Edited - Is ESPP at 5% discount worth it?
This is for Oracle. Some cons: - Once taxes are factored in, total return is ~3.5%, which is well within the weekly volatility range for the stock. - You will have to sell immediately to diversify anyway. Edit: which is better - after tax 401k or above ESPP? I realized I can chose either ESPP or 401k after tax, not both, due to cash flow issues. I would think after tax 401k is better because the money will start working as soon as it is deposited where as ESPP money with sit in a money market account at the brokerage until it is time to buy.
Do you get it in 3 months ? Still a great deal.
Any investment will pay tax.
If you find 3.5% of 10% of your salary on the ground, would you pick it up?
Always say yes to free money!
Nah. Usually they grant them after closure of earning call at closure price don’t they?. What if quarter sucks and stock falls 10% next day which is the earliest I can sell?Wouldn’t u lose money? I would still consider it but conditions kinda suck
Minimum is 3.5%, if stock appreciates, it would be higher. I would do it
ESPP takes 2 days to show up on your Fidelity, there's still a (small) chance that you might not make any money
As my previous job, I didn't think it was worth the effort at 5% discount especially factoring in the volatility and taxes.
If there is a lookback, that's where you make the real money. Discount is only one way you make money.
Unfortunately no look back. 🙁
Worst case is 3.5%. Still not bad
+1 additional guarantee money even small is still money