I prefer to avoid concentrating my income and wealth with my employer and diversify. The double whammy of the stock going down and the risk to my job is something I can't stomach.
That's a great topic! I think what's you're doing is perfectly rational. I sell 80% every vesting cycle to minimize my regret :-) on aggregate it worked well for me the last 10 years as fb/Google (my two employers) outperform the market substantially, but it also means that I have huge exposure to tech... So net net probably just better to do what you do and autoinvest it
What about your ESPP stock? Looking at your graph you actually zero out so I'm assuming you sell ESPP stick also. Wouldn't it be better to hold it until you can have a Qualified Disposition?
No ESPP at Facebook. My wife has one and it does complicate things a little bit with how they vest and avoiding wash sales. Without the wash sales worry would sell and take the free 15%.
Well, my tho't process is simple. Most big tech companies are going to grow in-tandem or possibly more than the indices anyway. (Because most of the indices are made up of them.) So why sell and pay STCG when you could as well match/beat the growth rate and pay a lower LTCG later.
That's how I do it too!
I prefer to avoid concentrating my income and wealth with my employer and diversify. The double whammy of the stock going down and the risk to my job is something I can't stomach.
That's a great topic! I think what's you're doing is perfectly rational. I sell 80% every vesting cycle to minimize my regret :-) on aggregate it worked well for me the last 10 years as fb/Google (my two employers) outperform the market substantially, but it also means that I have huge exposure to tech... So net net probably just better to do what you do and autoinvest it
What about your ESPP stock? Looking at your graph you actually zero out so I'm assuming you sell ESPP stick also. Wouldn't it be better to hold it until you can have a Qualified Disposition?
No ESPP at Facebook. My wife has one and it does complicate things a little bit with how they vest and avoiding wash sales. Without the wash sales worry would sell and take the free 15%.
Well, my tho't process is simple. Most big tech companies are going to grow in-tandem or possibly more than the indices anyway. (Because most of the indices are made up of them.) So why sell and pay STCG when you could as well match/beat the growth rate and pay a lower LTCG later.
I want to reiterate that there are zero stcg if you sell at vest for RSUs.
Yes that's clear. I'm referring to ESPP.
Ahh just wanted to make sure! I’m generally a fan of the guaranteed return. Sure wish I listened to my own advice with my wife’s Uber espp though.