Equity Compensation
RSU taxation, withholding elections, concentration risk, and how to think about tech-industry equity comp alongside the rest of your financial picture.
9 guides in this topic
Strategy17 min readCalculator
One Employer, Four Exposures: Salary, Unvested Equity, Vested Stock, and Your Home
Four household exposures can move with one employer: salary, unvested grants, vested stock, and a mortgaged home. Only one of the four has a market price.
Strategy16 min readCalculator
Your Company Stock Has to Beat the Market by 3 Points a Year to Be Worth Holding
On a low-basis $1M position, deferring tax is worth about 1.2 points a year while the added volatility costs 4.1. That gap is what your stock must beat.
Strategy14 min readCalculator
Cash vs Equity Election: When Your Employer Lets You Convert Future Awards
Some employers let you swap future equity for fixed cash on the same vesting schedule. That is a forward sale of single-employer risk. With a decision tool.
Strategy7 min read
Sell Your RSUs at Vest: The Cash-Bonus Test for Tech Workers
When RSUs vest, the rational default is sell-all and diversify. Sell-to-cover and deposit-cash leave you holding a concentration bet. The cash-bonus test.
Strategy15 min read
Why My Paycheck Is Intentionally Too Small: The RSU Bridge Strategy for Max-Saver Tech Workers
I intentionally starve my paycheck to max 401k + MBDR + HSA, then bridge spending with a short-term reserve and quarterly RSU vest proceeds. Here's the system and a calculator to size the bridge.
Strategy22 min readCalculator
RSU Withholding Calculator: What Federal Rate Should You Choose at Each Vest?
The 22% withheld at your RSU vest is not your tax rate. Solve for the federal rate you need from YTD withholding, remaining vests, and the IRS safe harbor.
Strategy16 min read
Your Portfolio Is Not Just Your Brokerage Account: Human Capital Risk for Tech Workers
RSU-heavy tech workers are already concentrated in U.S. mega-cap growth before buying a single ETF. Here is why the standard index fund portfolio has gaps, and what to do about it.
Strategy14 min read
Concentration Risk: When to Sell Your Company Stock and How to Diversify
Single-stock concentration increases volatility without increasing expected returns. Learn how to measure concentration with HHI, run the sell-vs-hold math, and use multi-year projections to build a diversification plan.
Strategy12 min readCalculator
RSU Tax Strategy: What Engineers Get Wrong About Equity Compensation
RSU vests are taxable income that can push you into a higher bracket. Learn the sell-vs-hold framework, how to use tax-loss harvesting when diversifying, and the common mistakes engineers make with equity comp.
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