Gen One Legacy

Navigating the Maze of Restricted Stock

Peter Donisanu

Decisions, decisions, decisions. That's mantra, for better or worse, that defines the life of every tech professional navigating the complex labyrinth that is the world of restricted stock (RSUs).

Picture this - you're sitting at your laptop, sipping your morning coffee, and you receive a notification that your company's stock has vested.

That's good news, right?

After all, this stock forms a significant part of your overall compensation and holds the power to substantially change your financial well-being. But then, an all too familiar sensation starts creeping in, and that's that overwhelming sense of being burdened with yet another complex decision to make.

Why does it feel this way? Well, you might feel unsure of what to do when faced with the dilemma of managing your RSUs because you might feel like you have a veritable treasure in your hands, but the fear of making the wrong move may stop you dead in your tracks.

And it's understandable. Why would you want to rush into making any decision when there's so much at stake? The problem, however, arises when you fall prey to the illusion of ignorance being bliss. Certainly, turning a blind eye to your vested stocks might feel comfortable for the time being, but this comfort could cost you more than you think.

Just imagine. One day you're hit with a huge tax bill, blindsided by unforeseen risks, or worse yet, facing the loss of a golden financial opportunity. Isn't it chilling to even think about these possibilities? Now, it's in these moments that you realize the importance of making conscious, well-thought-out decisions about your RSUs.

So now, you might be scratching your head, asking yourself: "What in the world am I supposed to do to overcome this analysis paralysis?" Is there a way out of this seemingly endless maze of decision-making?

Fortunately, the answer is simpler than you think. Consider this: when trying to get out of a maze, it's all about taking one step at a time, right? Well, the same goes for managing your equity award, and that's why you should focus on making three critical choices as we approach the midpoint of the year.

Visit us at https://fimastery.com to learn more about the FI|Mastery Journey.

Be sure to follow us on Twitter: @fimastery and Instagram: fimastery