Author Topic: RSU vest coming up - 2 questions  (Read 326 times)

des999

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RSU vest coming up - 2 questions
« on: June 05, 2020, 03:46:48 PM »
I have my first round of RSUs coming up on the first vest date.  I think I have done plenty of research, but have 2 quick questions.

1.  my company stock has gone up 95% since it bottomed out in March, does that change your mind on whether you'd hold on to it for a while before selling?  I do have quite a bit more that will vest over the next 3 years, so it's not like I will miss out completely if it jumps in price.  I expect some things to happen that makes me think the price should not fall (but who knows with Covid).

2.  I think I can put a stop loss on the sale.  Why not put a stop loss at about $10-15 below the current price, this way, if it goes way up, I get to enjoy the gain, and if it doesn't, I keep my loss acceptable.  thoughts?

current price $317 (incase that matters)

I appreciate any thoughts?


ixtap

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Re: RSU vest coming up - 2 questions
« Reply #1 on: June 05, 2020, 03:54:57 PM »
No, it doesn't change. Still sell.

As you said, you already have more stock. And a salary coming from this company. Diversify a bit.


des999

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Re: RSU vest coming up - 2 questions
« Reply #2 on: June 05, 2020, 03:57:51 PM »
pretty much what I expected/was planning to do.  wanted someone to confirm :)

appreciate the quick response.

secondcor521

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Re: RSU vest coming up - 2 questions
« Reply #3 on: June 05, 2020, 06:37:28 PM »
Stop losses aren't guaranteed to work.

With a volatile stock which happens to be my employer, I would at all times cap my risk at 5% of my total portfolio *at most* and would sell my RSU's to get my AA down to that point (if not even below 5%).

js82

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Re: RSU vest coming up - 2 questions
« Reply #4 on: June 05, 2020, 07:29:51 PM »
RSU's are taxed when they vest whether you sell them or not, hence there's no real tax incentive to hold vs. sell.

Given that there's no tax benefit, stick to your planned asset allocation(which presumably doesn't include accumulating a disproportionate amount of your employer's stock).