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Sell it all as soon as you possibly can. I've worked for public companies that went from $80/share to $2/share (Sun Microsystems) and from $24 to $4 (Groupon)
by alasdair_ 9y ago
Sell it all as soon as you possibly can.
I've worked for public companies that went from $80/share to $2/share (Sun Microsystems) and from $24 to $4 (Groupon) and in both cases, I knew a LOT of people that just held on, thinking the decline was temporary.
In fact, if it's a regular monthly or quarterly vest, look into setting up a 10b5-1 plan to automatically sell your shares even during blackout periods. The broker handling the shares for you will often do this for free.
- delecti 9y agoThe brokerages I've received my RSUs through all give tax election option. I can elect to a) pay money ahead of time and keep 100% of my RSUs, b) sell to cover, where I keep ~70% of each grant and the rest goes towards taxes, or c) sell all immediately, regardless of blackout periods (though I can only change my selection during trading windows). I had to pick one of them, so I think describing it as "setting up a 10b5-1 plan" might be inflating the difficulty of the process somewhat, even if that might be what I was unknowingly doing at the time.