Best way to sell company shares?

TwistedKestrel

TwistedKestrel

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Since GTAM knows everything... I recently left Rogers where I was participating in the company stock buying plan. I'm pretty happy with the results, but I'm wondering what the best way to sell them is, being somewhat ignorant of the fine-grained details of owning stock. Ideally I guess I'd be selling the shares over a two year period (starting soon) and doing so 3-4 times a year, shortly after the ex-dividend dates. The company automatically reinvested dividends back into more shares, and they offer a plan to do that for "regular" shareholders - seems like a good idea to sign up for it. (http://www.rogers.com/web/Rogers.po...dendsReinvestmentAction&_pageLabel=IR_LANDING)

One option right from the company/Manulife is to sign up for a non-registered savings plan. The details are ambiguous, every time I sell shares I'd be looking at a fee that I'm guessing will be $20-40. It seems another option would be to sign up with an online broker, appears to be $5-10 per trade depending on who you go with, and not really sure if there are other fees on top of that. There could be other options, I dunno, maybe involving putting the shares in a TFSA but still withdrawing/selling them from there, getting the certificates mailed to me and stuffing them into my mattress, or trying to sit through a conversation with a financial advisor.

Laugh at me if you want for asking here, but I know there's people here that can offer insight on pretty much anything. Thanks for the advice, slurs, and embezzling attempts!
 
I send my shares (bell) to my financial adviser then he can deal with them,I have heard you can barter with them,maybe trade them for a used bike?I know from the past any sales of shares will go on your taxes if there is a capital gain.
 
This is a tricky question.


It depends where the shares are. It seems that you are with Manu-life, in my opinion this is bad. That means that you have an account and Manulife owns the shares in trust for you basicly. The shares are not registered to you. The shares need to be registered to you to take part in the free Dividend Re investment plan DRIP.

I have several DRIPs set up with various companies. Selling the shares like this is kind of a hassle but is doable.

For Me I have DRIPS - registered to me. Plus I have accounts with TD Waterhouse. From there when you sell there is a fee for exacting the trade.

Option 1
Leave with ManuLife - pay their fee when you sell,

Option 2
Have ManuLife Transfer to YOU. You will get a certificate, then you will need to do paperwork to get the DRIP activated and some paperwork to sell shares.
This option is the most difficult to manage, but is likely the cheapest.

Option 3
Open discount brokerage account with your bank and transfer shares there
This option is the easiest it will link to your debit card and be in website. It may be expensive in fees.
 
The shares are currently with Manulife, you are correct. This is how the stock buying plan was set up - I need to inquire whether the current re-investment plan would continue to apply (not the DRIP) if I kept the shares with them. I'm figuring that leaving the shares with them is probably not a good option, unless I had no plans to do anything with them for a year or two.
 
nearace said:
I send my shares (bell) to my financial adviser then he can deal with them,I have heard you can barter with them,maybe trade them for a used bike?I know from the past any sales of shares will go on your taxes if there is a capital gain.
Click to expand...

I'm not looking to dodge capital gains tax, and it's not going to be that bad anyway. The value of the plan comes from the company's contributions, not an increase in share price, and I was already taxed on the company's contributions as income.
 
If the shares are being held by Manulife and the dividends reinvested on your behalf, you are a registered shareholder with a dividend reinvestment plan (DRP). You could have your holdings transferred to another institution. Many people choose to open an investment account where they bank. There are good and bad things about that, especially with the number of people that open accounts with the discount branch because they don't believe they need the exptertise of a financial advisor.
In this case, you're looking to do one thing. If you don't plan on doing a lot of trading, and you really just want somewhere to put the shares so that you have easy control over them, I would suggest the two main options are to either
(a) leave them where they are and sign up for the DRP (if it was discontinued when you left the employ of the issuer), and when you wish to sell any you'll pay Manulife's fees; or
(b) open a TFSA or RSP at another insititution and have your shares transferred. You may be able to simply transfer the shares, then sign up for the DRP through your new broker.
Keep in mind there will likely be fees for all of that - except from Rogers. Isn't that hoot? They also may have to make some adjustment for partial shares - but Rogers or the transfer agent for Rogers could help you with that.

So if you choose option B, you should talk to the institution (you'll likely end up with your bank) and see how much of it they'll do for you. If you have to do it yourself, talk to Rogers Shareholder Services, or Computershare Investor Services (the transfer agent) at services@computershare.com. Just ask what you asked us.
M
 
Shares of rogers probably shouldn't go into a TFSA. its not tax efficient.

Cheers.
 
OpenGambit said:
Shares of rogers probably shouldn't go into a TFSA. its not tax efficient.

Cheers.
Click to expand...

