What Is Financial Independence?
What is financial independence?
That’s the beauty of it. Everyone’s definition is different.
At its core, it's the ability to do what you like, when you like, and with whom you like.
Where We Focus vs. What Sinks Us
We tend to focus on what we know.
It’s specialization at its finest!
Unfortunately, this laser focus can create painful blind spots.
Own Stock or Contribute to ESPP?
Is it better to own stock or contribute to an Employee Stock Purchase Plan better?
Contributing to an Employee Stock Purchase Plan may be preferable.
Let’s compare a couple scenarios either:
owning $10,000 of stock or
contributing $10,000 to an Employee Stock Purchase Plan with a 15% discount and six month lookback
Scenario 1: a price increase of 10% could result in:
Ending value of $12,941 with the ESPP versus $11,000 if holding stock
Gain of $2,941 with the ESPP versus $1,000 if holding the stock
Return of +29% with the ESPP versus +10% if holding stock
Scenario 2: a price decrease of 10% could result in:
Ending value of $11,765 with the ESPP versus $9,000 if holding the stock
Gain of $1.765 with the ESPP versus loss of $1,000 if holding stock
Return of +18% with the ESPP versus -10% if holding stock
