I am VERY green to this whole badassity of financial independence and early retirement. All these numbers and plans have only recently started sinking in to my deeper understanding. 401K, IRA, HSA all used to be abstract concepts that are now much more concrete and I really starting understand how I can most effectively utilize them as tools towards FIRE.
And then I get this email... Apparently my employer offers an Employee Stock Purchase Program (ESPP) and the next offering period is coming up. Of course I immediately jump on the MMM forums to try to find as much information as I can about ESPP. And truth be told, I haven't found much whether that's due to my trouble with the search feature of the forums or these programs just plainly not being that common.
What are the general feelings about ESPP's? Can you share with me some of your experiences with them, good or bad? How do I most effectively use this program? Or should I stay away from it entirely? Are there any other sources of information you can point me towards? Is there anything special I need to be aware of in the tax realm for these plans?
I want to take advantage of as many programs and benefits my employer offers as possible but I also don't want to rush into something I don't completely understand.
The Plan Details:
AFTER tax money is deducted from our paychecks at whatever dollar amount we set (min $20, max $810) for six months. At the END of the six months, company stock is purchased at 85% of closing cost. We may not sell the stock for 3 months after closing date.