Recently, I’ve written about my company’s new stock purchase plan. My employer is giving all employees a chance to purchase up to 10% of their salary in company stock at a 15% discount of the lower of the beginning or end of each quarter. Yesterday, I made my election official. I will be contributing the maximum.
This is going to cause a shortfall in my cash flow. It will be significant since I my income is already being distributed to my 401(k), Roth IRA, savings, and necessary expenses. I believe the best way to handle this is to use savings to supplement my income which will be “missed,” and replace that savings at the end of each quarter (or during the open trading windows) when I sell the company stock.
Published or updated November 14, 2006. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.