I feel like this is a simple question, but would rather get the opinion of the hive here.
As part of my compensation package, I am able to divert some of my income to company stock, and the company matches 25%. So, if I buy 100 shares in a year, they give me 25 more shares. This is all taxable, so my income shows that I was paid the value of the 125 shares of stock (value as of purchase date, aka each individual payday).
These are not vested for a year, so I was just blindly putting in the max (who wouldn't want an immediate 25% return??? Not to mention our stock has been killing it over the past year).
I'm now coming up on the point where a bunch are vested, so I can sell them if I desire. I will be selling some of them to pay off a credit card before the end of the introductory 0% interest period (it was a mustachian decision, trust me).
But now I have to decide what to do with the rest of it. Options are, as I see them, the following:
- Sell shares ASAP and put into our IRA (not sure if we'd go TIRA or Roth in 2020)
- Sell shares and pay off our student loans, approx $10-$15k at 5.5%
- Do nothing, let them sit in my companies stock - not really comfortable with this, but this is a stable company and one that is probably "too big to fail" (actually, I know it is "too big to fail")
- Sell shares and create a cash emergency fund. Current emergency fund is only 1 month of cash, but between IRA contributions that could be withdrawn without penalty, collectibles that could be quickly sold, family help, and each of us having 2nd/3rd jobs, it isn't as bad as it sounds
If it helps with your recommendations, some background information:
- 30 years old
- Our debt includes our mortgage, a car loan at 2.75% that we are in no hurry to pay off, and the aforementioned credit card (0%, will pay it off before interest hits by selling the stock in question here) and student loans
- Including the company stock and our HSA, our total retirement savings is approximately 1.2X our income, and our savings rate is approximately 30% - it will vary between 20% and 50% depending on our side-hustles