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

Ready For Retirement

ames responds to a question from Chris regarding restricted stock units (RSUs) and how to avoid costly mistakes when managing them. He explores whether it’s wise to hold onto company stock or diversify for a safer financial future. He breaks down how RSUs work, from vesting schedules to the tax implications of receiving stock as part of your compensation package. He also explains the critical considerations you should make when deciding whether to hold or sell vested shares and how this decision fits into your broader investment strategy.
Questions answered:
Should I hold onto or sell my vested RSUs?
What are the tax implications of RSUs, and how can I avoid mistakes?
Submit your request to join James:
On the Ready For Retirement podcast: Apply Here
On a Retirement Makeover episode: Apply Here
Timestamps:
0:00 - How RSUs work
4:24 - Like a cash bonus
7:17 - Question your performance assumptions
12:25 - How RSUs are taxed and paid
15:14 - Default withholding rate and wash sale rules

Create Your Custom Strategy ⬇️

Get Started Here.

فصل ها

1. Understanding Restricted Stock Units (00:00:00)

2. Investment Strategy vs Performance Chasing (00:08:29)

3. Tax Implications and Strategies for RSUs (00:13:09)