Let's talk RSUs

[Matt]

If you had .25M in rsu vesting in 1 year are we selling? Kind of think showing up to work every day is enough of a risk, sell half and keep half? Not 100 percent clear on the tax implications. Open to listen to some strategies!

[98aggie77566]

Tax implications…they are going to tax the initial award no matter what. They will either take out shares to cover taxes at vesting, or you pay at the end of the year. I have them take out, and the standard % they take out is not enough!

As for what to do with them after they vest and taxes paid….that’s a question for 1) if you need the $ for a purchase/bills/etc and 2) how much confidence you have in the company.

Me personally, my theory has always been that I don’t want my investments and paychecks riding on the same company. So I always sold and rolled into market funds. With my employer at the time, it was a good decision and the market significantly outperformed the company stock.

However, when your company shares are (or might)
going through the roof, your decisions get a little more entertaining.

Congrats and good luck!!

[Matt]

Thanks 98aggie77566 literally don't owe anyone a dime. I have always lived like nobody else so I can live like nobody else later. I was thinking sell half and let the other ride after seeing how things play out. I will see how the theatre plays out. AND, you aren't the first person to mention about not enough taxes being payed out if you sell back. Will do some more recon and thanks for the insight.

[Mocity31]

Question. If you had an account at Fidelity or any other broker that charges fees, be it 1% annually, and you are 100% allocated in Mutual Funds, Etf's, stocks, CD's whatever with no cash balance how does Fidelity get their 1%?. Do they take shares?

[Jdusek]

Like Aggie said they will sell the number to cover estimated taxes. What I do is keep that information what the price was when vested. If you sell years later you will need that. If stick goes up you will owe more tax. Now I have some vesting next month our stock is high so I will sell and vest in something house. Right now you can get pretty good and safe 9-12 months cd’s.

[Landlocked]

It’s the carot at the end of a string. Well from an employer’s point of view.

[Landlocked]

Can’t figure out how to edit…I assume you’re talking Restricted Stock Units.

[Landlocked]

Never mind Aggie is right. But rtu’s are still a carot on a string.

[Matt]

Never mind Aggie is right. But rtu’s are still a carot on a string.

Carrot on a string to keep you around but even half a carrot beats a poke in the eye? Probably looking at keeping half in , in case things get promising.

[RRbohemian]

Yep, I had my RSUs setup to take out shares to cover taxes at vesting. But for me, I didn't sell my shares, I held onto them. I didn't need the money and the stock was doing very nicely. And that strategy paid off for me since I was able to retire when I felt I couldn't do the corp America thing any longer. Now, if only I could sell them now without having the illegal irs rob me of my money that I earned working my butt off for!!!!!!!.