I'll be joining uber soon and I should get 100k worth of rsu this year. I will have to sell 35% of stock every month to cover my taxes. I'll be left with around 5.5k worth of stock every month. I am planning to sell majority of my stocks every month and re invest the amount in some stable stock or fund. Is this a good idea or I'll end up paying too much in taxes (regular tax + capital gain tax) which I cannot recover from my re investment? What does people at Uber prefer to do? Blind Tax TC : 295k #uber #rsu #stockmarket #personalfinance #investments
You don’t have to pay capital gains tax if you sell immediately. Think of it as income
Thanks for this I wasn't aware of this
No short-term capital gains tax if you sell vested RSUs immediately. I personally always sell my RSUs immediately and buy ETFs
Sell and diversify. No brainer. You can't predict stocks you are always better off spreading it around
Agreed Thanks for the suggestion 😀
If you get 100k stock vested, and let’s say your withholding is 30%. You will only get 70k worth vested. It’s exactly like if you got a bonus Then if you sell immediately, no tax. If value becomes 75k, then you will get taxed 5k capital gains. If 65k then capital loss. So yes sell immediately and diversify.
I am pretty sure this is wrong
This is correct. Don't know what you think is incorrect.
It’ll be $50k in stock before the year is out
What makes you think you’ll have any capital gain with Uber stock?
🥺 (facts)
The way I view it is that I already have exposure to Uber stock in RSUs. If Uber stock sky rockets then I can just wait longer to vest so I can benefit from that upside while not being hurt by the downside. Since I’m early in my career (100kish NW) it’s putting too much risk into one stock that does not have the best track record
Sell naked calls expiring on RSU vest date. Invest the gain on index 🙃
That’s a good strat, I’m definitely going to use that
Isn’t this against the trading policy?
The answer is always yes to that even if you think your company stock is stable
Always diversify. You’re invested enough in the form of future RSUs & Uber signing your paychecks.
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Women, help me understand why this is inspirational
There's no difference in taxes to diversify.
I am talking about short term capital gains tax Capital gains tax is basically a fee I pay to liquidate my vested units Wouldn't it be too much?
It's the difference between your vest price and sell price. If you sell immediately, it will be negligible.