Many public tech companies offer an Employee Stock Purchase Plan (ESPP) as an employee benefit. ESPPs allow employees to purchase shares of company stock at a discount through payroll deductions. On the surface, the decision to participate in an ESPP is a no-brainer. After all, the discount is free money! Suppose you are juggling financial priorities or receiving other forms of equity compensation (like restricted stock units or stock options). In that case, the decision to participate in an ESPP is a bit more complicated. Before you enroll in your company’s plan, here are some things to consider.
When I purchased my first home, I thought I was prepared for homeownership. I did extensive research and prepared myself financially for the responsibility. I was an aggressive saver and my only debt was student loans (of less than $5,000). After buying my first home and owning it for nine years, I learned many invaluable lessons that showed me I wasn’t truly prepared for homeownership.
As a Black financial planner who works with people of color, my clients often face the dilemma of balancing their financial goals with the internal pressure of helping others. When you’re the first person in your family or social circle to reach a certain level of success, you may have family members or friends who come to you for financial support.
You just received a job offer from a tech company. In addition to your salary (and maybe a sign on bonus if you’re lucky) you receive Restricted Stock Units (RSUs). Maybe you’ve received RSUs annually as part of your bonus compensation. Meanwhile, you’re staring at this student loan debt that seems to never go away. Or you have other financial goals, such as buying your first home or taking a sabbatical. How can you use your RSUs to help you reach your financial goals?
I often hear the same questions about financial priorities: Should I pay off debt before I save, or is it possible to do both? How much should I invest in my company’s 401(k)? When does it make sense to contribute to a Roth IRA? Whether you’re just starting in your career or finally at the point where you have more coming in than going out, it’s helpful to know how to prioritize saving, investing, and paying off debt.
Many of us who have no point of reference for how to achieve financial success look to those who we believe are wealthy. If you’re an 80s baby like me, you probably remember the television show “Lifestyles of the Rich and Famous.” Maybe you’re a bit younger and you remember the show “MTV Cribs.”
In Part One of my series on Open Enrollment, I discussed the most confusing benefits: health insurance and the many accounts that can be used for medical expenses. This post covers life insurance, disability insurance, legal services, and other valuable benefits that can add up to thousands of dollars.
Open enrollment is the time period each year when you’re allowed select your company benefits. This is a great time to review your options and make sure you’re taking full advantage of what your company offers.
Equity compensation has become an increasingly common way to recruit and retain employees. While it was traditionally a way to award high-ranking executives, it has become common for tech employees at all levels.