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If it is 10%, essentially you'll buy 25K worth of stock at

Posted on: August 21, 2020 at 14:53:55 CT
TigerJackSwartz MU
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10% discount. So if the stock is $100 per share, you'll get to buy 278 shares, which would have a value of $27,800. That's greatly simplified.

The ESPP plan I'm in now, you can divert 15% of your salary, up to $25K, the discount is 15%, there are two six month periods, and there is a lookback where the 15% is applied at the lowest stock price at either the start of the 6 month period or the end of the 6 month period.

So if my salary is $150K, I can put in $11,250 per 6 month period. If the stock is at $100 at the start of te period, and goes up 10% by the end of the period, I would get to buy $11,250 of stock at $85, and immediately sell it at $110. So $3300 of free income with virtually no risk, with investment of my money varying from 6 months to two weeks.

It is a good deal. It is a great deal if the stock has a large jump in the 6 month period, with the look back.
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MESSAGE THREAD

Are 401k's becoming a thing of the past? - playhard NWMSU - 8/21 14:14:31
     Our company stopped matching in February - Tptiger MU - 8/21 17:50:42
     We provide 3% no matter what you do... - DevilsAdvocate KC - 8/21 15:05:38
          similar 3% given retirement 3% match plus profit sharing - TigerFan92 STL - 8/24 12:53:32
          We're 100% of first 3%, and 50% of the next 2% (nm) - TigerJackSwartz MU - 8/21 15:08:39
               Not bad...(nm) - DevilsAdvocate KC - 8/21 20:21:22
     Uncle had a 409 in a 1964 Impala.... - Fred G. Sanford MSU - 8/21 15:03:23
          Giddy Up,Giddy Up 409. nm - Sarazen KC - 8/21 15:50:50
          And today there are 2L 4 cyclinders that would destroy it (nm) - TheWildcat MU - 8/21 15:17:05
               Gee that’s really cute to hear(nm) - Fred G. Sanford MSU - 8/21 17:17:42
     It still has great tax advantages - meatiger MU - 8/21 14:35:03
          I think i'll go another route and opt out of doing their - playhard NWMSU - 8/21 14:45:34
               it is still a free 2.5% - meatiger MU - 8/21 14:47:08
                    Or it could be as low as 0.5% matching(nm) - playhard NWMSU - 8/21 14:56:28
                         You get the deferral, and up to 2.5%. - tigerdb MU - 8/21 15:12:44
                         either way, free money. Don't leave free money on - TigerJackSwartz MU - 8/21 15:00:31
               you're leaving free money on the table. don't do that - TigerJackSwartz MU - 8/21 14:46:54
          curious about recommendation to fund an IRA first - I guess - TigerJackSwartz MU - 8/21 14:43:01
               investment choices - meatiger MU - 8/21 14:44:52
     Yes - it’s now a 401 Donruss. - Gyro(nm) - Carlos Rossi KC - 8/21 14:29:57
          RE: Yes - it’s now 401 Donruss. - Gyro(nm) - dangertim MU - 8/21 14:34:03
          lol(nm) - hefeweizen MU - 8/21 14:30:51
     Sounds like it's alive in well from your post (nm) - Sal MU - 8/21 14:20:26
     that's a pretty ****ty plan - lqf2b8 MU - 8/21 14:20:16
     how does a miserly match program portend the end of the - dangertim MU - 8/21 14:19:25
          BOAISY (nm) - lqf2b8 MU - 8/21 14:23:18
     My old man gave me good advice. The very first thing - TigerJackSwartz MU - 8/21 14:18:56
          Never had a company with a stock purchase plan - meatiger MU - 8/21 14:33:47
               not talking sell and hold. Sell it the day you get it - TigerJackSwartz MU - 8/21 14:40:10
                    Is that counted as just ordinary income then?(nm) - meatiger MU - 8/21 14:41:45
                         short term capital gain, which is the same thing (nm) - TigerJackSwartz MU - 8/21 14:43:20
                              Is the 25 K limit - meatiger MU - 8/21 14:46:25
                                   If it is 10%, essentially you'll buy 25K worth of stock at - TigerJackSwartz MU - 8/21 14:53:55




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