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Started By
Message
ESPP
Posted on 2/19/15 at 2:26 pm
Posted on 2/19/15 at 2:26 pm
At the company a friend works for you can use the employee stock purchase plan to buy discounted stock (10% off the end of quarter price) he asked me why that isn't just a 10% raise? He has to hold the stock for 6 months but if you could afford to reduce your income for 6 months couldn't you just sell the newly 6 month old stock and get basically a 10% raise minus capital gains tax? UNM is the ticker.
2
Posted on 2/19/15 at 2:28 pm to bobaftt1212
Absolutely
There are usually limits on how much you can purchase though
Some places will give you a discount on the lowest price of the quarter or period (not just at the end)
So you could be making 30% or more the second you buy it, but you'd likely just have to wait to sell it for whatever the time limit is.
There are usually limits on how much you can purchase though
Some places will give you a discount on the lowest price of the quarter or period (not just at the end)
So you could be making 30% or more the second you buy it, but you'd likely just have to wait to sell it for whatever the time limit is.
Posted on 2/19/15 at 4:01 pm to bobaftt1212
1) You have to hold the stock a year to get favorable cap gains rate. Under a year, it's taxed at ordinary income.
2) It's still stock... so it may increase or decrease in value.
As long as the stock doesn't go down 15 percent, you are fine.
2) It's still stock... so it may increase or decrease in value.
As long as the stock doesn't go down 15 percent, you are fine.
Posted on 2/19/15 at 7:18 pm to LSUFanHouston
He could find a 12 month 0 apr credit card and shift his spending to that, max out his espp, and hold the stock for a year. As long as it the stock doesn't drop more than 10% from the purchasing price, they would profit. After that first year the sell of stock would replace the missed income. Or stocks could sink, your friend could lose their money, and have a large credit card bill with a shitty apr.
Posted on 2/19/15 at 8:38 pm to blackoutdore
That is probably the worst advice that I've ever read here 
no seriously
no seriously 
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