I think I have a decent idea of what makes the most sense but just want some third party confirmation or maybe some counter points. Here's my situation:
I'm starting with a new employer this month (publicly traded). They DO NOT offer a 401k match. However, they do offer an ESPP with a max allowable contribution of 15% of gross pay. Shares are purchased at a 15% discount of the lower of the share price at the beginning of the purchase period or at the end (6 month purchase period). There is a 2-year lookback for price.
Let's assume that I could only afford to defer 15% of my gross pay. I'm thinking it makes sense to max the ESPP, cash in on the at least 15% gain on that deferral (which would beat the vast majority of other investments, especially over a 6-month period), and immediately sell enough shares to max out my and my wife's Roth. I will either keep the excess or sell and diversify in a tax bearing account. I'm also receiving some RSU's so I may keep some of the shares bought through the ESPP but I will definitely sell off the majority of them to mitigate risk.
Can someone sanity check my plan?
Submitted July 02, 2021 at 07:44AM by Raininggainz https://ift.tt/2TtwfgP
