I never participated in the ESPP in my first few years here, but eventually started contributing 3% of my paycheck to it after everyone including my boss told me I’m an id--t for not doing so and that I’m passing up free money.
With the recent stock price dip, I’m now thousands of dollars in the red. I would’ve been better off not participating like I originally didn’t do.
But not that the stock price is so low, would you say it’s worth increasing the % that I contribute for this?
0! UHG decides when the stock gets purchased at a discount…so chances are, the discount is more likely to be zero. If you want to buy (I wouldn’t) - decide for yourself at what price and time.
Zero
The company is chest deep in scandal
Enron taught me never to invest more than 1 or 2 percent. For me it’s access to quick cash if I want to put a down payment on a car or some other large expense around the house. But beyond that I would never consider it a retirement vehicle.
Ever heard of insider trading?
Oh ge-z uhg does not require hold for 2 years go read the irs regs for short vs long term captial gains tax. If you held it for less than a year, your gain may be taxed upwards of 37%. If you held it for over a year, your rate may be less than 15% (and even 0% in some cases).
Think about it this way - you are already investing in UHG by virtue of your work and paycheck. Take the 3 percent that you would otherwise invest internally and invest it in the stock market, tbills, what you deem most compatible with your risk appetite . Diversification works to protect your portfolio. Good luck!
Wait, we have to wait 2 years to sell? I didn’t see that listed anywhere
ESPP used to be a good deal 15% discount and lookback feature where they took the lowest price during that period and that was the buy price. But of course some MBA had a query run and sc--wed us all so there is no upside anymore for taking a 2 years risk to get long term capital gains and only a 10 % discount. And the buy price is the end date of the buy period good or bad. Look elsewhere to invest. The stuff you are underwater with just hold it will pop back at some point. No need to be anxious and lock in your losses unless you need to offset some other gains in taxable accounts with the loss. I diverted my former ESPP contributions to in the future buy as much as I can in a roth 401k and divert to an index fund and not build a tax timebomb in the future The two passive index funds at Fidelity have performed well for me. You can also jailbreak the system by using brokerage link and invest in anything your heart desires. Good luck
I stopped doing ESPP. I bought on the dip last month at $250 and can sell whenever. Being stuck in ESPP buying on a specific day and having to hold 2 years all for a 10% discount isn't worth it. ESPP had better rules in the past getting a higher percentage discount plus comparing first and last date in the sale period and getting the lower stock price of the two.
The max, but you have to sell it as soon as you are able to lock in some profit (i.e. "free money") from the discount and minimize investment risk.
If you buy and hold (which it sounds like you have been doing) then you are taking on investment risk, albeit with a discounted average cost.
Good luck!