I agree with the general hubris of investing in employer stock. Most of the stock that I hold came in the form of a direct grant or in the form of 15% discounted stock that I acquired for the then stellar price of around $20 a share - the current MSFT is $77 with an estimated FMV of $83.
I absolutely plan to unroll the position. Now, here is my question: How does the mechanics of 3% drainage work? Do you take all of your non IRA money and then take 3% off the top? Something else? Sorry for asking such elementary questions.
There is no one answer to this, I believe. Some have dividends deposited into a checking instead of reinvested. With typical index divident rates, this drains 2+%. Some sell bits of stock or bonds, as needed, either once per year or month.
Your taxes and capital gains status might also impact what you sell. If supported, one could even write checks against a margin loan or a line if credit, and sell stocks later to paid off pushing gains to future tax years, but others may have more specific links to suggest.
