Hi, MMMers! I had a quick question about a company stock purchase. I recently switched companies and they offer, twice a year, the ability to purchase company stock under the current scenario:
-You contribute bi-weekly an amount you decide for a 6 month period
-at the end of the 6 months, you buy the stock at a 15% discount from the lower of two prices: the last date of the 6th month period (Dec 31st, 2013) or the first date of the 6th month period (July 1, 2013)...so it's a 'lookback' option
-You can decide every 6 months whether you want to re-enroll or not
-You need to hold the stock for 18 months, or else the 15% discount would count as regular income...if you wait the 18 months, it's taxed at the capital gains rate
My plan is to hold no more than 1% of net worth in single stock, as we're passive index investors. However, is even playing around with 1% foolish...or is the 15% plus the lookback worth considering, in your opinion? I realize there's no crystal ball or "right" answer...just looking for a poll of what other Mustachians would do given this choice.