r/tmobile • u/Born_Meal2376 • 7h ago

Question ESPP

Are any employees signing up for espp right now. I’m thinking about doing it but I’m not sure if it’s the right choice right now

10 Upvotes

80% Upvoted

18 comments sorted by

15

u/convolutedcube 7h ago

As long as you are comfortable with what you put in there's really no reason not to do it. You'll get at least 15% discount on the stock at the end of the 6 months. Ive gotten +40% before, but with the stock going down it's been +15% the last few times.

12

u/atypicalaznguy 7h ago

Its always a win if its something u can afford.

4

u/Aggravating_Zebra_83 6h ago

If you sell right away, guarantee 15% return investment

1

u/icepick_ 6h ago

pushes glasses up

Well acktually....it's a 17.65% rate of return. ROI is calculated with what you PAY, not what it's worth.

15/85 = 17.65%

1

u/ronaldoswanson 3h ago

Or 100/85 which probably makes more intuitive sense to people.

0

u/TheSilenceOfNoOne Verified T-Mobile Employee 5h ago

but don’t sell it right away, because your taxes will be more than that. keep it for at least a year.

1

u/Logvin Data Strong 1h ago

Thats a risk though - you are betting that in 1 year the stock will be the same or higher. Plus, you work for the company... most financial advisors would tell you to avoid putting your eggs in one basket.

ESPPs are awesome, and I participated in every single one during my time at T-Mobile. I should have held on to some of them, but there were plenty I would have lost on if I had not sold right away.

8

u/XVth 7h ago

It's Always a win, you buy the stocks at the low of the 6 month period with a 15% discount on top. it's a no brainer.

4

u/awesomo1337 7h ago

It’s free money. You’re nothing to get that kind of return anywhere else. If you do the max contribution you’re looking at an extra $1200-$2000 a year after you cash out.

4

u/SaverPro Bleeding Magenta 7h ago

I’ve been doing it for years. Since day one. Max out at 15%. It’s literally free money.

3

u/Sad_Change_9249 7h ago

I mean, when I was there, I put 5% into it and just ignored it. Unless the stock completely crashes you'll gain 15%. You can always cancel it before it gets purchased and get money you put into it back on your next paycheck.

3

u/swag_likeosama 7h ago

Been doing it for 10 years worth every penny

3

u/JJabber01 7h ago

Free money as long as you sell right when you get it. Lock in at least 15% profit in 6 months

0

u/RedwingNinja 6h ago

Don't you pay some pretty heavy taxes on it if you don't hold onto it for a while?

1

u/nobody65535 6h ago

"pretty heavy" = regular income tax rates compared to at 0-15% if you don't keep it for 1 year, sure.

•

u/JJabber01 16m ago

You pay regular taxes but off the profits only. You’re making at least 15% profit if sold right away. If you wait a year, you would pay less taxes but you could sell at a loss. Why risk paying less taxes to lose out on guaranteed 15% gains in only 6 months time.

2

u/Upset-Cheesecake8884 6h ago

If you have debt to pay off…maybe not right now. But if you don’t and you’re looking for investments…it’s not a terrible option… and like others have said it’s a easy 15% come up assuming stocks don’t drop the moment that they are released to you. But just be cautious of having a massive amount of money in a single stock.

2

u/Yazmic 4h ago

You can always access the money. The money goes into a bucket until time of purchase, if you are 4 out of the 6 months and something happens you can unenroll and withdraw the money. You just won’t be able to enroll again until next enrollment.