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Subject:  Another ESPP Question (long) Date:  6/26/2000  1:53 PM
Author:  memarcit Number:  22882 of 88775

Hi all:

I've worked for almost three years for a major business news publisher and just now am eligible for the ESPP. It's a typical plan, 15% deduction off fair market value. I can't afford lump sum payment now, I'd do payroll deduction.

I'm just wondering if I should do it - i'd just be able to afford about 36 shares or $50+/wk - for the following reasons:

1. Am contributing 5% of salary to 401K - more than enough to get total employer match, but obviously not maxing it out. I get 5% each week from employer.

2. Fully funding Roth IRA each year in hopes of using $10,000 to help purchase home in min. of 3 years.

3.Looking to save more $$ in relatively liquid instruments for emergency savings. Looking to save more in taxable (equity, i guess) investments for home downpayment.

4. No high-interest debts, car payments, etc. Just $3,000+ low-interest student loan left to finish up.

Employer is solid, has been around for 100+ years.

Any thoughts? Should I forgo ESPP and increase 401K witholding? Increase emergency savings? If I did the ESPP I'd hold the stock for at least the two-years necessary to avoid the tax hit and then probably sell to raise cash for home purchase.

Any thoughts?

Thanks in advance,

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