The Pros and Cons of Having an ESPP Account

What differentiates a qualified ESPP account from an unqualified one

Find out the pros and cons of having an ESPP account here. Then let us help you start your financial independence journey by eliminating credit card debt with this free 7-Step Credit Card Debt Slasher.

How to become eligible for an ESPP account with your company

Are you looking for creative hacks to increase your net worth? Then an ESPP or employee stock purchase plan may be your secret ingredient. ESPP accounts allow participating employees to purchase company stock at a discounted rate. And 49% of companies in the S&P 500 and 38.5% of companies in the Russell 3000 offer this benefit. So, is an ESPP right for you?

On this episode of Queer Money®, we explain the eligibility requirements for an ESPP account and discuss the limits on how much you can contribute to a qualified account versus an unqualified one. We walk you through the important dates and tax rules associated with ESPPs and describe how companies benefit from offering employee stock purchase plans.

Listen in to understand the risks associated with investing through an ESPP and learn how to leverage an employee stock purchase plan to automate a new strategy for building wealth!

Listen to get insight on having an ESPP account

Topics covered on having an ESPP account

How ESPPs allow employees to purchase company stock at a discounted rate
What differentiates a qualified ESPP account from an unqualified one
How to become eligible for an ESPP account with your company
The limits on how much you can contribute to a qualified ESPP account
Important dates associated with an ESPP [e.g., offering period, grant date, and purchase date(s)]
The tax rules associated with a qualified ESPP account
How a company benefits from offering its employees ESPPs
How ESPPs serve as a convenient wealth-building tool for employees
How to avoid getting into a concentrated position with your ESPP account
The risks associated with investing through an ESPP account
Why you can’t easily access the money in an ESPP account for an emergency

Resources on having an ESPP account

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We’re David and John Auten-Schneider, the Debt Free Guys (www.debtfreeguys.com), and the Queer Money® podcast hosts. We help queer people (and allies) live fabulously, not fabulously broke, by helping them 1) pay off credit card debt, 2) become part- or full-time entrepreneurs and 3) save and invest for retirement.