Have an Employee Stock Purchase Plan? Don't Make This Mistake.

Have an Employee Stock Purchase Plan? Don't Make This Mistake.

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[ClaudiaShenk]

I think it's important to stick to stocks that are immune to economic policies. I'm looking at NVIDIA and other AI stocks. It seems AI is the trajectory most companies are taking, including even established FAANG companies. Maybe there are other recommendations?

[raymondbarnes]

The markets are still unsure if the Federal Reserve will continue to its plan to raise interest rates until inflation is under control, despite the fact that bond yields are rising while stock prices are falling. What is the greatest strategy to take advantage of the current bear market while I'm still deciding whether to sell my $401k worth of stocks?

[sitheguy]

Great and informative intro to ESPP here. I’ve recently started with a company that does this (after 11 years in one that didn’t) and currently trying to work out my best approach to maximise this benefit.

Thanks again, off to find more videos from you both!

[cybrainx]

Only correction I would make is.. make sure you hold on to ESPP till it becomes Qualifying disposition. That can save you significatnly on taxes.. stock was going up through the enrollment preriod.

[amesasw]

Only downside is holding for a year you may gamble away that 15% discount if the stocks are down when you go to sell. Then if you lost your 15% or more you have to either stick to your plan or play the market timing game....

If you sell on the spot you bank your discount. If that money should really have been invested you can take the full cash out and invest it.

But I will say i have worked at companies where the stock is still going up and has been for 20 years. And plenty of employees just left their espps to build over 10 years. Probably made a lot of money. But pretty risky way to get there.

[Todd.T]

I have an ESPP. I withdraw because I need the money to bridge to a new personal investment or like recently, the interest rates went up and I was leveraged on an investment. A lot of people hold for the capital gains, but when the stock dives, they crap themselves. I wait it out and sell when the ACB is good. Select one to ten percent of your base salary and they match it with 50% more.

[itsleo]

You should clarify that though the gains are long term during a qualified distribution, the discount you received is ALWAYS taxed as normal income.

Also, its not just holding for a year.. its 1 year from purchase date AND 2 years from offering date in order to be a qualifying distro.

[nicholasshook]

The thing with ESPP is no one but the people in the finance have the knowledge to make that work. Plus if your a full time employee who has time to also manage their portfolio to that extent

[PPCCO.]

Rsu, Stock options, and I couldn’t decide on the stock purchase plan. I would definitely be over exposed, but let’s say it’s exposure to a company that rhymes with lesla.

[cybrainx]

If you have ESPP and RSU.. sell RSUs first before touching ESPP.

[lordfarquad]

what if your company is private and you have rsu and some iso’s

[Cflaquatics]

Doing now what Brian proposed, buying and holding for 2 years (my companies long term gain expiration) then selling and rolling in to Roth IRA

[jkstudent]

why sell? why not keep the shares forever, especially if its a growth stock like WMT?

[charliegervasi]

Wish my company did this, that would be incredible

[ddellwo]

I have always skipped the ESPP at my company just because I figured I had enough risk exposure in the company with my job alone. Usually this has worked fine for me, although this year hurt a little bit since the company stock has been on a rocket ship to the moon the past six 🚀

[nizerp]

Clarification, did you mean to suggest holding until the sale is a long-term capital gains (12 months) or until the sale is a qualified disposition (18 months)?

[FredDogification]

I used my ESPP to pay off my house. It was a great option. Was really disappointed when the eliminated the beginning or end or quarter option and reduced it to 10%. Saw 3-400% returns.

[ranamohsinali]

Is it good to have abbott espp i live in pakistan and work in abbott?

[timcornett]

Wouldn’t it be the best of both worlds if you participated in the EPP but sold off an equivalent amount of stock in the company that was over a year old? You then get the benefit of discounted stock and the tax benefit of long term holding.

[vinjmc]

The market is pretty much complicated rn. Investors, learn to diversify your portfolio. Most people pay more attention to the shiniest positions on the graph to the cost of proper diversification. Having monitored my portfolio performance still smashing from the last quarter, I have learned why experienced traders make enormous returns from the seemingly unknown markets. Get a help