Re: Employee Stock Purchase Plan?

In article 
<c3357f3c-5a18-4bb8-8f4d-9e9312d7b611@[EMAIL PROTECTED]
>,
 Bill Woessner <woessner@[EMAIL PROTECTED]
> wrote:

> Hi all.  I'm seeking advice on whether or not to participate in my new
> employer's stock purchase plan.  I haven't started the job yet so I
> don't have all of the details.  But the benefits crib sheet they gave
> me spelled it out like this: You can contribute up to 10% of your
> salary toward the plan and you purchase the stock at a 15% discount.
> It does not mention how long you are required to hold the stock.
> 
> On the surface, this seems like a simple way to get a 1.5% (= 10% *
> 15%)  bonus.  Of course, that assumes the stock stays level.
> Normally, I'm adverse to holding that much stock of a single company.
> So I'd want to sell it ASAP.  But there is the incentive to hold on to
> it for a year to get long-term capital gains treatment.
> 
> So basically, I'd just like to hear what other people have to say
> about such programs.  If you have personal experience, so much the
> better!
>
I guess that depends on the [strength of the] company and how good your 
crystal ball is.

It worked for me when I took part in such a plan from 1962-1966 (then 
the company discontinued the plan).  I received stock at a 15% discount 
and have never sold it and have reinvested all dividends, the stock and 
it's derivatives are worth over $250,000 today.  I just wish the company 
had continued the plan longer.

YMMV.

-- 
-Ernie-

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