My ESPP Dilemma
I've been working for the company for ~ 8 years and have participated in the employee stock purchase plan since day one. It's been a great deal, the ability to purchase company stock at a discount and the appreciation of the stock. I have not sold any stock in the company. Now it makes up approximately 40% of my total portfolio. I've been able to generate an annual return of ~ 34% by just holding onto the stock. I'm tempted just to lighten up to diversify a bit. It would probably go into an index fund or real estate (if there's a good deal). It's very tempting to just hang on, but we all know what happened to the Enron...
posted by Money Turtle @ 5:49 PM
3 comments
3 Comments:
Why not sell just your gain and leave your principle in the co. stock? That way you can lock in the profits and buy some more long term investments. I only recently started participating in ESPP (because I have always believed investing a chunk of your salary in co. stock when your financial security is already tied up to the job is not a good idea) and that's the approach I am taking. I don't plan to see frequently but once every year or two when I balance my portfolio. Just something to think about.
Thanks... I'm going to sell some this year and probably do next day sale on the remaining purchases.
ESPP are really nice, but I deffinitely agree with mmb and might even sell more than cost basis. Going into an etf makes sense
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