Potential Financial Steps for T-Mobile Employees in September
By Kevin Estes
How is it September already?!
The good news? We still have a third of the year left!
Potential Steps for T-Mobile Employees this Month
5 potential steps T-Mobile employees may take in September include:
Select Employee Stock Purchase Plan (ESPP) contribution %
Book Thanksgiving plans
Begin benefits and insurance review
Replenish emergency fund
Schedule remaining Paid Time Off (PTO)
Select ESPP Contribution %
Participating in the Employee Stock Purchase Plan (ESPP) may not be right for everyone. Nonetheless, it’s worth considering.
The primary benefit is:
15% discount off the
Lower of the price at the beginning and end of six months
Let’s say the stock price is $100.
If the stock stays the same over six months, it will be purchased at $85 and have a built-in gain of $15.
However, if it grows to $110, the stock will still be purchased at $85 and have a larger built-in gain of $25.
Disadvantages include:
Reduces cash flow
Locks up money — usually until purchase
Increases taxes, especially if selling right after purchase
“What If I’m Laid Off?”
Unfortunately, there have been layoffs at T-Mobile recently. It’s bad news / good news with the ESPP.
Bad news: a participant no longer employed on the purchase date misses the opportunity to buy at a discount.
Good news: the participant will instead get the cash back. It’s almost like a small - yet growing! - emergency fund.
Book Thanksgiving Plans
It’s important to plan ahead because:
Hotels and short-term rentals book out, especially at popular locations.
Last-minute flights are normally more expensive.
People get busy.
Avoid the drama. Book now.
Begin Benefits and Insurance Review
Open enrollment is coming right up! Now’s a good time to check on your benefits.
Are you expecting any major expenses this year or next?
This year. If you’ve already met your health insurance deductible, try to move healthcare expenses up into 2023.
Next year. You may need to increase your coverage to pay more of the higher upcoming expenses.
Do you have unused “use it or lose it” funds?
FSA = Flexible Spending Account, which needs to be used in 2023 (with some carryover)
HRA = Healthcare Reimbursement Arrangement, which also needs to be used in 2023 (again, with some carryover)
HSA = Health Savings Account and is NOT “use it or lose it”
If you currently have large “use it or lose it” balances, would it make sense to reduce your contribution with open enrollment?
Replenish Emergency Fund
Huzzah for all you accomplished this summer!
That may have depleted your emergency fund. It may be time to top off cash reserves heading into the holiday season.
Reaching the Social Security income maximum of $160,200 might help!
Schedule Remaining PTO
“Use it or lose it” doesn’t just apply to spending and reimbursement accounts.
Paid Time Off (PTO) is there for a reason. Use it!
T-Mobile employees can usually roll over up to two weeks (80 hours). However, that has fluctuated throughout the years and has been as:
Low as 40 hours
High as 120 hours (COVID-19, merger)
Play it safe and plan to carry over no more than 40-80 hours.
Scheduling PTO early also helps avoid scheduling conflicts with teammates. Dibs!
What’s Missing?
Is anything missing from this list? If so, please let me know!
If you’re interested in a review of your specific situation…
Disclaimer
In addition to the usual disclaimers, neither this post nor this image includes any financial, tax, or legal advice.
