I fully regret investing any of my salary into the purchase plan...The leadership of this company has tanked the stock. Dump and run or ride this crash course out?
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I can’t wait until the stock goes above 70 again so I can sell this garbage.
Definitely not “free” money. There is such a thing called disqualified disposition, it’s on your W2, congratulations, you’ve won more taxes
@mbj+1qHxjBIa lets make this a sports analogy...team does well for a few years, then team stinks...who is the first to go...the coach and sometimes the GM...the coach is the leader of the team. Walt is the "leader" of this company. He has failed his team by making or approving poor decisions. The leader needs to go.
I max out my ESPP and immediately sell it when it lands in my account. 15% free money. Then invest that in index funds such as VTI.
I would do this at any employer. If you wouldn't buy the company stock as an outside investor, there's no reason to have concentration risk just because you work here.
I always sold my ESPP shares immediately at the time of acquisition. My thinking was it's better to lock in the 15% discount/return, especially given the market risk of Schwab stock in 2022-24 and maybe beyond. The annual rate of return on ESPP is far better than 15% since this rate of return is applied to all the money deposited during the offering period... from the first pay period through the last. It’s a “Time Value of Money” consideration. For example, you get the 15% return on money that was only held for a couple of weeks if it was deposited near the end of the offering period. You can't get that return anywhere else with very minimal risk. The only challenge is an immediate sale of ESPP generates a Disqualifying Disposition which Schwab reports as income on your paycheck/W-2 - so you need to be aware on taxes to not report the gain twice (already as income and Short-Term Gain/Loss on Schedule D). Disclaimer - My personal advice only and not anything to do with Schwab. Schwab inactivated my license a few days after my termination… one of the more efficient layoff processes.
"The stock crash had nothing to do with management"
Ok Walt!
The stock crash had nothing to do with management.
What are your thoughts on the ESPP stocks are will be awarded this year? Sell it the next day or hold on to it ?! Last year I sold pretty much everything the year before I am still holding because I didn't sell it quickly I will be at loss if I sell it now. I have set limit orders but the stock keeps going down. I do need the $$ to payoff some debt. If I sell everything this year It will pay off all the debt @5.5% interest rate.
I don’t regret participating, it may be lower now than what you’ve paid so I would just ride it out if you don’t need the $$ in the near future. I still have a decent chunk of stock but all the shares I have sold over the years have been at least 50% gain from what I paid. My advice, hang onto it a little while, why sell at a loss if you don’t need the $$.
To clarify, I’m just referring to the ESPP, I never and would never invest in the stock in my 401k but that’s just me.