First big RSU grant
I get my first big RSU vest on august 15 after staying a year! Yay! What should I do? Update: I’ll get ~$100k in RSU and my thought now is to sell and use the money to buy a multi family real estate or put it in a good index fund. MSFT hit up to $360 recently so just thinking if I should sell all vs half if it stays around $325 or wait and hope that it will get back to ~$350 before selling all. What do you all do with your RSU?
Email HR that you want to tip the company 15-20% of your RSU's
Or do what I do and ask HR to tip you. I told our HR that here in the US we expect tips for good work and that if I don't see 18-20% extra every month (in cash so I don't need to pay tax) I'd be speaking to their manager. My name is Karim but I always sign my email as "Karen", I think that helps them know I'm serious
Layoffs happened so company's could do stock buy back because people stopped tipping.
Sell everything. You will pay taxes that make it essentially cash at that moment - so unless you would write a check to buy even more of your company stock out of your checking account right now, you sell and diversify.
Would he pay tax? If so, isn’t it better to hold in order to gain interest on the tax? At least - it’s might be better.
You get a certain amount immediately withheld for taxes, so if you sold everything you have the second it hit your account you wouldn’t owe more* Caveat being the withholding isn’t always right, iirc it’s a flat 22%
Sell covered calls
Many companies ban that for employees
Not Microsoft, but I’ve seen in most cases you make more money long term by just holding the stock instead of messing with options.
Ayyy august 15 vest gang
🫰🫰🫰🫰
Let's gooo
I always consider unvested RSUs in my allocation strategy. If MSFT moons, you’ll still get a big upside. Only risk is getting fired from MSFT and not getting to realize those unvested gains (but if you get fired you probably want to be diversified out of msft anyway)
Do the needful and get an Onlyfans account.
Always always sell on vesting and diversify. Treat it like cash. Would you buy Microsoft stocks for the amount you’re getting if you had it in cash? Most likely not. You already work there, so don’t put all eggs in one basket. A friend of mine kept on holding onto stock in a past job. At the height he had north of $2mm and was looking forward to an early retirement. Then it dropped 90% and what he had left barely covered the extra taxes he owed on it. Don’t be like him.
Yeah, but MSFT is one of the most diversified tech companies so it isn't a bad option to hold MSFT for long run. What company did your friend work for?
peace4u: Then hold if you want to. I would just never expose myself to a risk like that. Not revealing my friend’s company. He might read this.
How much was it ?
I like to do Dollar Cost Averaging in reverse. Meaning I sell a certain percentage each month.
That’s an interesting idea. Have you done backtesting?
And how would you do that if OP is subject to blackout periods?