Suggestion 401k or ESPP

mms said: "Hello, Just wondering what you guys think. At my job, I have both a 401k and an ESPP (Employee Stock Purchase Plan). As an employee, I get a 15% discount on the closing price of our stock (TRB). Currently its price per share is $36.61. Since I’m new to company, I have been there less than a year; I don't get the employer match. I'm putting about $200 a month in my 401k and $100 in my ESPP. I have a greater return on my ESPP due to the discount. Do you guys think it would be better to put the entire $300 in the ESPP and skip the 401k until I get the employer match? I cannot afford to put much more into either at this time. Thanks for any help!"

HappyHarry said: "The discount is appealing, but remember the maxim: don't put all your eggs in one basket! At least you have some diversification with 401k."

mms said: "Thanks! Do you think I should just increase my ESPP and reduce my 401k by a $100? I would increase my 401k when I start receiving the company match. Also I do have a Roth and Rollover IRA with Scottrade. I have about a $1000 each in the following compaines: MSFT (45 shrs @ $26), NFLX (50 shrs @ $20), MOT (45 shrs @ $22) and $700 BREAV (40 shrs @ $17.52). I have another $1000 left thinking of putting it in HAL. Also supposed to be receivng my company match from my last job that should be another $14,000. Don't know if I have to worry about the diversification to much. Plus I can always reduce my company match anytime. Thanks!"

HappyHarry said: "Sure, sounds like a decent plan. Its amazing just how much $100 a month can add up."

mms said: "Thanks! It does add up fast. With the company match I would be crazy not to take the free money. My last company all I needed to put in was 2% and they would give me a 6% match. That's the best match I have seen."