I’m trying to figure out the best strategy for my vested company RSU’s...thoughts?
20%
What if the stocks (rsus) are down?
0%. I sell as soon as they vest. I already am invested in the performance of the company in the form of my salary. If someone handed you $100k in cash, would you put it all in your company’s stock?
0%. I sell immediately and diversify into a 40/60 stock/bond portfolio. I also buy rental properties which require a lot of cash.
The advice I have received is that if there is evidence that your company stock is a strong investment, you can keep up to 20% of your net worth in the stock. If there is some question about the company’s long term prospects, you should hold less, possibly selling it all. ...but 20% was the max recommendation from my financial planner.
Where is the 20% number coming from? It feels like the financial planner covering his / her bases in case AMZN moons.
Thank you for the comments everyone!! This is super helpful
was 60%... now it's like 30%. I should probably keep less in company stock.