025 - How Can I Best Use My Employee Stock Purchase Plan (ESPP)?
An episode of the Real Personal Finance podcast, hosted by Scott Frank and James Conole, titled "025 - How Can I Best Use My Employee Stock Purchase Plan (ESPP)?" was published on December 11, 2019 and runs 21 minutes.
December 11, 2019 ·21m · Real Personal Finance
Summary
What is ESPP? The price discount is generally 15%. Enrollment period - decide how much of your paycheck you will contribute. Can’t contribute more than $25k/year, although companies can limit the amount to a % of salary. Purchase period - usually 6 months. The period during which Look back provision - not required for all ESPPs, but allows the discount on the lower of the stock price on the first or last day of the purcase period. Is it smart to tie up with a single employer? If you sell yo...
Episode Description
- What is ESPP?
- The price discount is generally 15%.
- Enrollment period - decide how much of your paycheck you will contribute. Can’t contribute more than $25k/year, although companies can limit the amount to a % of salary.
- Purchase period - usually 6 months. The period during which
- Look back provision - not required for all ESPPs, but allows the discount on the lower of the stock price on the first or last day of the purcase period.
- Is it smart to tie up with a single employer?
If you sell your shares immediately, then there’s no risk of doing this. - If you hold the shares, then you could lower taxes and have greater growth potential, but there’s the risk of being too concentrated in one company
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