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|Subject: Another ESPP Question (long)||Date: 6/26/2000 1:53 PM|
|Author: memarcit||Number: 22882 of 76621|
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.
Thanks in advance,
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