4 ms·
It boggles my mind when people vest RSUs and just leave them there, hold onto their employers' stock and don't sell & diversify. The RSU vesting day is equivale
by AYBABTME 4y ago
It boggles my mind when people vest RSUs and just leave them there, hold onto their employers' stock and don't sell & diversify. The RSU vesting day is equivalent to having bought the stock on that day, there's no tax advantage to holding onto it. Whether at SHOP or at AMZN/MSFT/GOOG, why keep all your eggs in the same basket?
And yet the average person does exactly that.
- dehrmann 4y agohttps://en.wikipedia.org/wiki/Endowment_effect https://en.wikipedia.org/wiki/Endowment_effect
- Macha 4y agoYeah, even if I think my company will do well, having a large part of my net worth tied up in stock of my employer always feels a bit of an "eggs in one basket" scenario - if something happens to majorly impact the stock value, there's a decent change it will consequently impact my job security.
- JAlexoid 4y agoLet alone, a lot of people seem to think that they get the lower capital gains tax on the RSUs... and most companies fail miserably to educate their employees. Not to mention the horror that is the tax code in US, causing you to underpay taxes... because the company that does RSUs doesn't communicate well with your regular payroll company.
- marcins 4y agoBecause up until about 6 months ago, the 3-4 year run to that point you were better off holding. I'm sure lots of people have had a very expensive (on paper) lesson this year about how much vested stock they should hold on to (if any).