Sell your RSUs immediately upon vesting

You should almost definitely sell all your RSUs immediately when they vest.

If you don’t believe me, imagine that the company gave you cash instead of RSUs. Would you use that cash to buy stock in your company? Because that’s what you’re doing by hanging onto those RSUs.

Holding your vested RSUs is precisely the same as taking your bi-weekly paycheck (i.e. your salary) and using 100% of it to buy your company’s stock.


If you still don’t believe me, it may be because you think (like I did until recently) that you’ll avoid taxes by holding the shares for at least a year. Wrong. That only applies to capital gain income, and you’ll have exactly zero capital gain if you sell it immediately. There is no tax benefit to holding vested RSUs at all.

If you still don’t believe me, read this or this or this or this or this or this or this or literally any Google result for “when should I sell my RSUs?”

I didn’t understand that until recently, so this is me trying to save someone else before it’s too late.

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