Hi all, Newbie at investing here. I have been researching and learning about what to do with my RSU and ESPP. It seems like some people sell their RSU as soon as it vested, some wait till it becomes long term, some never sell. I do plan to use these stocks for a house down payment in the next couple years. Any advices or please share your personal handling of RSU and ESPP? My plan is to start selling some long term RSU and keep some cash to prepare for down payment (I know the market and interests are not great right now….but don’t want to wait till last minute to get the 💰 ready) Thanks in advance for your kind suggestions! TC: 325K #Apple #Stocks
Personal opinion: if it’s AAPL, no need to sell them right now. I will expect an interest rate drop mid next year and it will boost the market. It will also give you a chance to cash out with long term capital gain, probably at 15% rate, instead of the marginal income tax rate at the moment. AAPL is also a mega cap stable stock. However, I would divert my non-RSU and ESPP money to a less tech focused portfolio just to be on the safe side
Wait until the rolling long term schedule… in other words, sell after a year. So basically once you get a year of RSU’s you’ll be selling every six months the ones you received a year ago… it’s not that difficult. I personally keep all my stock because I don’t care about it. I care about my base salary. That’s what I use to live. Your stock is your retirement fund. You are at the best most stable company there is to-date and I don’t see that cha going anytime soon, but it could. So far, I keep my stock for retirement dividends and growth. Your mileage may and will vary.
Why though? You’re carrying way too much of Apple , especially since they’re your employer too. If you sell immediately, you theoretically wouldn’t have any gains or losses upon which to be taxed, aside from the grant itself which goes in your w2
Check out this post! "FAANG stocks over 5 years (2017 to 2022 May) (Investments & Money)" https://us.teamblind.com/s/3esjmmw4
Thank you all for the great advice! 🙏🏼 How do you usually diversify once you sell? I am thinking to put them into index fund such as VTSAX. And maybe small percentage into Crypto 😅
Index funds are fine. You could also just buy a few other stocks. You just don't want to be over invested in a place you also get your paycheck from
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RSU - Sell asap and diversify ESPP - Wait 1 year and sell
Can you please explain justification?
First part is your taxed at grant anyways so sell it at basis unless you want your investments to be heavy in company stock. Second, long term capital gains tax vs short term W2 level tax.