Sell most on vest or hold?
Early 30s with around $2 million of Qualtrics’ stock vesting over next four years. This represents over 80% of my net worth. I believe that the stock will continue to go up but am also aware of the risk of having the majority of net worth tied to one company. I’m curious what others do in this situation. Sell most on vest and diversify until % are more balanced? Bet big on your company? Since I’m earlier in my career I’m leaning towards selling about 10% on every vest to diversify but keeping the majority in Qualtrics. FWIW I do invest roughly $100k a year and can continue to do so even without selling stock. Would love thoughts / advice.
May be consider diversified portfolio of Fidelity growth pool, Index, and Crypto
It’s not a binary decision. What percentage of your vesting stock do you want to keep in Qualtrics? 0-100.
Right now I think I’d keep 80%+ in Qualtrics but am wondering if that’s a terrible idea
Here’s a tip: most Wall Street fund managers won’t stomach more than 8% in a single company. Why should you? And why qualtrics other than the sheer dumb coincidence that you happen to work there?
Here is a story I heard from a now retired ex skip level. During the height of the tech boom in 2000 he also had over $2M in stock but didn't want to sell to pay $1M in taxes. Rode it down to $0 because once it dropped 40% to 50% really quickly the thinking goes it is a correction and it will come back. Never mind you need a double or 100% gain to get back to even. Company eventually went out if business and he lost everything as far those shares go. Now I am not saying we are in that type of market but I would have some numbers on the downside for stop losses. Usually most employee brokerage accounts don't allow stop losses so you may want to move vested shares out to protect downside. A parallel option is to slowly take profits on way up every year or 6 months. $1M taxable account goes pretty quickly slowly even in a conservative portfolio mix.
Terrible idea to keep 80% on qualtrics at vest. I'd sell 60% at least. Remember you have unvested stock which you can't anyhow.
Ok I just looked at a chart of XM and this party is just getting started. Suggest defensive advice I originally suggested above. If it was me the first stop is around $39 and I am blowing out the position with a price close below $29 which would be a new all time low.
So setting a stop-loss around $33 so it hopefully sells no lower than $29?
If you had 2m in cash right now how much would you invest in Qualtrics?
I would sell on vest and if confident in long term then buy long term options cheaper
Well ~40% will go to taxes upon vest. With the remaining I would suggest sell on vest and diversify unless you feel strongly that qualities has room to run.