Sell or keep Amazon RSU?

Amazon
bluesky22

Go to company page Amazon

bluesky22
Mar 30 29 Comments

Hi everyone

I have 1 RSU coming up for vest in April - not sure whether to.pay 50% tax to keep it or sell it all? With the upcoming split is it wise to keep the stock? (Amazon employee)

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TOP 29 Comments
  • Always sell company stock when it vests regardless of the company or outlook.
    Mar 30 9
    • The logic is to deversify and get out before any capital gains. Holding any single stock is gambling. What if there is a bad quarter and stock goes down and you get RIFd? Also, the S&P has outperformed META and AMZN the last two years and many think tech is still overvalued. Keep a small amount of you want to gamble and invest the rest in an ETF or diversified portfolio.
      Mar 31
    • Amazon
      qgNI11

      Go to company page Amazon

      qgNI11
      If I had held onto my (420+) shares that I got 5+ years ago when the stock was around $700/share, I could be retired today. 😐
      Mar 31
  • Google / Eng
    dogfoodie

    Go to company page Google Eng

    dogfoodie
    You're paying tax on the vest regardless of whether you sell it or not.
    Mar 30 1
    • Gopuff
      HnuW04

      Go to company page Gopuff

      HnuW04
      And since it’s one share I don’t think he’ll be able to defer taxes and keep it. Maybe they let you withhold extra out of your base paycheck
      Mar 31
  • Meta
    IITL80

    Go to company page Meta

    IITL80
    If you got the payment in cash, would you use it to buy Amazon stock? If yes, hold. If no, sell.

    If yes and this is the first time going through this, I'd recommend selling it, putting it in your bank account, and then buying it back again. This may seem silly but you're otherwise likely fooling yourself if you think you'd buy it.
    Mar 30 1
  • Ruckus Wireless
    tcsbay

    Ruckus Wireless

    tcsbay
    When in doubt cash out 50% and let the remaining ride.
    Mar 30 0
  • Amazon
    bluesky22

    Go to company page Amazon

    bluesky22
    OP
    I'm a single person without any commitments so don't really need the cash for anything immediately - if I had extra cash I would probably invest in an etf as I already have 2 Amazon shares I got before I joined the company and they haven't gone up much to be honest...wish I had invested that in Vanguard instead...
    Mar 31 2
    • So you answered your question. You should sell and buy an ETF at vesting date. Maybe occasionally keep a share of Amazon but try and keep it under 5-10% of portfolios.
      Apr 1
    • Amazon
      bluesky22

      Go to company page Amazon

      bluesky22
      OP
      In second thoughts maybe I should sell just before the split happens? I understand that split doesn't affect value of share and its just same pizza cut into slices now but share split will increase demand and demand will drive price up before the split happens like it did with Tesla right? - so maybe its worth holding until the vest date and selling just before split happens or just after split so I get the 20 shares? (I'm a Gemini- yes this is why I'm always confused LOL)
      Apr 5