New to the RSU game - have started accumulating them through elevating position in company.

What do people around here generally do with them when vested? Leave them, sell them, ???

I mean... it's stock given to you. I get them... but why doesn't what anyone else with them have anything to do with what you do with them?

sockerton said:

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Rule of thumb is to sell immediately unless you have inside info that you should hold out.

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Yup. Majority of the time the best thing is to liquidate and reallocate.

sockerton said:

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Rule of thumb is to sell immediately unless you have inside info that you should hold out.

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Agree with this. A couple other options imo:
1. Hold no more than 10% of your assets in the company (so start selling once you get there with the rsus). This is only if you feel the grant price is very favorable given company's growth / dividends.
2. Read about section 83b and if your company offers that on rsus. It's not for everyone but a financial advisor may advise that strategy every other year (or even every year if you feel like the price is depressed and the growth opportunity is substantial).

This is the best point I have seen made re: RSU's (your primary income already being tied to said company). Diversify your risk unless you have a compelling reason to hold.

I treat them as a bonus. Sell immediately and either reinvest in something other than my company, or take the cash. You get the tax hit when they vest anyway so no reason not to.

Good info from all, thanks.

I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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well.... do tell, do tell

I thought we were in a good position too. Down over 50%.

I sell each year when new vesting window hits. My company is stable and is considered blue chip, however, I'm already long my job.

GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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25% of your entire portfolio in one company. Wow.

Hopefully you work for Berkshire.

If we could sell, we would on day 1 each year. We don't have that option for a few years yet and I'm uncomfortable (for the same reasons described above) holding a larger than desired position in one company.

Sell, if you can, when you can.

DRE06 said:

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GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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25% of your entire portfolio in one company. Wow.

Hopefully you work for Berkshire.

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I do not.

GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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You sound like the smartest guy in the room.

birdman said:

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GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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You sound like the smartest guy in the room.

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Hell no. I just got lucky while my company's stock has done well through the bull market.

If anything, I'm a dumbass for not diversifying. I'm trying to figure that out.

I've spent the past 15 years with a very solid growth Fortune 100 company. I would just caution that while one can feel great about how one's company is positioned, there are a couple of wildcards:

1) It's easy to get emotionally connected to where you see a slightly rosier picture than the market does - have to be careful about that
2) The biggest challenge for me is understanding how the market sees/values us. Good news may not be good enough news. Bad news may not be that bad. It depends on how effectively the market has already priced all of those assumptions into the stock, and that's always been a tough gauge for me.

And let me tell you, as an ex-Arthur Andersen manager that was there when it went down, the fortunes of your company can change on a dime. Even when it has been a historically strong market leader in existence for nearly 90 years - a leader right up until the day it wasn't. I've had a front row seat to changes that I never thought would happen, and they happened in a matter of weeks/months.

GenericAggie said:

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birdman said:

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GenericAggie said:

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I've kept mine. I have about 25% of my portfolio in my company's RSU's. I realize that's very heavy and I do need to divest, but I also believe in the company's position in the markets we sell to, such that I expect our stock to double from it's current position in the next 3 years (obviously the market will dictate to a large degree).

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You sound like the smartest guy in the room.

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Hell no. I just got lucky while my company's stock has done well through the bull market.

If anything, I'm a dumbass for not diversifying. I'm trying to figure that out.

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That was an Enron joke.

I sell my long-term holdings on the first day I'm in an open window. There has been at least one year where I wasn't able to sell, because I was in a blackout window all year.

Would the sell quickly advice apply for Apple as well? I'm going on 9 years and get RSU's every year. I also do 10% of every check for our employee stock purchase program and 7% to 401K with 100% match from Apple. Sell or hang onto the RSU's? Thanks.

JohnnyShotgun said:

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Would the sell quickly advice apply for Apple as well? I'm going on 9 years and get RSU's every year. I also do 10% of every check for our employee stock purchase program and 7% to 401K with 100% match from Apple. Sell or hang onto the RSU's? Thanks.

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How much of your net worth is tied up in Apple? I'd imagine quite a bit considering the stock appreciation over the past 9 years.

I sell as soon as the RSUs clear vesting. Depending on my cash reserves at the time, I will top that off as needed and then and immediately reallocate balance to other investments.

Been a participant for 20 years, and I always sell as soon as they vest (unless I'm temporarily restricted due to possessing material non-public information). Always. And never regretted it.

Ag13 said:

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JohnnyShotgun said:

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Would the sell quickly advice apply for Apple as well? I'm going on 9 years and get RSU's every year. I also do 10% of every check for our employee stock purchase program and 7% to 401K with 100% match from Apple. Sell or hang onto the RSU's? Thanks.

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How much of your net worth is tied up in Apple? I'd imagine quite a bit considering the stock appreciation over the past 9 years.

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My net worth is very Apple heavy for obvious reasons. I know I should diversify more, but it's hard throwing good Apple money other places. On a side note, I have recently come into some decent money from an inheritance and will be hiring someone to help manage that money. I will pick their brains for what to do with my entire portfolio.