Should We Sell Our RSU Stocks?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Jacks88
Posts: 4
Joined: Wed Dec 05, 2018 11:45 pm

Should We Sell Our RSU Stocks?

Post by Jacks88 » Thu Dec 06, 2018 12:27 am

Hi Bogleheads!

Long time snooper and first time poster!

I am looking for advice on selling our RSU stocks..We currently have about 60k in a stock that has a dividend yeild of 2.2%

Husband is 34
I am 30yo SAHM, one child (2 years old)

We have about 100k in 401k (max 18k/year, no employer match:startup :( )
50k in ROTH IRA's (2 maxed at 11k/year)
6k in 529 ($150/month)
Fully Funded Emergency Fund
House purchase $390 (30% down) We own 44% now
No other debt

We are aggressively paying down our mortgage and should be paid off in 3 years. After the house is paid off I'd like to invest in real estate & taxable investment accounts. The 60k would pay off about 27% of our mortgage and bring us to a 2 year pay off.

I know that some people will recommend not paying off our mortgage but this will also give us extreme flexibility for my husband to pursue his passions outside of work so ultimately it makes sense for our goals.

Edits: Updated financial info
Last edited by Jacks88 on Thu Dec 06, 2018 5:21 pm, edited 1 time in total.

User avatar
mhc
Posts: 3800
Joined: Mon Apr 04, 2011 10:18 pm
Location: NoCo

Re: Should We Sell Our RSU Stocks?

Post by mhc » Thu Dec 06, 2018 10:29 am

Welcome to the forum!

Most around here recommend selling RSU shares as soon as they vest. That's what I do.

Once you have the money, then one has to decided the best use for the money. You don't list the details of your mortgage or tax situation or other debt, so it's hard to make a recommendation. If you don't use the money for paying down debt, then I would invest it in a low cost, tax efficient, well diversified manner.

megabad
Posts: 828
Joined: Fri Jun 01, 2018 4:00 pm

Re: Should We Sell Our RSU Stocks?

Post by megabad » Thu Dec 06, 2018 12:21 pm

Jacks88 wrote:
Thu Dec 06, 2018 12:27 am
Hi Bogleheads!

Long time snooper and first time poster!

I am looking for advice on selling our RSU stocks..We currently have about 60k in a stock that has a dividend yeild of 2.2%

Husband is 34
I am 30yo SAHM, one child (2 years old)

We have about 100k in 401k
50k in ROTH IRA's
6k in 529
Fully Funded Emergency Fund
House purchase $390 (30% down) We own 44% now

We are aggressively paying down our mortgage and should be paid off in 3 years. After the house is paid off I'd like to invest in real estate & taxable investment accounts. The 60k would pay off about 27% of our mortgage and bring us to a 2 year pay off.

I know that some people will recommend not paying off our mortgage but this will also give us extreme flexibility for my husband to pursue his passions outside of work so ultimately is makes sense for our goals.
I would definitely sell the RSUs. How you choose to invest them is a personal choice, but I would personally lean toward maximizing IRA and 401k contributions first if you do not already do so. Great job on paying down the mortgage! Though it is possible that investing in other manners would have resulted in a better financial outcome, there are unseen benefits that come with the peace of mind with a paid off home so I understand. You also state you would like to invest in real estate & taxable accounts. Does this mean that you have already maximized your tax advantaged space (401ks, 2x IRAs, etc)? If not, I might urge you to reap the tax benefits by doing so first before investing in taxable unless you have short term investment goals. Remember that real estate investing can be accomplished within an IRA via a great index fund like Vanguard REIT Index Fund.

User avatar
rmelvey
Posts: 764
Joined: Sat Sep 18, 2010 5:17 pm
Contact:

Re: Should We Sell Our RSU Stocks?

Post by rmelvey » Thu Dec 06, 2018 4:25 pm

I sell my RSUs are soon as they vest, treating them like a variable cash bonus. That money usually ends up in an index fund. I don't like holding too much of any one stock, especially of my employer.

Jacks88
Posts: 4
Joined: Wed Dec 05, 2018 11:45 pm

Re: Should We Sell Our RSU Stocks?

Post by Jacks88 » Thu Dec 06, 2018 5:06 pm

mhc wrote:
Thu Dec 06, 2018 10:29 am
Welcome to the forum!

Most around here recommend selling RSU shares as soon as they vest. That's what I do.

Once you have the money, then one has to decided the best use for the money. You don't list the details of your mortgage or tax situation or other debt, so it's hard to make a recommendation. If you don't use the money for paying down debt, then I would invest it in a low cost, tax efficient, well diversified manner.
Oh I am so sorry to leave that out. We have no other debt.
Our mortgage is a 30 year 3.85% and we put 30% down. The total purchase is 390 and my husband makes about 170k/year

Jacks88
Posts: 4
Joined: Wed Dec 05, 2018 11:45 pm

Re: Should We Sell Our RSU Stocks?

Post by Jacks88 » Thu Dec 06, 2018 5:11 pm

megabad wrote:
Thu Dec 06, 2018 12:21 pm
Jacks88 wrote:
Thu Dec 06, 2018 12:27 am
Hi Bogleheads!

Long time snooper and first time poster!

I am looking for advice on selling our RSU stocks..We currently have about 60k in a stock that has a dividend yeild of 2.2%

Husband is 34
I am 30yo SAHM, one child (2 years old)

We have about 100k in 401k
50k in ROTH IRA's
6k in 529
Fully Funded Emergency Fund
House purchase $390 (30% down) We own 44% now

We are aggressively paying down our mortgage and should be paid off in 3 years. After the house is paid off I'd like to invest in real estate & taxable investment accounts. The 60k would pay off about 27% of our mortgage and bring us to a 2 year pay off.

I know that some people will recommend not paying off our mortgage but this will also give us extreme flexibility for my husband to pursue his passions outside of work so ultimately is makes sense for our goals.
I would definitely sell the RSUs. How you choose to invest them is a personal choice, but I would personally lean toward maximizing IRA and 401k contributions first if you do not already do so. Great job on paying down the mortgage! Though it is possible that investing in other manners would have resulted in a better financial outcome, there are unseen benefits that come with the peace of mind with a paid off home so I understand. You also state you would like to invest in real estate & taxable accounts. Does this mean that you have already maximized your tax advantaged space (401ks, 2x IRAs, etc)? If not, I might urge you to reap the tax benefits by doing so first before investing in taxable unless you have short term investment goals. Remember that real estate investing can be accomplished within an IRA via a great index fund like Vanguard REIT Index Fund.
Yes we Max out all contributions per year. 18k in 401k and 11k total in roth. We are only contributing about $150/month towards my daughters 529 but once the house is paid off we plan on contributing about 12k/year.

Thank you so much for your comment! I really appreciate it.

Jacks88
Posts: 4
Joined: Wed Dec 05, 2018 11:45 pm

Re: Should We Sell Our RSU Stocks?

Post by Jacks88 » Thu Dec 06, 2018 5:12 pm

rmelvey wrote:
Thu Dec 06, 2018 4:25 pm
I sell my RSUs are soon as they vest, treating them like a variable cash bonus. That money usually ends up in an index fund. I don't like holding too much of any one stock, especially of my employer.
Thank you so much for your comment. We were leaning towards selling them so this was the confirmation I needed.

Thanks!

Post Reply