investment advice

[vital]

I'm currently maxing out my 401k and I would like to invest a little more each pay period to either towards retirement or the company's Employee Stock Purchase Plan. If my company is offering 15% discount on the ESPP, should I invest in the ESPP or an IRA?

 

[theGlove]

why not both? it's not like you can't have one or the other.... is it?

you really can't get any better than nearly 15% return guaranteed

 

[AtlantaBob]

Almost always IRA. Roth IRA allows your investments to grow without taxes--including any taxes you may incur from capital gains or dividends--and you don't have to pay taxes on that money when you pull it out either. Sure, the discount on the ESSP is nice, but depending on how long it takes to vest (I'm assuming you can't turn around and sell it immediately), you may end up with too many of your assets in one place, which could be really bad if the stock price goes south. That, and you don't get the tax advantages of the IRA. My $.02.

 

[vital]

Originally posted by: theGlove
why not both? it's not like you can't have one or the other.... is it?

you really can't get any better than nearly 15% return guaranteed

With my bills, investing in both is not likely an option at this time.

 

[theGlove]

in ESPP, you can do same day sell transaction as soon as the essp period ends (ie, every 6 months)

 

[iversonyin]

Which company you work for? and how did they perform over the last couple years? If you can get it at 15%, thats excellent...but I would sell immediately and take that 15% and throw it into something else. Having 1 stock is not good. And there's no guarantee the stock stay at the same level.