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Learning, Sharing, and Teaching => Investor Alley => Topic started by: FOBStash on April 17, 2015, 12:47:14 PM

Title: RSUs question
Post by: FOBStash on April 17, 2015, 12:47:14 PM
Hello all -- I am one year employed by a software company here in the Bay Area. As part of my offer letter, I have been granted RSUs and some of them have now vested. How do you deal with them, do you just hold on it long term or do you immediately sell and re-invest somewhere else? Just for context, I have been doing index fund investing so I am very uncomfortable with individual stock equities -- not quite sure what to do with them -- I think our company is going to grow long term but I also understand markets at are a high right now and our stock has a P/E of 121. I also participate in our ESPP at a 15% discount but I immediately sell them the next day upon purchase. Lastly, hubby and I have software engineer salaries here in the Bay Area so trying not to sell any investments if possible until with RE, due to the tax hit.
Title: Re: RSUs question
Post by: The Beacon on April 17, 2015, 01:07:22 PM
You RSUs are no different any individual stocks.  You got them thru employment. Would you still invest in that stock if it were cash?  If I were you, i would sell and put the proceeds into an index fund and have sound sleep every night.
Title: Re: RSUs question
Post by: WhatIsFrugalAfterAll on April 17, 2015, 02:39:45 PM
Is it a public or private company? If a private company, there could be limitations on what you can do with the RSUs....
Title: Re: RSUs question
Post by: seattlecyclone on April 17, 2015, 02:42:31 PM
Sell the stock, diversify your investments for the long term. Be sure to pay attention to any restrictions your company places on when you trade company stock (a "trading window" for a month or two every quarter is not uncommon).
Title: Re: RSUs question
Post by: FOBStash on April 17, 2015, 04:13:53 PM
Public and yes the trading windows are well known. Thanks all.