DangerMouse
Thinks s/he gets paid by the post
My husband started a new position recently and part of his package is some Restricted Stock Units (RSUs) - which vest over 4 years - and the ability to participate in the Employee Stock Purchase Plan (ESPP) - max. of 10% of salary bought with 15% discount.
So for people who have participated in such plans what was your strategy to make this work for you? Reason I ask is years ago I had a similar offer with an employer and it ended up costing us money because the old greed monster took over. We had well and truly drunk the cool-aid and were not able to be objective about what was happening.
The amounts involved are not likely to be life-changing unless the stock goes up ten-fold, however I think that is unlikely seeing it has done that over the last 5 years and it is probably fairly priced. However, it would be a nice bonus to take every year.
We don't own any stock in the company so we do not have all our eggs in one basket. So should we sell the shares purchased in the ESPP as soon as they hit our account every six months?
I would be interested in hearing different successful strategies that people have used to manage these holdings as we are the poster children for doing it wrong in the past.
So for people who have participated in such plans what was your strategy to make this work for you? Reason I ask is years ago I had a similar offer with an employer and it ended up costing us money because the old greed monster took over. We had well and truly drunk the cool-aid and were not able to be objective about what was happening.
The amounts involved are not likely to be life-changing unless the stock goes up ten-fold, however I think that is unlikely seeing it has done that over the last 5 years and it is probably fairly priced. However, it would be a nice bonus to take every year.
We don't own any stock in the company so we do not have all our eggs in one basket. So should we sell the shares purchased in the ESPP as soon as they hit our account every six months?
I would be interested in hearing different successful strategies that people have used to manage these holdings as we are the poster children for doing it wrong in the past.