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You can also invest the RSUs that vest or keep them. In my example I assumed you cashed them out instantly and did not invest the resulting cash. So while the c

You can also invest the RSUs that vest or keep them. In my example I assumed you cashed them out instantly and did not invest the resulting cash. So while the cash looks better with investments so do the RSUs. That also means the risk of RSUs is also not as high as you paint it out since you don't keep them for 4 years. After the 1 year cliff you can sell them as they vest. So you're only risking future money rather than money you've already gotten. Unless the stock goes below the original stock price then you're still ahead. If it does then you either get a top up or find a new job.

tharkun__ 4y ago
I see it this way: with RSUs you are betting on one egg. Your company. There are things about RSUs that make them more attractive than getting cash and betting on another single egg. If I can get cash instead I will. I don't count the RSUs as a decider in that sense. Given my risk tolerance I'll take extra cash if I can and invest it into multiple eggs instead. Over the past 10 years that probably would have made me loose out on money. We will see how it goes in the next few. When all tech stocks are tanking I bet it's going to be hard to switch to another company where things would be better. Having bought stocks that have paid dividends through many years of recessions with the cash I got seems better to me. Of course you could have sold those sweet RSUs and bought more of those same dividend paying stocks than I can. Power to you if you did. Somehow I doubt most people that choose the RSUs have done that and instead only cashed out to buy a house or a Tesla etc. Not saying that's you or everyone. I drive a 11 year old car I bought used. And would even if I had taken RSUs ;)