Cvs espp

[farmadiazepine]

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I am wondering.. for an employee who invests money in the CVS ESPP for the FIRST TIME regardless of how long you've worked with the company, HOW LONG do you have to keep the money in the stock before you sell it?

Is it you invest for the 6 months, and can sell right away? Or, do you have to hold the money in the stock for a minimum of 1 or 2 years and then you are allowed to sell it?

I can call HR and find out, but if anyone here knows I'd appreciate it

 

[phampau]

It was 2 years when I use to work there

 

[NJHatLFG]

It is two years from the start of the offering period in which you purchased the shares.

This is a great program to utilize as a CVSer; however, if not properly integrated into your portfolio it can be a ticking time bomb due to the lack of liquidity and the fact that it common stock prices can be volatile.

If anyone needs assistance in incorporating this properly feel free to let me know. Next enrollment is July 1st.

 

[farmadiazepine]

It is two years from the start of the offering period in which you purchased the shares.

This is a great program to utilize as a CVSer; however, if not properly integrated into your portfolio it can be a ticking time bomb due to the lack of liquidity and the fact that it common stock prices can be volatile.

If anyone needs assistance in incorporating this properly feel free to let me know. Next enrollment is July 1st.

Yes, any advice?

I did ESPP for the first time this past enrollment period (Jan 1 - June or July something). It takes a big chunk out of my paychecks and I don't know if I should do it again for next enrollment. I'm thinking about cancelling it, especially since we have to hold that money for 2 years.

So any advice?

 

[CUpharmD2013]

Yes, any advice?

I did ESPP for the first time this past enrollment period (Jan 1 - June or July something). It takes a big chunk out of my paychecks and I don't know if I should do it again for next enrollment. I'm thinking about cancelling it, especially since we have to hold that money for 2 years.

So any advice?

Am I understanding it wrong? Assuming the stock price remains the same, you get a 15% return on your investment, correct? Seems like a good deal to me....

 

[farmadiazepine]

Well to be technical, yes you get a 15% discount when buying the stock, but your actual return on investment is ~17.6% because you consider the numbers going forward.. For example, if the stock price is $40 and you get 15% discount, you buy it at $34. As long as the price is the same 2 years later, then you sell it at $40, but your return on investment is $40/$34 which is ~17.6%. Thats just how the math works. Its the same ****.

Anyways, any advice? My paychecks are ridiculously small since I put 15% into 401k and 15% into CVS ESPP. I still work like 60-70 hours a week and get a check thats ~$3000 a week.

Before ESPP, my checks were pretty baller, like $4500 a check, but this ESPP is killing me. Any advice on how to maximize its potential or am I doing that already?

 

[sosoo]

im also wondering if espp is worthwhile.
say i put in $15,000 for the entire year. divide by $34 that was discounted from $40. that equals 441 shares....... then 441 shares times $40/sh, supposing the share price was unchanged. that gives $17,647..... so the year's profit is only $2,647.... and after tax its about $1,600 net profit.

this is also my first enrollment period. if i dont re-enroll for the next period, will they automatically do it for me?

 

[Dr Wario]

im also wondering if espp is worthwhile.
say i put in $15,000 for the entire year. divide by $34 that was discounted from $40. that equals 441 shares....... then 441 shares times $40/sh, supposing the share price was unchanged. that gives $17,647..... so the year's profit is only $2,647.... and after tax its about $1,600 net profit.

this is also my first enrollment period. if i dont re-enroll for the next period, will they automatically do it for me?

Is it worth it? well find another investment where you can make a 17% return assuming assuming no motion in market price and PM me about it. Yes, the enrollment is recurring until you request otherwise.

Something to consider about the espp (all of them) is that you are taxed at ordinary income rates on the discount the company gives you and capital gains rates for any market price increases. Attempting to clarify, suppose we use the above example where the market price does not change and returns are only acquired through the discount the company has given, this money is taxed at your ordinary income rate. Say however, you sold the stock when the market price had increased, you are taxed at ordinary income rate for your discount, but long term capital gains rate (assuming you have held the stock at least a year) of 15% on the market gain. Many companies will include the value of the discount on your w-2, but you should always verify with HR to be sure.

 

[sosoo]

i was checking my espp and it looks like no shares have been purchased for the jan-june period. they say the purchase price is either january or june the lower of the two, so i wonder if anyone knows when that will take place?

 

[farmadiazepine]

7 to 10 business days after June 30. So around July 13 or July 16, 17.

 

[Dr Wario]

7 to 10 business days after June 30. So around July 13 or July 16, 17.

The purchase price is still based on the lower of the first and last day of the offering period, the specific date the shares show up in the account is irrelevant.

 

[BMBiology]

CVS stock has been doing well. Anyone planning to sell them?