My current employer offers employees a chance to purchase company stock at a guaranteed discount. You enrol in 6 month periods and allocate a certain percentage (2% and up) of your salary towards purchasing stock. While there is a maximum number of stocks that you may purchase at one time (it’s a very high number…), the stocks are yours without restriction and you can sell them at any time you wish. The deadline for signing up was this past Friday.
I debated for a while, but ultimately, decided not to sign up. What!?
It wasn’t an easy choice. There are obvious financial benefits:
However, sometimes (even for me!) the choices that seem to make the most sense are motivated by reasons other than pure numbers.
Even though it was tempting to sign up and make a quick buck, in reality, I would have only accumulated a handful of shares by the end of the 6 month purchasing period. There is not really enough potential for profit to justify reworking my budget ahead of schedule. Instead, I think I will wait until the next enrolment period. At this point, I should have received my raise and be able to easily cover the 2% contribution. Perhaps even more!
Have you ever chosen to walk away from a potential investment or income opportunity? What would you have done in my situation?