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Originally Posted by Big G
jIM_Ohio,
I guess I am confused, should I be putting more into my retirement or does everything look to be on track? The one thing I could easily do is next quarter drop the employee stock plan and move that 3% over to retirement bringing that total up to 8% invested.
Should I be in an stock plan at this point? I know I am making money with it, when purchasing the stock I get it at a big discount so when I sell it the profit should be that much higher. The stock is TYL ...
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You'll know in about 4-8 years if you are "on track"... you hadn't hit the "checkpoints", which means you still need to contribute.
Company stock purchased at a discount... has pros and cons.
What I saw was your company is worth ~$500M. I think it's stock would be volatile (unless company would grow to $2 B-$ 5B territory.
I started at a small company 10 years ago... worth $450 M, we got bought out 4 years after I started. There are pros and cons of holding company stock.
My advice would be:
short term, 8% to 401k, no company stock. This lasts until you hit a 10% milestone.
mid term reduce 401k to 7% and use 1% for stock purchase. Watch purchasing any mutual fund which invests in your company's stock.
long term- as investment picture clears up (in 8% or 9% return range and on cruise control), I would look at a larger position in taxable stock accounts.
Then we could start a tax discussion and not a savings discussion.
