Should I purchase company stock through my ESPP?

Are ESPPs good investments? These plans can be great investments if used correctly. Purchasing stock at a discount is certainly a valuable tool for accumulating wealth, but comes with investment risks you should consider. An ESPP plan with a 15% discount effectively yields an immediate 17.6% return on investment.

How long should I hold ESPP shares?

one year

The advantage of qualifying for long-term capital gains is that these rates are usually lower than your ordinary income tax rate, but this strategy requires you to hold your shares for at least one year after you purchase them.