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.Â
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!