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by irrational 3478 days ago
That's true, but I always sell my ESPP as soon as it is purchased. That is an immediate 15+% return. Our ESPP is 15% off of the lower of either the beginning or the ending of the offering. Of course the hope is that it will be the lower at the beginning of the offering so that the sell will be 15% + the amount the stock has risen since the beginning.
2 comments
chug 3478 days ago
The only company I've worked at with an ESPP required you to hold the stock for 1 year before selling--not in the sense of tax incentives unfortunately, but you literally cannot sell before 1 year. I didn't realize there were ESPPs where you sell immediately. In that case, woo free money!
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hobonumber1 3478 days ago
Well it is 15% but you are paying income tax on it because you aren't holding it for a year. So depending on your tax situation, it may be closer to 7-10%. Still good though.
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findjashua 3478 days ago
The income tax on the profits. If you sell the espp instantly, there isn't much profit, so I'm guessing there isn't much tax?
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irrational 3477 days ago
Well, according to this guy: https://thefinancebuff.com/employee-stock-purchase-plan-espp... it is closer to a 90% return. The example he gives is exactly how my company's ESPP works.
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