http://www.mapgirl.net/mfc/2009/05/01/april-2009-net-worth-update/ Just tidbits about money and finance. Fri, 30 Jul 2010 19:53:06 -0500 http://wordpress.org/?v=2.9.1 hourly 1 http://www.mapgirl.net/mfc/2009/05/01/april-2009-net-worth-update/comment-page-1/#comment-217996 Dave Sat, 02 May 2009 19:50:13 +0000 http://www.mapgirl.net/mfc/?p=1419#comment-217996 Why would you stop contributing to ESPP and not sell shares and lock in gains? I'm not sure how your plan works, but if it has a look back clause in it, you could lose out on a bunch of potential short term gains with very little risk. In my experience, most plans give a 10-15% discount as well, so assuming you sell right as soon as you receive shares, it seems difficult to lose money. I do agree that you shouldn't hold a significant amount of ESPP shares, since you say you already have sufficient exposure to company stock, and of course you've got exposure to them since they're your current employer. The only reasons I see to stop contributing to an ESPP plan is if you know you're going to be leaving your job before the end of the period, you need extra cash flow, or you have debts with extremely high interest rates. This assumes the plan is worthwhile, some of them have lock out periods and won't allow limit sell orders etc, but I figure since you've got so much invested in it, it can't be that bad. Why would you stop contributing to ESPP and not sell shares and lock in gains? I’m not sure how your plan works, but if it has a look back clause in it, you could lose out on a bunch of potential short term gains with very little risk. In my experience, most plans give a 10-15% discount as well, so assuming you sell right as soon as you receive shares, it seems difficult to lose money. I do agree that you shouldn’t hold a significant amount of ESPP shares, since you say you already have sufficient exposure to company stock, and of course you’ve got exposure to them since they’re your current employer.
The only reasons I see to stop contributing to an ESPP plan is if you know you’re going to be leaving your job before the end of the period, you need extra cash flow, or you have debts with extremely high interest rates. This assumes the plan is worthwhile, some of them have lock out periods and won’t allow limit sell orders etc, but I figure since you’ve got so much invested in it, it can’t be that bad.

]]> http://www.mapgirl.net/mfc/2009/05/01/april-2009-net-worth-update/comment-page-1/#comment-217870 Sistah Ant Fri, 01 May 2009 15:46:30 +0000 http://www.mapgirl.net/mfc/?p=1419#comment-217870 Good for you! One of these days I'm going to understand your investment-speak without having to look stuff up... Good for you! One of these days I’m going to understand your investment-speak without having to look stuff up…

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