Sell or hold the RSU?
My RSU are vesting in chunks at average price of $29. Fortunately, Pure Storage stock price has not eroded as other tech stocks so i am in 5% average profit. Given the future market conditions, broader stock market and recession fears looming, should i sell the RSU and hold the cash or continue holding the RSUs?
Sell immidiately on vest and invest in broader index funds... Diversify your risk
Sell on vest. The stress reduction is measurable, and you need to sell some anyway that cover the tax difference in most cases.
Don’t post this question on reddit!
Hodl I’m on 60% loss after vesting cuz I didn’t sell
The right question on the vest day is not “whether I need to hold RSU or get cash”, but “what should I do with the cash value of just vested shares?” Your company is one of thousands in which you can invest, and when you hold RSU, it means that you decided to invest into it regardless of the fact that your base salary depends on it too. So if you think it will be doing much better than others, you should hold RSU. Otherwise sell and probably invest into something else, maybe even into CD or bonds if you’re risk-averse. I understand that the market may go down even further, but it’s already far from its peak, so I would rather buy now than sit on the cash until I can buy higher. It should pay back in the long run. But this decision should also be based on one’s safety net, that should be higher during these “unprecedented times” (c)
This is gold! Firstly, let me admit that if I could predict the direction of stocks with any confidence I wouldn't be on blind :) With that out of the way, the key question boils down to this: if I were given $x today, would I buy PSTG? For me, based upon my personal belief and financial situation, the answer has always been "in cash" or "something else is a better investment"
If you were given the cash amount of your RSUs, what % of that would you buy company stock with? That's how much you should keep.
Sell. The last thing you want to have happen is that your company gets into trouble causing both you to lose your job AND your savings to crash both at the same time. In fact you could consider not investing in the tech industry so that your savings have a chance of holding up even if the whole sector is bad. Extended unemployment is a bigger risk to most people's finances than systemic stock market risk is.
I never sold my RSU. Now I feel I should've sold some and invested in index funds. I think I should slowly sell some of them and invest in VOO.
Pstg trades in a channel up to $35, with a downside bias in low $20s. Rn, at $31, selling is not a bad idea, unless you firmly believe they will break out above $35. Another thing you can do is sell calls against your shares. Imho you should look into selling, padding your savings, and reinvesting into other high growth stocks that sell more critical products. Right now world is your oyster. Even an index fund has a higher chance of giving you 20% over the next 12 mos, than Pure breaking above $37 (same 20%).
I sell as soon as it vests every time