So for the first time in my life, my stock options vested. Yep, I got a (small) payout by cashing out some stock options I was granted when I was hired a few years ago. I also purchased some stock via my company’s stock purchase plan and sold it.
So for the first time in my life, my stock options vested. Yep, I got a (small) payout by cashing out some stock options I was granted when I was hired a few years ago. I also purchased some stock via my company’s stock purchase plan and sold it.
Now, my company does all this stuff through E-Trade. That seems fine, and the transaction was straightforward. But oh, my lands, the fees! Fees for the trade. Fees for the transfer into my E-Trade cash account. Fees for the completion of the sale. A fee to withdraw the money from my account.
I did the math. With my employee stock purchase plan, due to all the fees, I actually LOSE MONEY investing in my company unless there’s a substantial stock gain between vestment and sale. The options are basically free money, so “yay!”, but losing money because I invested it is just not something that I wanted to do.
There are a couple ways to solve the problem. If I doubled my ESPP contribution, I’d make some money. A little, but some. If I eliminated it entirely, I’d save all the fee money, but eliminate a regular disbursement — a kind of “forced savings” — that I like because it gives us infusions of cash while we budget for a lower amount.
Decisions, decisions. Regardless, E-Trade charges too many fees for my liking.