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If you have other capital gains, then its less of a gamble because then you can use the loss if it goes sideways to offset your other gains. But for the vast va
by namelessoracle 5y ago
If you have other capital gains, then its less of a gamble because then you can use the loss if it goes sideways to offset your other gains. But for the vast vast majority who get RSU's yes its not preferred.
- sanderjd 5y agoRSUs are taxed as income at the time they vest. If you were given the exact same amount as a cash and then used that cash to buy that exact same amount of stock, then the tax treatment would be identical. Of course nobody would actually do that with the cash, because most other things (like buying an index fund or stock in one or more competitor companies) would be a smarter thing to do with it.
- InitialLastName 5y ago> stock in one or more competitor companies Be careful with this... if we're talking about diversifying your risk, there's a good chance that the stock values of your employer and of its competition in the same industry are positively correlated modulo some market events. Better to buy stock that is likely to be independent of the industry that derives your primary salary.
- sanderjd 5y agoSure. I'm just speaking hypothetically. It might have been better to say "uncorrelated" rather than "competitors".