My employer is a Fortune 50 offering a 10% discount on stock via an employee stock purchase program. I had maxed this out a few years ago and accumulated quite a few shares that have since increased in value. I paused using this program after the price increased a lot and my timing was certainly positive. With the current market turmoil and uncertainty the price has dropped and I think it might continue to do so for a while.
One of the gotchas with this program is that you contribute via deductions from your paycheck and, at the end of a quarter, the stock is bought at market price -10%. Obviously this is good if the market price at that time happens to be a dip, but it could be a peak. Also, the stock goes into a taxable trading account and you are responsible for taxes on the discount. There are no restrictions from me selling as soon as the shares settle for a 10% gain minus short term capital gain taxes.
I'm confident in my company's ability to perform over the long term and I don't plan on selling any shares for quite some time. So, I'm ok with weathering any short term price decreases.
I'd like to get opinions from this sub about how much, if at all, members take advantage of their stock purchase programs. I'm currently contributing quite a bit to my 401k and taking advantage of the generous employer match. If I were to start using the ESPP again, I'd continue my contribution to the 401k too.