That long-awaited RSU vesting date has finally arrived. The shares are in your account, and suddenly, a significant "windfall" is sitting there.
And just as quickly, a wave of anxiety hits. What now?
This is a valuable part of your compensation, and you're terrified of making a costly mistake. Should you sell? Should you hold? What about the taxes? It's easy to get paralyzed by indecision.
The first thing to know is that you've already paid the tax. The moment your RSUs vested, their total market value was treated as ordinary income, just like your salary. Your company likely already "sold to cover" or withheld shares for this.
The real question is, what do you do with the shares that are left?
You now have a simple choice to make, and it boils down to three core strategies.
Strategy 1: Sell All, Immediately
This is exactly what it sounds like. You sell 100% of the shares the moment they are available, converting them to cash.
Pros: You have locked in your bonus and completely eliminated risk. You now have cash to pay off debt, save for a down payment, or (most importantly) diversify into investments that match your personal goals—not just the performance of one company.
Cons & Risks: The emotional hurdle here is the "Fear of Missing Out" (FOMO). What if the stock shoots up next month? This fear is real, but ask yourself this: If your company had given you this bonus in cash, would you use all of it to buy company stock today? If the answer is no, then "Sell All" is often the most logical (if not emotional) choice.
Strategy 2: Sell to Cover (The Default)
This is the default option at most companies. A portion of your vesting shares are automatically sold to cover the income taxes you owe. You are left with the remaining shares (e.g., 60-70% of the original grant).
Pros: It’s easy. You don't have to worry about a surprise tax bill.
Cons & Risks: This isn't a strategy—it's an inaction. By simply holding the remaining shares, you are making an active decision to be heavily over-concentrated. Your salary and a large part of your investment portfolio are now tied to the exact same company. If the company (or the market) hits a rough patch, your income and your net worth could both take a hit at the same time.
Strategy 3: Hold All
In this scenario, you use your own cash savings to pay the hefty tax bill (or sell the bare minimum needed) and hold 100% of the shares, hoping the price will continue to rise.
Pros: This strategy gives you the maximum possible upside. If the stock performs exceptionally well, your returns are magnified.
Cons & Risks: This is the highest-risk strategy. You are not only over-concentrated, but you are also doubling down on that concentration by pouring more of your cash in to cover the taxes. This is a significant, undiversified bet. All your financial eggs are truly in one basket.
So, What's the "Right" Answer?
The "right" choice is 100% personal. There is no single "best" answer that applies to everyone.
Your decision depends entirely on your specific financial situation.
What are your other investments?
What is your risk tolerance?
Are you saving for a house in 2 years or retirement in 20?
How much of your total net worth is already tied up in company stock?
At Resilient Wealth Planning, these are the exact, complex trade-offs we help our clients navigate every single day. An RSU grant isn't just a "bonus"—it's a critical component of your total financial picture, and it needs to be integrated into a complete strategy. You can see more on how we approach this at our
Making the wrong choice with your RSUs can cost you thousands in taxes or lost diversification. Don't guess with your financial future.
CLICK HERE to schedule a complimentary RSU strategy call with our team today, and we'll help you build a plan that's right for you.