Saving and investing in your company’s Employee Stock Purchase Plan (ESPP) is on our list of permanent recommendations. An ESPP allows you to buy your employer’s stock at a discount of up to 15% or more of its current market value. You can then sell your ESPP shares when you receive them to capture the built-in investment gain.
401(k) Plan Basics—Part II: Contributions, Investment Options, and Recommendations
Last week we took a look at tax advantages and rules to remember for 401(k) plans. This week we will discuss the nuts and bolts of using a 401(k), including contributions, investment options, and beneficiaries.
401(k) Plan Basics—Part I: Tax Advantages and Rules to Remember
In many households, 401(k) plans are the primary vehicle for tax-deferred saving and investing. In the competitive job market of Silicon Valley, employers find it essential to offer a 401(k) plan to attract top talent, and most companies offer this benefit to their employees. Here is a quick review of this plan’s features and benefits.