ESSP When Company Outlook Isnt The Best

Curious to hear from you savages who have watched Margin Call and Wolf of Wall Street one too many times.


A big benefit of working for a publicly traded company is utilizing the Employee Stock Purchase Program, where the discount on buying shares for the company you work for can be from 5-15%.


Given tech has been hit hard and companies outlook have changed, has that caused anyone to change their contributions to ESSP. Allowing yourself to be able to build up a bigger safety net, if the layoffs continue


It is also pretty volatile to have so much in one companies stock rather than using that money to invest in $SPY.



๐Ÿ’ธ Investing
9
braintank
Politicker
8
Enterprise Account Executive
ESPP is one of the best deals in tech. It's the only time you get guaranteed returns.

What I did when I worked at a public company was max out ESPP. Then the moment it was granted sell for automatic 20% gains.

Then take those profits and invest in SPY, VTI, etc.
saaskicker
Celebrated Contributor
3
Enterprise AE
yes, this is the way. take the X% discount, sell immediately. do what you want with the added bonus.
Kosta_Konfucius
Politicker
1
Sales Rep
Very true, I have ran into issues with vesting where they had you hold the stock for a quarter before selling. Trying to figure it out with the new role
braintank
Politicker
2
Enterprise Account Executive
If you have to hold for a quarter, i'd reconsider participating. But if you can sell day 1 it's a no-brainer.
antiASKHOLE
Tycoon
1
Bravado's Resident AssHole
I have never heard of this. But I have also never worked for a company that has stock options either.
Maximas
Tycoon
1
Senior Sales Executive
I believe it's reputable for that too..20% gains that's a great win.Do wish to have that option where I'm at!
GDO
Politicker
1
BDM
this is the way. and if you trust the future keep a small portion in the comapny
Pachacuti
Politicker
6
They call me Daddy, Sales Daddy
Does your companyโ€™s ESSP allow you to sell the stock the day after you buy it?
And is your companyโ€™s stock pretty stable?
If yes to both - max out what you can buy
CuriousFox
WR Officer
3
๐ŸฆŠ
Ooh GREAT questions ๐Ÿค”
jefe
Arsonist
2
๐Ÿ
I have a relative that did this, stable, non-tech company years ago. Made a killing a retired at 45
Kosta_Konfucius
Politicker
1
Sales Rep
Getting it confirmed, but pervious place made you hold for a quarter.

For the sake of the argument letโ€™s say it vests after 3 months
braintank
Politicker
1
Enterprise Account Executive
I've never seen one with a lock-in before. That's crummy
waterjugsales
Opinionated
1
Account Executive @ Funemployed
Mine had a hold period too
Kosta_Konfucius
Politicker
0
Sales Rep
Yeah when you have to hold, it can easily go down 5% over the next quarter which makes it a tough call
Coffeesforclosers
Notable Contributor
1
Director Sales and Market Development
I need to diversify outside of my current company. My shit is so down i gotta get it back up then spread the love. I would keep buying while its low if you believe it will come back
Kosta_Konfucius
Politicker
1
Sales Rep
Itโ€™s awesome to have a nice discount but it can cause you to have all of your eggs in one basket if not monitored
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
When times are "bad" for tech, they're GREAT for ESPP. I bought shares at my previous company all the way through. The ones purchased in 2008 increased in value 1562.96 % by 2022.
Kosta_Konfucius
Politicker
0
Sales Rep
Yes very true, however for arguments sake. If I dedicate 5% of my income to my company's stock with 5% discount might not be as good as investing 5% of my income in SPY or QQQ without a discount.
So I am trying to find a balance of utilzing the discount, but still be have a long investment strategy for retirement. Since if the money gets to my direct deposit, then I am more likely to spend more
Sunbunny31
Politicker
1
Sr Sales Executive ๐Ÿฐ
Gotcha, but I have done a mix. ESPP plus 401(k), as I donโ€™t have the time or energy to hands-on manage investing.
nomdeguerre
Executive
1
Account executive
No such benefit for me
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