4 ms·
Even the $300k numbers here are 50%+ equity. That's a considerable risk. It worked over the past 10 years because tech stocks have outperformed everything else.
by dx034 9y ago
Even the $300k numbers here are 50%+ equity. That's a considerable risk. It worked over the past 10 years because tech stocks have outperformed everything else. If we see a true tech stock crash (50%+ correction), many of those $300k salaries are in reality closer to $200k (or less if you'll never be able to sell the stocks). I don't wish that to anyone but it's important to keep in mind that stock bonus is something very different from cash salary.
- Redoubts 9y agoMaybe it's because I'm making multiples of what my father ever did, but this is why I'm diversifying my stock immediately on receipt and saving +50% of my income. Anything else seems like insanity, or at least profligacy.
- ryandrake 9y agoThe way I’ve always explained it: if you suddenly got $50k, would you put it all into one stock? No. So if you suddenly got $50k of one stock, why would you not turn it into cash right away? The scenarios are identical. EDIT: as 0xB31B1B points out it’s worth clarifying that the scenarios are the same only when we are talking about post-tax numbers. Generally when you receive RSUs, the taxes have already been withheld.
- 0xB31B1B 9y agoNo, there is a taxable event in the case of a stock sale