Thanks for bringing up a good point, I just realized I don't understand how the dividends would be taxed, just trying to read up on it now but I hurt my brain. Definitely something to keep in mind, but it looks like you are likely correct.
 
Is the account with the Rogers shares in at Manulife: a registered account or a non-registered account?

Also since you have left Rogers, I doubt much that Rogers will contribute any more to this account. You of course are still eligible to get the DRP, but that's true wherever you have the shares on account. That would be a feature of the shares themselves, not where they are held.

Any gains from here on should only be dividends +/- capital gains/losses.
 
johnp said:
Is the account with the Rogers shares in at Manulife: a registered account or a non-registered account?

Also since you have left Rogers, I doubt much that Rogers will contribute any more to this account. You of course are still eligible to get the DRP, but that's true wherever you have the shares on account. That would be a feature of the shares themselves, not where they are held.

Any gains from here on should only be dividends +/- capital gains/losses.
Click to expand...

Rogers will not be contributing any more to the account, that ended with my employment. I am not contributing to the account anymore myself.
 
TwistedKestrel said:
Thanks for bringing up a good point, I just realized I don't understand how the dividends would be taxed, just trying to read up on it now but I hurt my brain. Definitely something to keep in mind, but it looks like you are likely correct.
Click to expand...


If I was wrong about something like this I would shoot myself.

Dividends in Canada receive a tax credit, the tax credit is to simulate the tax that the corporation already paid, to avoid double taxation. you lose this credit if the shares are in a TFSA.

From a tax efficiency perspective, fixed income securities ( interest) should be held in a TFSA, Canadian dividends non registered, foreign dividends likely RRSP ( assuming the existence of a tax treaty covering retirement plans )

That being said, there are good, non tax reasons to hold something else in a TFSA, probably because your marginal tax rate is low, or if interest bearing securities aren't really your thing, of if you want to gamble on growth. but thats a long post and I don't have time for that.
 
TwistedKestrel said:
Rogers will not be contributing any more to the account, that ended with my employment. I am not contributing to the account anymore myself.
Click to expand...

Thanks. Do you know if it's a registered account, or not?
Typically these are locked-in RSPs - but not always.
 
OpenGambit said:
If I was wrong about something like this I would shoot myself.

Dividends in Canada receive a tax credit, the tax credit is to simulate the tax that the corporation already paid, to avoid double taxation. you lose this credit if the shares are in a TFSA.

From a tax efficiency perspective, fixed income securities ( interest) should be held in a TFSA, Canadian dividends non registered, foreign dividends likely RRSP ( assuming the existence of a tax treaty covering retirement plans )

That being said, there are good, non tax reasons to hold something else in a TFSA, probably because your marginal tax rate is low, or if interest bearing securities aren't really your thing, of if you want to gamble on growth. but thats a long post and I don't have time for that.
Click to expand...

The tax on the gains would not likely be a factor to consider, and you've already addressed the dividends. If it were me, I would likely be putting them into an RSP account to get the added bonus of the contribution for the year. I suggested the TFSA as an alternative to an RSP account simply for the access to the funds. If the OP hasn't contributed to the TFSA, there's no concern about taxation at all that way. But it's also been mentioned that this may already be a registered account - how was Rogers' contribution to the plan taxed?
 
I'm employed at one of the companies mentioned so won't say anything here in the thread but I can sort the best way out if you PM me.
 
It was not an RSP, I was taxed on Roger's contributions as income.
 
QUOTE=TwistedKestrel;1894704]Since GTAM knows everything... I recently left Rogers where I was participating in the company stock buying plan. I'm pretty happy with the results, but I'm wondering what the best way to sell them is, being somewhat ignorant of the fine-grained details of owning stock. Ideally I guess I'd be selling the shares over a two year period (starting soon) and doing so 3-4 times a year, shortly after the ex-dividend dates. The company automatically reinvested dividends back into more shares, and they offer a plan to do that for "regular" shareholders - seems like a good idea to sign up for it. (http://www.rogers.com/web/Rogers.po...dendsReinvestmentAction&_pageLabel=IR_LANDING)One option right from the company/Manulife is to sign up for a non-registered savings plan. The details are ambiguous, every time I sell shares I'd be looking at a fee that I'm guessing will be $20-40. It seems another option would be to sign up with an online broker, appears to be $5-10 per trade depending on who you go with, and not really sure if there are other fees on top of that. There could be other options, I dunno, maybe involving putting the shares in a TFSA but still withdrawing/selling them from there, getting the certificates mailed to me and stuffing them into my mattress, or trying to sit through a conversation with a financial advisor.Laugh at me if you want for asking here, but I know there's people here that can offer insight ch anything. Thanks for the advice, feel free to pm me, i
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