How are you handling your ESPP/RSUs when the stock is absolutely tearing it up?
Hey everyone,
Looking for some perspective on managing company equity. I’m incredibly fortunate that my company stock has been crushing it lately, but it’s introducing a ton of concentration risk.
I used to just ignore my unvested stock until it actually hit my account then sort of market time. But because of this recent run, the value of my unvested shares has become auite large I can't ignore it anymore, it is kind of life changing money and I'm trying to figure out a diversification strategy for stuff vesting over the next ~3 years.
At the same time, I’m trying not to count my chickens before they hatch. It’s just paper money until it vests, and a lot can change in 24 months. For those who get RSUs and do an ESPP, how do you handle it?
- Do you sell immediately on vest/purchase? Even if the stock is on a massive run and you feel like you'll miss out?
-How do you account for unvested shares? Do you factor unvested value into your asset allocation, or do you strictly look at what is already liquid?
-Tax strategies: Are you waiting for qualifying dispositions on the ESPP side or just ripping the band-aid off?
I am trying to protect from a sudden downturn before things even vest. How do you guys handle the math vs the psychology of this?