Re:Not Saying Winter Is Coming, but Where’s Your Coat?
by muzz on Thursday August 04, 2016 @04:37PM
(#12228282)
> When my RSUs at Google vested they would automatically sell some to pay my tax obligation, but I would instruct them to sell half as well. Same philosophy. Get some of the money diversified, keep a bit of skin in the game in case it had a gain.
There is no difference (except for a few bucks in broker transaction costs) between doing this and selling ALL of your RSUs as they vest ie "auto-sale" and buying Google shares on the open market.
Although the latter emphasizes the decision you are making to concentrate on a single issue rather than diversify.
Often times I have "sold to cover" which is to say exercised the option, and immediately sold enough of the stock to cover the cost of exercising the option and paying the tax. At that point you have shares in your company in your brokerage account where the "basis" is the fair market price when you exercised them. A year and a day later (to convert to long term gains) I've sold half the shares.
When my RSUs at Google vested they would automatically sell some to pay my tax obligation, but I would instruct them to sell half as well. Same philosophy. Get some of the money diversified, keep a bit of skin in the game in case it had a gain.