Sell RSU to cover mortgage
Not sure if it’s relevant here but wanted to understand if it’s a good idea to sell RSUs to cover partial payment of monthly mortgage?
Do it if you need to. But it's a much better idea to plan your finances around base salary alone. You may find yourself in hot water if you committed your rsu to mortgage payments but find that they've dropped in value by 70% by the time they vest.
Yes, it’s your income, but don’t overdo it. Many at lower levels will say no, but my base is around $200k and my TC is over $600k. It would be silly to not tap into that.
Can’t remember when I could live only on my base salary 😂
For how long and do you need to sell to make up a big difference? As others have said, it’s better to plan around your base salary. The stock price is not guaranteed and what happens if you’re laid off or when you don’t have more RSUs? But if it’s only for a few years and you know your base pay will increase to be able to cover your expenses then it should be fine. I hope you also have an emergency fund.
My plan is to cover partial mortgage payment for 1 year.
That should be fine as long as you have a fallback in case something happens to your income in that time. Some people here stretch to buy things and plan their RSUs as a stable part of their income for the long term…then their stock value drops or they’re laid off or they don’t get RSU refreshers and then they cry that they can’t afford their life. Don’t be one of those people.
If your mortgage interest rate > (your RSU's expected growth rate - taxes) then yes. I don't think Amazon will grow by more than 10% yoy, if your interest rate is >6% I would sell the RSU to pay the mortgage.
Yes. If this is your primary house then yes
Why do you say so?
Because it’s ATH now. Expecting a downward swing