Expert Contribution

When Should You Sell Your RSUs?

If stock awards are part of your regular compensation then treat them that way.

That is the theme you should follow when thinking about all that company stock you’ve been given over the years.

One example is with RSUs. When your RSUs vest, you are immediately taxed on them. That means that, from a tax point of view, the company has just given you a paycheck and you’ve decided to put all of it in your company’s stock.

Now let me ask, would you ever actually do that? I’m guessing no.

So the best strategy (at least as a starting point) is to sell your RSUs as they vest.

Now, what about all those RSUs that have built up over the years? We want to sell those in a tax-smart way, which is a bit more complicated. For more, reach out to me directly at joe@bestfinlife.com

For more details, check out a deeper analysis at www.BestFinLife.com/blog, but in this space I want to simply make the point that this can be very important.

For a limited time, I am offering a completely FREE financial conversation on the topic of your choice. FREE, that is, from cost and also FREE from any sales pitch. Simply schedule your call here: www.calendly.com/bestfinlife/free-financial-conversation.

Best Financial Life is a Registered Investment Advisor with the State of California and Joe Morgan is a fiduciary to his clients at all times.

By Joe Morgan, CFP®, CFA, Principal: Best Financial Life, Resident since 2004


About The Author

Financial Advisor
Joe Morgan, CFP®, CFA
Best Financial Life
925-389-3889

Joe Morgan is a fee-only financial advisor who acts as an educator, guide, and protector of wealth to individuals and families. He created his own firm after a successful investment career because he wanted to help people find clarity in their aspirations, resources, and risks. When he’s not showing how financial advice doesn’t have to be dictated by stuffy suited men from Wall Street, he enjoys tennis at Blackhawk Country Club and hiking the Tri-Valley area.

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