Employee Stock Purchase Plans

I just discovered a pretty good way to make a good and fast return. Most companies offer stock to employees at a discount (usually 15%). You buy the stock by an automatic deduction from your payroll check (1-10%). At the end of a set period, usually 6 months, the company automatically buys the stock with the discount.

The cool part is that companies may let you sell the stock immediately after you receive it. Therefore, you could be easily making a 10-13% return even if the stock doesn't go up or down in value. The reduction in return is caused by tax, but even so the remaining return makes it worth it. If you can afford it, and your company lets you, you should max out contributions to these employee stock plans. Of course, there will always be some risk (the stock could suddenly drop the day after you buy it), so consider your risk tolerance before you try this.