Stage 3
RSU & Equity Compensation
Stock compensation creates concentrated positions and tax timing decisions that most content handles poorly. The default answer for RSUs is almost always: sell at vest and diversify.
These frameworks help you evaluate whether holding is actually justified — and how to handle the withholding trap, concentration risk, and multi-year vesting schedules.
Core rule: Your income and career are already tied to your employer. Holding RSUs adds a second layer of employer exposure to your portfolio. Evaluate holding as a standalone investment decision — not as loyalty or optimism.
RSUs vest as ordinary income. Holding is a new investment decision. How to evaluate it — concentration risk, tax timing, withholding traps.
The 15% discount is guaranteed return. When to sell immediately vs hold for qualifying disposition.
Incentive stock options can trigger AMT on paper gains. How to model before exercising.
After-tax comparison of selling at vest vs holding concentrated stock for various time horizons.