How To Avoid Tax Surprises and Penalties On Your RSUs and Stock Options

[@BogumilTanski]

Well, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered and I don't know where to go here out of devastation.

[@JasonsHortons]

The safest approach I feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

[@MercuriosBakers]

@@JasonsHortons I agree with you. As an early investor in NVDA, AVGO, ANSS, and LRCX, my financial advisor's advice was incredibly helpful. Over the past seven years, she has helped me find stocks that have performed 10x multiple times. With her help, I've grown my portfolio to over a million dollars.

[@BogumilTanski]

@@MercuriosBakers I’ve been down a ton, I’m only holding on so I can recoup, I need help, who is this investment adviser that guides you?

[@MercuriosBakers]

@@BogumilTanski The beauty of MARGARET MOLLI ALVEY approach is her dual focus: while aggressively pursuing profit opportunities, she's equally tenacious about shielding investors from potential pitfalls. It's a balance few can achieve.

[@BogumilTanski]

@@MercuriosBakers Thank you for this amazing tip. I just looked the name up and wrote her explaining my financial market goals.

[@ParabolicGains]

Great video, I've got a new client at a tech firm so was looking to upskill on this topic.

[@Maloha486]

Let's say I have RSUs; they vest and I don't sell right away, then the stock price goes up, does compound interest kick in or no?

[@hansangb]

There's no such thing as a compound interest for RSUs. If the prices go up, you're profit goes up, so you'll have to pay long term or short term (depending on how soon you sell it) tax on the profit.

[@LostMoney-sx4sr]

In your RSU and NQSO examples, where exactly does the $11k of tax liability get 'withheld' from??

[@JavaWealth]

Most commonly, the stock plan provider will do a "sell to cover", meaning they'll automatically sell enough shares to raise the cash and the remaining shares will go to you. So if 1,000 RSUs vest, the number that will hit your brokerage account will look closer to 600-700 shares after all the different taxes are withheld. NQSOs are usually handled the same way.

[@HarringtonWebb-l5d]

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