By: Stock Street

Stock Street — Mon, 05 Mar 2018 04:37:02 +0000

Great topic, Robert! Back when I worked as an advisor, I saw success in this for clients but also saw some people get way too focused. I like how you included the section on diversification. It is important to not have 100% of your money in your company stock of course. Also, buying at a discount is great, but definitely still need to try and figure out if the company is undervalued or overvalued. Thanks for the article.

By: PK

PK — Fri, 02 Mar 2018 15:10:42 +0000

Nice overview. I’ve had success and have also been burned by ESPP. In general, the standard 15% discount is often the biggest incentive. If you are on top of everything, you can get a near 15% return. The downside is that you do need to watch what is going on in your company as a whole. If the company is entering a bad time financially, you had better be aware and opt-out of participation or at a minimum, sell your vested holdings. Don’t try to hold for the long-term gains tax, take the hit on income tax levels. Hindsight being 20-20, I missed the signals once and then in the middle of a downslide, I was also laid-off. Needless to say, I ended up losing money because I was holding and not paying attention.

Comments on: Ultimate Guide To ESPPs (Employee Stock Purchase Plans)

By: Stock Street

By: PK