The Moment
$10,000 in RSUs just appeared in your brokerage account. Your employer already withheld taxes at vesting (typically 22% federal + state + FICA), so the shares in your account are post-tax.
At $10,000, this is a manageable position. The concentration risk question is less urgent than with $50,000+ vestings — but the principle remains: would you buy $10,000 of this single stock today with cash?
The Decision
Sell and diversify (default recommendation): Sell the shares and invest in a diversified index fund. You eliminate single-stock risk and deploy into broad market exposure. Any gain above the vesting price is taxable — short-term if held under 1 year, long-term if over 1 year.
Hold (acceptable at this size if): - Company stock is under 5-10% of your total portfolio - You have strong conviction in the company's near-term prospects - You are close to the 1-year mark for long-term capital gains treatment (saving 7-17% in tax on any gains) - You understand that holding is a concentrated bet
The hybrid: Sell half ($5,000) and diversify. Hold the other half to see if the stock appreciates further. This balances diversification with upside participation.
Run Your Numbers
Enter your RSU details.
$10,000 Windfall Allocator
What to explore next
- →How do RSU taxes work?
- →Should I set up automatic RSU selling?
- →How much company stock is too much?
Frequently Asked Questions
If the stock is up since vesting, should I hold for long-term gains?
If you are within 2-3 months of the 1-year mark and the gain is significant ($1,000+), waiting can save $150-$350 in taxes. If you are 6+ months away, the concentration risk of holding a single stock for half a year may not be worth the tax savings. At $10,000, the decision is not critical — both approaches are reasonable.