Newsletter
Welcome to the 6th edition of the Tech Financial Planning (TFP) Newsletter.
I was talking with someone on Linkedin and they were asking about getting RSUs at a private company.
How the heck does that work exactly?
Hello double-trigger RSUs
In this newsletter we will go over what double-trigger RSUs are, how they differ from “traditional” RSUs, and some important considerations.
So you just had some RSUs vest.
Should you sell and diversify or hold onto the stock (diamond hands - to the moon!)?
Enter the great financial planning mantra of “It depends.”
In this article we will go over some important considerations for your RSUs, some reasons you might diversify, and some reasons you might hold.
I had the chance to interview a friend who’s been in the tech industry for almost 10 years. He started with a couple smaller companies and then got hired by Uber, where he was with them through their IPO. From there, he joined a startup which ultimately didn’t work out, and now is at Netflix.
We chatted through his experience navigating the equity compensation world, particularly RSUs, and the learning lessons he gained along the way. As you will see, it can build great wealth, but it doesn't come with instructions.
Here are 7 of his top lessons from his time in tech so far.
Welcome to the 1st edition of the Tech Financial Planning Newsletter.
In this newsletter, we will talk about what happens when they vest, the taxes associated, and what decisions you need to make.
TL;DR
In general, when RSUs vest, you gain full rights and ownership
When RSUs vest, you will owe taxes
Your company will withhold taxes, but depending on your situation, you might still owe taxes at the end of the year
To cover the tax withholding, you may consider a net, cash, or cashless exercise
After they vest, you need to decide whether to hold on or sell them
Restricted Stock Units (RSU) are a form of compensation granted by a company to its employees. In general, when your RSUs vest, you acquire full rights and ownership to the value of the units. Typically, this is transferred to you in the form of your company’s stock.
RSUs can be a great part of your compensation, but it’s important to understand their impacts on your financial plan.
