because he understood their potential. His mother bought them, together with ILP shares which are now worthless, without his even knowing.
QUOTE creamegg

Well just to clarify in case my 9 siblings are looking in, yes she bought the shares in my name with the dollars I was sending home in the early nineties, she was a very proud kerry women , I was an illegal alien in New york at the time working in construction and living in a box room there was just room for the double bed.
 
@galwaypat

I'm not having a pop but do you think there is a possibility that you are emotionally invested in those Kerry shares, maybe to a point that's blinding your judgment?

After all, you worked damn hard for the money that was used to buy those shares and that's where your proud Kerry mother chose to invest your cash. Nobody would blame you for placing a special value on those shares over and above their intrinsic monetary value. I certainly wouldn't.

But at end of the day they still represent a share in the stock of a single company. However highly you might think of that company its fortunes are far from guaranteed.

Would you take out another home loan to buy more shares in Kerry? If you wouldn't then the logical side of your brain should be telling you what you should be doing here.

My advice - sell enough shares to clear your mortgage and then start contributing to a pension if you haven't already. Financially, for your family, that's the smart move.
 
moneymakeover said:
A good share is worth keeping

I applaud the OP

Thank you moneymakeover although I had no part in picking the shares I did choose to hold on to them, I could have sold them several years ago when I bought my first house, and even during the recession when work was tight but I didn't, they turned out to be a good decision, so I am confident that I can make a call on this and live with it. Its going against all on here 90% say to sell and only yourself 10% say to hold, time will tell I will bump this one again in 10 years if we are still about.
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