I immediately sell ESPP stock and buy VTI in the taxable account. ESPP is just a way for me to get a slight boost on taxable contributions. I'm adding $140k to my portfolio per year. This is actually the first year that I will do ESPP, as I finally convinced myself that it's worthwhile given my strategy is to not hold employer stock. I also try to take on no more than one new tax pain in the ass per year, so this year ESPP and maybe next year VXUS in my taxable account.Are your annual retirement contributions $84k, $140k or something in between? Is the portion of the $56k attributable to ESPP true incremental savings?
For example (assuming $50k is ESPP), are you contributing to the ESPP and:
(1) purchasing $50k of employer stock to add to your portfolio each year, or
(2) selling the ESPP stock for a net profit of $50k each year and adding that $50k to Taxable, or
(3) are you contributing $50k to the ESPP each year, selling the stock for $55k, contributing $5k profit to Taxable and using $50k to recontribute the next year?
Statistics: Posted by PineNeedles — Tue Feb 20, 2024 4:53 am — Replies 11 — Views 1195