Photo of Kevin Estes smiling and wearing a dark suit with a black tee shirt. Behind him is an out of focus wooden background.

Hello, I’m Kevin - a financial planner who helps tech professionals and their families live great lives.

Make yourself at home - we'll get to potential steps for September in a moment.

But first - here are some links you may want to save for later.

Are Employee Stock Purchase Plans Underrated?

Is Your Cash Starving?

Schedule Your PTO ASAP

Now, let's get on to the blog! 😀

Fall foliage background with a partially transparent white box. September on top. Select employee stock contribution %, Book Thanksgiving plans, Start benefits and insurance review, Replenish emergency fund, Schedule remaining Paid Time Off (PTO).

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

Five steps T-Mobile employees might take in September include:

  • Select Employee Stock Purchase Plan (ESPP) contribution %
  • Book Thanksgiving plans
  • Start 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 a 15% discount off the lower of the price at the beginning and end of six months.

Let’s say a stock’s price is $200.

  • If the stock stays the same over six months, it would be purchased at $170 and have a built-in $30 gain.
  • If the stock price rises to $220, it would be stil purchased at $170 and have a larger built-in $50 gain.
  • If the stock price falls to $180, it would be purchased at $153 and have a smaller built-in $27 gain.

Title 'Stock Ownership vs. Employee Stock Purchase Plan' on top. Two scenarios consider if the price increases 10% or falls 10%. In both cases, contributing to an ESPP performs better than owning the stock.

Disadvantages

Some disadvantages of participating in an Employee Stock Purchase Plan include:

  • reduces cash flow
  • locks up money — usually until purchase
  • increases taxes, especially if the shares are sold right after purchase

“What If I’m Laid Off?”

Unfortunately, there have been layoffs at T-Mobile. There’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.

For more, check out:
How Does an ESPP Work?
Are ESPPs Underrated?
Own Stock or Contribute to ESPP?

Book Thanksgiving Plans

It’s important to plan ahead for Thanksgiving travel:

  • Hotels and short-term rentals fill up, especially at popular locations.
  • Last-minute flights are normally more expensive.
  • People get busy.

Avoid the drama. Book now.

Title 'Book Thanksgiving!' in the middle. 'Gratitude turns what we have into enough' below it. The background is of a cornucopia with fall fruits and vegetables on a wooden table.

Start Benefits and Insurance Review

Open enrollment is coming soon! Now’s a good time to check on your benefits.

Are you expecting any major expenses?

  • This year: If you’ve already met your health insurance deductible, try to move healthcare expenses up into 2024.
  • Next year: You may need to increase your coverage to pay for higher upcoming expenses.

Do you have “use it or lose it” funds?

  • FSA = Flexible Spending Account. Funds need to be used in 2024. (with a possible $640 carryover to 2025)
  • HRA = Healthcare Reimbursement Arrangement. Funds also need to be used in 2024. (also with some carryover)
  • HSA = Health Savings Account. Funds are NOT “use it or lose it” and don’t to be spent this year.

If you currently have a large FSA or HRA balance, would it make sense to reduce your contribution with open enrollment?

For more, check out:
Pros and Cons of a Health Savings Account
How Disability Insurance Works!

Play Video: Health Savings Account Pros and Cons

Replenish Emergency Fund

Huzzah for all you accomplished this summer!

Those activities may have depleted your emergency fund. It could be time to top off cash reserves heading into the holiday season.

Restricted Stock Units

Recently issued T-Mobile RSUs are now vesting every six months, which is good news. Many employees just had some stock vest! Those shares might fund an emergency and opportunity account.

For more, check out:
Is It Worth Holding Employer Stock?
What to Do With RSUs?
How Are RSUs Taxed?

Social Security Maximum

Reaching the Social Security income maximum of $168,600 for 2024 might also help! About 6% of covered workers earn more than the Social Security taxable income each year.

Title 'Is your cash starving?' on top. The photo is of someone holding open a wallet with a single $1 bill in it.

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 limit has fluctuated throughout the years:

  • as low as 40 hours
  • as 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. Call dibs!

Title 'Schedule Your Paid Time Off As Soon As Possible!' on the left. The photo is of someone holding a metal alarm clock in front of a purple background. scaledfinance.com, a purple line, and the multi-color Scaled Finance logo are on the bottom.

Hey, thanks for reading my post on potential financial steps for T-Mobile employees in September.

Just a reminder, I share a lot of resources that can help you.