When do you sell vested RSUs?

Groupon
loyalexee

Go to company page Groupon

loyalexee
Dec 8, 2021 26 Comments

#Amazon #fb #google #apple #msft
#investments #personalfinance

168 PARTICIPANTS SELECT ONLY ONE ANSWER
VOTE VIEW RESULT

comments

Want to comment? LOG IN or SIGN UP
TOP 26 Comments
  • Amazon
    UGNv63

    Go to company page Amazon

    UGNv63
    Hot take: You don’t know what you’re doing if you don’t sell on vest
    Dec 8, 2021 4
    • Amazon
      UGNv63

      Go to company page Amazon

      UGNv63
      There is absolutely no difference, at time of vest, between a cash bonus and getting your stock.

      So unless what you would do with a cash bonus is spend it entirely to buy a single company stock, then you should sell on vest.

      A lot of us get >100k/yr in RSUs. If you need a reason why putting 100k/yr into a single stock (which is also where you work) is a bad idea…
      Dec 8, 2021
    • Amazon
      UGNv63

      Go to company page Amazon

      UGNv63
      If you want to know what you should do instead: immediately sell your stock on vest and put it all into something like SPY
      Dec 8, 2021
  • Facebook / Eng
    _eli5_

    Go to company page Facebook Eng

    PRE
    IBM
    _eli5_
    Treat the shares like a cash bonus. Would you use that money to buy your company's stock? If yes then hold. If no then sell and invest somewhere else.
    Dec 8, 2021 1
  • Intuit
    ghggfj

    Go to company page Intuit

    ghggfj
    Depends on company, if groupon immediately. :)
    Dec 8, 2021 0
  • Rivian
    doge.co

    Go to company page Rivian

    doge.co
    One option should be once they convert to long term capital gains.
    Dec 8, 2021 6
    • Rivian
      doge.co

      Go to company page Rivian

      doge.co
      If the price is higher than your cost basis, that’s treated as capital gains. So if your cost basis is $50 and it’s $100 when you vest, you have $50 per share in cap gains.
      Dec 9, 2021
    • Amazon
      UGNv63

      Go to company page Amazon

      UGNv63
      The cost basis is set at vest and it is set to the price of the stock at vest. So there will never be, by definition, any capital gains if you sell at vest. You pay zero capital gains by selling on vest and then you can diversify with that money.
      Dec 9, 2021
  • Microsoft / Eng
    okdoto

    Go to company page Microsoft Eng

    okdoto
    For MSFT, I guess I’ll never sell
    Dec 8, 2021 0