How does Microsoft ESPP’s plan works?
I understand that you can invest up to 15% of your paycheck. When do you vest the stocks, and what is the discount offered on Microsoft stocks? What im mostly interested in learning is how that impact your monthly cashflow. We have a pretty tight monthly cashflow after our expenses and maxing out our 401k and HSA.
10% discount Have to wait a quarter, sell immediately if your cash flow is limited
Is it a rolling quarter (90 days after the paycheck deduction), or do you get all your stocks once a quarter?
Also, if you set it up to sell immediately, are you guaranteed to get a 10% gain? If not guaranteed, what does the average gain looks like in your experience?
Their stock is down so we are holding. 15% max. We already had accounts with Fidelity and a new one was created to receive ESPP stock.
Don’t you vest at 90% of the market value? If you were to sell immediately at vest time, wouldn’t you get a guarantee return? Where is the gamble?
I have tight monthly cash flow after that as well. Because of that I only do 3%. I’ll do more later in life