Frequently Asked Questions

A common consensus is to sell stock that is delivered from vested RSUs as soon as possible, as they are taxed identical to other income like your wage or bonus. Said another way, its as if you used after-tax take-home pay to go buy shares of stock on the open market. If you wouldn’t use your take home pay to buy stock, why should you keep the shares of stock from RSUs?

However, for nearly every rule of thumb, there are exceptions. For example, if you have met your other financial planning needs and have a level of concentration risk that is suitable, owning stock in a company can be a suitable part of your investment strategy.