The Moment
$50,000 in RSUs just vested. Taxes were withheld at vesting — but the withholding may be insufficient if your total compensation puts you in the 32%+ bracket. Check with your CPA.
At $50,000, this is no longer a small position. If your net worth is $250,000, this single stock now represents 20% — well above the 10% maximum most financial advisors recommend for any individual holding.
The Strategy
Default: Sell immediately and diversify. Sell all vested shares. Invest proceeds in a three-fund portfolio (US stocks, international, bonds). Any gain above the vesting price is a short-term capital gain (taxed as ordinary income) if sold within one year.
Tax-optimized selling: If you vest in multiple batches throughout the year, sell each batch as it vests. This prevents accumulation of a large concentrated position. Set up a 10b5-1 plan (automated selling schedule) if your company requires trading windows.
The 10% rule applies: Never let vested company stock exceed 10% of your net worth. If your net worth is $500,000, sell down to $50,000 maximum in company stock. As new batches vest, sell to maintain this ceiling.
Where to invest the proceeds: Taxable brokerage in low-cost index funds. Use tax-efficient fund placement: stocks in taxable (qualified dividends at 15-20%), bonds in retirement accounts (interest at ordinary rates).
Run Your Numbers
Enter your RSU value.
$50,000 Windfall Allocator
What to explore next
- →How do I set up a 10b5-1 selling plan?
- →What is the tax on selling RSUs within 1 year?
- →How do I build a diversified portfolio with RSU proceeds?
Frequently Asked Questions
My company stock has doubled — why sell now?
The question is not 'has it gone up?' but 'would I buy $50,000 of this stock today?' If you would not voluntarily concentrate $50,000 in a single stock, you should not involuntarily hold it just because your employer gave it to you. Lock in the gains, diversify, and let your unvested RSUs provide future company exposure.