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Trading Window is Open and I’m Making Some Changes

This article was written by in Investing. 4 comments.


On Monday, the trading window opens for employees at my company who are normally restricted from trading company stock. Here are the actions for which I’ve submitted my clearance forms and I’d like to do right away.

* Sell one third of my company stock holdings in my 401(k) and reallocate that amount in a money market fund (5.05%, tax deferred) also within my 401(k).
* Increase my 401(k) deferral rate from 16% to 25%.
* Reallocate my future 401(k) contributions to a less expensive mix of funds.
* Sell the company stock purchased through our ESPP for the first quarter of the year. I’ll have to pay short term gains tax on this.

My company’s stock price passed a certain milestone recently, and now that the trading window is open, I wonder if other employees have the same idea as me. I’ll be interested to see how much the stock drops over the next week or so.

Published or updated May 5, 2007. 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.

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About the author

Luke Landes, also known as Flexo, is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow Luke Landes on Twitter. View all articles by .

{ 2 comments… read them below or add one }

avatar Zachary

Why the money market fund, out of curiosity?

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avatar Luke Landes ♦127,386 (Platinum)

The overall stock market is at record highs right now — and my company stock has increased 200% in the past few years — so I want to back away a little bit until things return to average.

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