Author Topic: Unit Purchase Plan or Low-Cost Index Fund  (Read 1145 times)


  • 5 O'Clock Shadow
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Unit Purchase Plan or Low-Cost Index Fund
« on: March 09, 2017, 08:22:12 AM »
My employer allows a 10% discount on company stock purchased through after-tax pay roll deductions (up to 15% of your paycheck). They purchase this stock quarterly and deposit it into an account (Fidelity) at no cost to me. The only cost incurred is when you sell the stock which is $0.04 per share. In addition, each share gets a dividend of $1.64 which is distributed quarterly, and can be reinvested. This dividend has increased for 20 straight quarters. My company is very large L.P. in the midstream energy sector.

Would I be better off putting 15% of my paycheck towards this or to instead invest in a low-cost index fund?


  • Pencil Stache
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Re: Unit Purchase Plan or Low-Cost Index Fund
« Reply #1 on: March 09, 2017, 09:40:01 PM »
If the required minimum hokding period is reasonably short and it would only form a small portion of your overall investments I say go for it.

An easy 10% gain is nothing to sneeze at.