Opinions Needed: Employee Share Buy In Plan. 15% discounted shares. How much should I invest?

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It’s free money the way I see it. I’m assuming you have to hold for a year so it kind of depends on the company you work for but if you can afford it I would go with the max


Can you sell these shares immediately? If so, max it out.


ESPP is generally free money. You can always dump the shares as soon as they vest..


Without knowing the quality of company / share price I don’t see how you can get good advice here. I will say whether it’s a 401k match or a discount share buy in, it’s pretty much free money so max it out if you can as long as you’re ok with the risk and don’t need the money anytime soon / next 10 years.


I think that you have to check a few things: 1) Once you have the stocks, do you have to wait to sell them? 2) How long does it take for them to purchase the stocks? For example in my ESPP plan they take 3 month salaries and puechase stocks with that, so it’s 4 times a year. Let’s suppose that they take your salary from jan, feb and march, then you will see the stocks on march 31th 3) If you are planning to sell immediately it’s usually a gain or 15% more or less (the stock value could change) and you’ll to have to pay taxes on the gain, so more or less I would say 10% gain to be sure 4) Maybe you think that the company is going to grow so you decide to hold the stocks, but this is a dangerous path. As having savings and your salary on the same company. Just my opinion: max it out, 10% on your case. In the company that I work for, I can purchase 15% of my monthly salary with a discount of 10% So I’m buying the max: 15%