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I just got hired on at a large tech company. I have the option to set aside part of my pay for stock up to x amount, so say I put aside $1k a month, every 6 months I will get $6k in stock, priced at the lowest point in that 6 month period and discounted a further 15%. It goes directly into a trading account and I can cash it out that day. Is there any reason I shouldn't put aside a big chunk of my check to do this?
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>>1422499
Reasons you shouldn't do it:
1) you have debt you should pay down
2) you need to establish/contribute to an emergency fund
3) you are not confident in the company's stock price going forward, but if you're gonna sell as soon as you get it no big deal.
other than that sure go for it. unless there's some tax differences I'm not aware of, I'm assuming it'll be normal income taxed.
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I do it for my company's stock and my regret is not buying moar especially if it pays dividends like mine does. Only reason is I think that they tax it like crazy if you don't hold it for two years.
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>>1422499
You'll get taxed at capital gains tax-rate instead of regular income tax-rate.
>Protip: CGT is higher than income tax in all Western countries
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>>1422541
>As of 2016, the United States taxes short-term capital gains at the same rate as it taxes ordinary income
lol u fun-e.
plus even if you were right, by definition capital gains would only be applied to the profit not the money taken out of his paycheck to buy the stock.
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