Buying company stock

creepycoug said:

HuskyJW said:

The company I work for offers stock purchases at a 15% discount. Isn’t this a no-brainer to do? Say it stays the same....time to cash out don’t I get a 15% return?

I started a few paychecks back but still see I don’t have any holdings. Apparently they buy the shares like 4 times a year.

Yep. ESPPs are a good deal if you believe in the stock. If it's a dividend stock, you are locking in built-in yield at a price that is 15% discounted to market. Whatever the yield is at a given time, you paid less for it ... forever until you sell.

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

The company I work for offers stock purchases at a 15% discount. Isn’t this a no-brainer to do? Say it stays the same....time to cash out don’t I get a 15% return?

I started a few paychecks back but still see I don’t have any holdings. Apparently they buy the shares like 4 times a year.

Yep. ESPPs are a good deal if you believe in the stock. If it's a dividend stock, you are locking in built-in yield at a price that is 15% discounted to market. Whatever the yield is at a given time, you paid less for it ... forever until you sell.

It is

No brainer man. That's a pretty healthy discount, too, in my experience.

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

The company I work for offers stock purchases at a 15% discount. Isn’t this a no-brainer to do? Say it stays the same....time to cash out don’t I get a 15% return?

I started a few paychecks back but still see I don’t have any holdings. Apparently they buy the shares like 4 times a year.

Yep. ESPPs are a good deal if you believe in the stock. If it's a dividend stock, you are locking in built-in yield at a price that is 15% discounted to market. Whatever the yield is at a given time, you paid less for it ... forever until you sell.

It is

No brainer man. That's a pretty healthy discount, too, in my experience.

Right on. I really appreciate it

One of my mom’s died earlier this year so I am a trust fund guy now too.....and I get her pension. Kind of overwhelming so am gonna have a bunch of questions

Sorry to hear of that my man. Losing parents is a big deal. Hasn't happened to me yet ... my parents were young when they had me. But it's on the horizon for one of them.

One caveat here: we're not dispensing financial advice. It's just "what I would do" stuff. Also, an underlying assumption, at least for me, that is highly relevant is your belief in the company and hence the stock. As a yield it ought not to be terrible too volatile on price, at least on a relative basis. On the other hand, when the shit hits, they all get smacked, and when a yield stock cuts its dividend, they often get really smacked.

At the end of the day, it's equity. Read the 10-K and the liquidity section of MD&A carefully. That's where they should be telling you the relative security of the dividend.

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

creepycoug said:

HuskyJW said:

The company I work for offers stock purchases at a 15% discount. Isn’t this a no-brainer to do? Say it stays the same....time to cash out don’t I get a 15% return?

I started a few paychecks back but still see I don’t have any holdings. Apparently they buy the shares like 4 times a year.

Yep. ESPPs are a good deal if you believe in the stock. If it's a dividend stock, you are locking in built-in yield at a price that is 15% discounted to market. Whatever the yield is at a given time, you paid less for it ... forever until you sell.

It is

No brainer man. That's a pretty healthy discount, too, in my experience.

Right on. I really appreciate it

One of my mom’s died earlier this year so I am a trust fund guy now too.....and I get her pension. Kind of overwhelming so am gonna have a bunch of questions

Sorry to hear of that my man. Losing parents is a big deal. Hasn't happened to me yet ... my parents were young when they had me. But it's on the horizon for one of them.

One caveat here: we're not dispensing financial advice. It's just "what I would do" stuff. Also, an underlying assumption, at least for me, that is highly relevant is your belief in the company and hence the stock. As a yield it ought not to be terrible too volatile on price, at least on a relative basis. On the other hand, when the shit hits, they all get smacked, and when a yield stock cuts its dividend, they often get really smacked.

At the end of the day, it's equity. Read the 10-K and the liquidity section of MD&A carefully. That's where they should be telling you the relative security of the dividend.

Totally get it. I just know next to zero on this stuff...so at least wanted a bit of insight into original question. Really appreciate it


Now onto RMD’s and Inherited IRA’s.....

You need a good tax accountant. If the corpus of the trust is north of $5 million or so (that's a rule of thumb, not science, threshold), then think about ponying up for a good tax or T&E lawyer.

@PurpleThrobber you agree with that?