Thoughts on how to handle RSUs?

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  • #82422 Reply

      Should I sell them as they vest and invest in something else (I would invest in mutual funds) or hang onto them?

      A little background….right now I’m making $195k and our portfolio is right around $1M (about $200k of this is RSUs….only about $60k is vested). As part of my benefits, I will continue to receive 40% of my salary in RSUs annually. We have an 8yo and 11yo with not much money earmarked for college and are treating the RSUs as not only a boost in our portfolio but also a fallback for their college as I doubt we’ll have enough in their 529s to cover it when that time comes. 

      I’m not sure it’s a great idea to have an ever-increasing % of my portfolio on a single stock. The company I’m with went public in the last couple of years and the stock hasn’t really taken off. I’m being conservative and assuming that the stock price will continue to hover around it’s current price for the foreseeable future.

      I’d love to hear from people who’ve dealt with this first-hand. Thanks!

      #82423 Reply

        I had lots of RSU’s when I was working. I always sold them as they vested and bought index funds. You already are depending on your company’s success for a paycheck, don’t also link your investing success to them! Diversify away from the risk of a stupid or corrupt CEO.

        #82426 Reply

          I do not have experience with this personally.

          I do think it’s wise you consider selling RSUs when they vest so you are not in the Enron zone. If it was me, I’d sell them asap get money into other savings vehicles with index fund options.

          Start with IRAs/401ks, then either brokerage accounts or 529s

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