Restricted Stock Units: The Basics of RSUs and How to Use Them

[@mpat146]

This is an excellent summary (as a CPA who has lots of clients with stock based compensation). I also use James's question about whether they would buy the stock if they were getting a cash bonus. Of course, the answer is always no. But, most people still keep the stock from my experience.

[@andre-l3j]

This was very helpful, James. Thanks!

[@peterwright837]

Wish I had heard this 15 years ago. We held on to most of the vested RSU’s plus ESPP shares purchased at a discount. Fortunately the return has been great, but now when we’re retiring about 45% of our net worth is in one stock with cost basis of 10%. I know we need to diversify quickly, but the capital gains taxes are painful. Maybe you could do a video on how to handle this situation.

[@pilauopala843]

Great advice on the wash sale rules!

[@FatherGapon-gw6yo]

Sell the instant they vest. Learned the hard way at a company whose stock halved and then went private.

[@vinu2379]

Excellent video

[@davidcelliott]

My company recently changed to sell to cover, and it's done over 5 days. You get 20% each day, and they sell an amount to pay SS, Medicare, and taxes each day. Luckily for me, the market was increasing during that time so it worked out as a plus due to the shares selling for more almost every day.

[@CharlotteCarMoments]

Great video!

[@donschmitz3972]

I have a similar question that I don't think is as straightforward: I'm about a year out from retiring, looking at a fairly high marginal tax rate. I've got a fair chunk of company RSUs that have done well enough in the last few years that I hesitated selling them. I'd really like to sell some shares to diversify, but I'm wondering if waiting till I'm collecting SS (with total SS + savings-draw down roughly the same as my current take home pay) will change the tax hit and make the risk of holding another year worth taking.

[@yisun1725]

However, if you were to sell it after you got the vested RSU, which the ordinary income tax is already deducted by the way. You still have to pay more taxes when you actually sell the stock. This is what my cpa told me, so I would not question that. Plus, there are some subsidiary docs in my E*trade account about the adjusted tax needed to pay if I were to sell the stock. Is selling the stock immediately after kit got vested considered capital gains? Cause it shows sell short on my E*trade account.