Investing in index funds vs keep your vested RSUs
For the past 4-5 years, I have been selling all my vested RSUs and investing them consistently in fidelity index funds. I firmly believe that buying and holding index funds for 20-30 year old period is a good strategy and I want to achieve financial independence as soon as possible.
I just wonder if i’m missing the boat by not holding on to my vested RSUs (considering the growth of FAANG stocks over the past couple of years). The problem is I know that if I was given an equivalent amount of cash, I wouldn’t buy my company stock since that’s too much risk with holding so much money in just 1 company (for me personally)
What do you guys tell yourself so that you consistently invest in index funds? Do you guys hold some percentage of portfolio in your vested RSU stock and the remaining in index funds? If yes, how do you rebalance your portfolio?
TC $300k (don’t work at amazon any more)
#investing #indexfunds #rsus #tech
comments
Hell no. I would buy index funds.
I'm not going to bet my entire financial future on one company when the market as a whole good long terms returns. So I immediately sell my RSUs and reinvest in my normal portfolio. Easy decision.
The ONLY case that would be different is if I had insider information suggesting the stock would go up. But alas, I do not. I also don't buy the line of thinking that keeping some stock is "betting on yourself" or "betting on your org". Maybe at a small company. But at a massive multinational? No way. I'm not moving the needle.
With index funds, i’m just on a buy and hold strategy.
Definitely going to look into holding some of my vested RSUs for some period of time.
other sucker buys it higher. In my late thirties I’ll probably reduce the speculative number to 20% or carve out time to do fundamental research