Should you max out espp

In this article, we will outline how the Employee Stock Purchase Plan (ESPP) works, where you have an advantage (and where you don’t), so you can tip the odds in your favor.

We’ll cover the five things you must know to maximize the benefit you get from your Employee Stock Purchase Plan:

1. What is an ESPP
2. How an ESPP works
3. When should you participate in your ESPP
4. How ESPP shares get taxed
5. And how to use ESPP shares to accelerate your financial goals

But first, a question for you:

If I offered to sell you a nice, crisp $100 bill for $85, would you buy it?

A no-brainer, right?

The popular employee compensation program, known as an Employee Stock Purchase Plan (ESPP) allows you to do just this—to buy your company stock at a discount.

Let’s get started to learn how you can take advantage.

#1 – What is an ESPP?

Offered by most publicly traded companies, an ESPP is an employee benefit that allows you to purchase shares of your company stock at a discount.

It’s this discount that’s the most significant advantage of Employee Stock Purchase Plans.

For most employ

what percentage should i contribute to my espp

how much to contribute to espp