Legal to take loans on RSUs?
Hey Have a ton of CC/ loan debt from days as a student, failed ventures, mistakes etc. Wondering my best bet to avoid paying high interest 17-19% Is it legal to take out loans on RSUs for a private company? Similarly, if a friend wanted to buy the stock at current value (itd be a signed contract as it’s not transferable now) is that OK (under the radar). Thanks
Correct me if there is already a well defined structure for this. But as far as I know only wealthfront allows you to leverage against yours portfolio. And it’s an awful idea. Why don’t you sell shares on the secondary market if you need liquidity
is there a secondary market for RSUs? Would rather sell, pay off, and move on than take on additional risk.
I was assuming you’re talking about UBer RSU
Might be legal? But might expose you to more risk.
Good points. Loan might not be the best option. there are also individuals interested in buying the shares at today’s value, though they can’t be transferred today, which would in essence minimize my risk as Id be passing them off to X individual at a discount in return for capital now to pay off my loan?
What happens if you lose your job? Or switch jobs before IPO? What if your tax situation changes, or the share price rockets which makes it appear you have made a fortune (but haven’t paid the tax). What if the company never IPO? If you have a family, what happens if you die? (Do your family owe someone shares they don’t own?) I have no answers to these questions...
Vested or unvested RSUs? If vested some companies will buy them as private equity transaction
vested
OP, is your credit score good? You may have balance transfer offers from credit cards. They're interest free for 12 to 18 months. It's one of the best wsys of avoiding high interest fees
Dunno about legal, but counting the eggs before theyre in a basket is dumb.