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Hodl til the end of time and diversify elsewhere. It's a gamble, but if you sold TSLA or FB stocks right after they vested, you'd be kicking yourself now.
When is this hypothetical vest? If you got them at the end of 2021 or Q1 this year you'd be up compared to today.
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That’s not true if you’re getting the RSU at a discounted stare price. Waiting changes it from income tax to capital gains tax.
I do not follow and would love a link for my education. Nearly all the RSU cases I’ve always seen are super simple: on date X, a given amount of shares will be given to you via vesting. You take whatever those shares are worth on that day, and pay regular tax. If you decide to hold past the vesting day, you’ll be subject to additional tax liability if the share price increases, but this additional liability will be $…
Sorry for the confusion.
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Fair, but this doesn’t take into consideration the biggest financial impact for these income levels - taxes.
What tax implications would impact here? RSUs get taxed as income when they vest.
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I do not follow and would love a link for my education. Nearly all the RSU cases I’ve always seen are super simple: on date X, a given amount of shares will be given to you via vesting. You take whatever those shares are worth on that day, and pay regular tax. If you decide to hold past the vesting day, you’ll be subject to additional tax liability if the share price increases, but this additional liability will be $…
I think I’m confusing RSUs and ESPP shares. The latter I’ve gotten discounted by 15% of the market price. If I sell them immediately, the 15% gain is taxable as income tax. If I hold them for a time (a year?), then sell, tax on gains are paid as cap gains not income tax. Of course the gain/loss at that time is anyone’s guess. Sorry for the confusion.
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What tax implications would impact here? RSUs get taxed as income when they vest.
It’s crazy how many people are still under the impression that holding newly vested RSUs can result in some sort of tax advantage. I work at a FAANG and, despite the massive amount of internal docs on the topic, incredibly smart engineers routinely mention taxes as a reason for not selling newly vested shares.
ignoring blackout volatility, since of course our grants didnt line up with windows, pretending it was cash and would you purchase stock on a cash bonus really is the best way to think about it