A huge tax mistake you could make with your RSUs

It's also common for some of the stock to be surrendered immediately to pay the tax bill when the stock vests, but the point is: you're taxed on that shiz like it's ca$h money income anyway, so you may as well do what you want with it (whether that's hold or sell to diversify).

👉🏼 Sidebar: While it's certainly possible to outperform the market with your company stock, I’m not a big fan of holding a large portion of your portfolio in individual stocks in general.

A 2021 JPMorgan study examining the "loss probability" of individual stocks found that 66% of stocks in the Russell 3000 trailed the index as a whole between 1980 and 2020 (which is a fancy way of saying, 6 in 10 individual stocks that made up the index actually underperformed the *average* of the 10 overall).

🪙 All that to say: You have worse than a coin flip’s chance at working for a company with a stock that beats the index *over the long run.*

As always, consult your tax pro before making any ~big moves~! this week's episode of The Money with Katie Show dives deeper.

Presented by TaxAct
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[thepotbellyninja]

"at the time of vesting" . . . ."granting" and "vesting" are 2 different things . . . you need to clarify . . .

[Maloha]

Let's say I have RSUs; they vest and I don't sell right away; then the stock price goes up. Does compound interest kick in or no?

[hondaryder]

Wearing your curtains saves a lot of money.