How To Get The Most From Your Employee Stock Purchase Plan (ESPP)

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How To Get The Most From Your Employee Stock Purchase Plan (ESPP)

Рет қаралды 20,909

Күн бұрын

Often overlooked, an Employee Stock Purchase Plan can be a great way to increase your net worth. Here’s how to get the most from your ESPP.
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www.pranawealth.com/
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-- About Patrick King CFP® --
Patrick King is a fee-only financial advisor in Atlanta and the Founder of Prana Wealth. Over his career, Patrick has helped CEOs, all-star athletes, Grammy-winning artists, and many others build their wealth, retire sooner, and create a legacy. Patrick enjoys yoga, mountain biking, golf, travel photography, and Clemson football.
Let’s connect:
LinkedIn - PatrickBKing
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Twitter - @PranaWealth
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DISCLAIMER: This is a publication of Prana Wealth Management LLC. All opinions of the authors expressed herein are as of the date of publication and are subject to change. Any information presented herein is not an offer to buy or sell, nor a solicitation to buy or sell any securities or products mentioned. Any investment, tax, legal, or estate planning or information is to be considered general in nature and is not intended as personalized financial planning advice. Always consult a financial, legal, or tax professional regarding your specific situation. Different investments have varying degrees of risk and there is no assurance that they will be suitable for a particular person’s portfolio. Past performance is not indicative of future results. Prana Wealth Management LLC is a registered investment adviser in the state of Georgia and other states where it is excluded or exempted from registration requirements. Registration as an investment adviser does not constitute an endorsement from securities regulators. Prana Wealth Management LLC receives compensation from KZfaq for the presence of advertising before, after, and during this video content. Prana Wealth Management LLC does not control the content or presence of any advertisements. The presence of any advertisement does not constitute an endorsement of the ad, company, entity, or product by Prana Wealth Mangement LLC.
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Пікірлер: 28

@shyamt5525 Жыл бұрын

I found this video very useful. It has all the info I was looking for. A big thanks to Prana Wealth for making this video on KZfaq!

@calvinlivengood5717 Жыл бұрын

Very informative! Thank you

@BeedeeEx 3 жыл бұрын

Very clear and concise explanation of everything! Thanks!

@PranaWealth 3 жыл бұрын

Thanks for watching and thanks for the kind words!

@dishaghosh2274 3 жыл бұрын

Very Informative :) , Thank you.

@PranaWealth 3 жыл бұрын

I'm happy you enjoyed it, Disha! Thanks for the kind words!

@prettywildnights 2 жыл бұрын

Really helpful, thank you!

@PranaWealth 2 жыл бұрын

@DenimAndLeather -- I'm so happy you got something out of it! Thanks for the kind words and here's to maximizing that ESPP! 🙏

@creatinechris Жыл бұрын

4:29 - Disqualifying Dispositions are not completely subject to ordinary income tax rates. Ordinary Income will be the Purchase Price (aka price at end of offering period) MINUS what you paid for the stock (price at beginning of offering period MINUS discount). The rest is either long term or short term gain depending on how long you held the stock after purchase.

@DanielFarrell Жыл бұрын

Yeah the online calculators seem to show no difference in returns if you sell for the same price as the FMV at the buy moment. If there's a slight change up or down, the after-tax difference is very small (

@creatinechris Жыл бұрын

@@DanielFarrell Yeah generally that's what I advise my clients to do unless we've carved out a section of their portfolio that they are proactively choosing to devote to company stock. In that case the discount can be very helpful long term.

@jimdonahue5723 2 жыл бұрын

Are your payroll contributions/deductions to a qualified ESPP, that are held in escrow added to your income on your W2? Thank you.

@ThrillFishing Жыл бұрын

Just subscribed. Crazy how clear and concise all of the information was without even using any graphics or numbers. Really need clarification on what was taxed and how, this cleared at all up. Thank you!

@PranaWealth Жыл бұрын

Awesome! Thank you!!!

@MrPdiddy08 2 жыл бұрын

Great video…thank you

@PranaWealth 2 жыл бұрын

Glad you enjoyed it, @Proud Dad 2014 ! Thanks for watching and thanks for the comment! 🙏

@Ease_29 6 ай бұрын

@@PranaWealthhi ,is it known as sweat equity shares or not 🚫

@JordanGonzalezvlogs 2 жыл бұрын

This video is everything I can wanted to know thank you my guy🙏🏼 Liked & Subbed🥀🖤

@toranaga1969 Жыл бұрын

My company has recently offered an espp but already shares purchased through a brokerage account. Would this cause any sort of issue?

@amyx231 2 жыл бұрын

I have like 1/3 my entire net worth in my ESPP. I’d like to sell. But the oldest lots are red - wash sale rules give me a headache just thinking about the taxes. I wish I could sell maybe 1/5 of it and put it into an index fund or 5 though. But taxes and wash sale rules…. Im planning to do it in 2022. As soon as I hit green for the older lots.

@PranaWealth 2 жыл бұрын

Selling in chunks is a great idea, AmyX. As far as wash sale rules go, they only apply if you repurchase the same stock. If 1/3 of your net worth is in your employer stock, it may be a good idea to diversify. As far as taxes go, long-term capital gains is the best deal you're gonna get from Uncle Sam (unfortunately). Great job of saving and good luck!

@amyx231 2 жыл бұрын

@@PranaWealth ESPP buys every 6 months. And dividend reinvestment is every 3 months. So Id have to time it tightly to avoid wash sale rules. Yes, I’ve tried to turn off dividend reinvestment. Apparently it can’t be? Must be the plan rules.

@PranaWealth 2 жыл бұрын

Amy, you may want to check with your CPA on this. I think the wash sale rules apply for only 30 days. If you have a 3 month window, you should be able to make some sales. fairmark.com/investment-taxation/capital-gain/wash/ But please be sure to confirm with a CPA to be sure.

@amyx231 2 жыл бұрын

@@PranaWealth Right. But the entry point was high. I’d like to break even at least. Avoid wash sale rules and make some money too. But yeah, 30 days is the rule. So I’d have a couple weeks of safety twice a year (cause the twice a year buys). Still, will take planning.

@thenick95051 11 ай бұрын

How do you tax a discount?

@cybrainx72 Жыл бұрын

ERROR: Wrong info with respect Non qualifying disposition @4:26 , Non disqualifying disposition have two scenario a. one with long term capital gain and b. other without short term cap gain. (a) seems to have been swallowed.