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The Simplest Way to Manage your RSUs

Don't Overcomplicate RSUs

In our experience, most recipients of restricted stock units (RSUs) make managing their company stock overly complicated. This can often result in a complicated financial situation and unwanted (or worse, unexpected) tax implications. Luckily, there is a simple, easy-to-follow strategy that could make managing your RSUs straightforward, effortless, and effective. 

A Simple Strategy for RSUs (almost) Every Recipient Should Follow

So what's the easiest way to manage your restricted stock that will not only simplify your life, but makes sense financially, as well? 

Sell your shares immediately upon vesting. 

Yup, it's that easy. Just set a notification or a reminder to ping when your shares vest, and make sell that day. Here's why we think this strategy makes sense for most RSU recipients.

Why Selling Your Shares Upon Vesting Makes Sense

So why does this make sense for most recipients for restricted stock? 

  1. You'll dramatically decrease your tax complexity because there aren't any capital gains to track or worry about. 
  2. You'll avoid building a large, concentrated position in your company's stock which can greatly increase in your investment portfolio. Instead, you'll have the opportunity to diversify your investment portfolio. 

That sounds pretty great to us! For more, check out the above video, where Trailhead Partner, Bill Mulvahill, CFP®, CPA, discusses this strategy and more. 



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