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You never want to have all your eggs in one basket, especially your current employer, but if this is not a material portion of your portfolio you can probably afford to plan and wait for best tax treatment. I've never dealt with RSUs so I don't know the details +or even the value) but LTCG rates are much lower than ST/ordinary and Amazon does not seem significantly more risky than an index fund.
If this is the majority of your portfolio you may just want to sell all or some when able to diversify.
Coach
Any way to get RSUs paid into 401k?
1) don't use past stock performance as an indicator of future performance. Countless people will tell you to hold because they made so much money by not selling. If it was that easy, we would all be Warren Buffet. Keeping tons of money in 1 stock is very very very high risk. 2) from the inside you have information advantage on long term company performance, that you should take into account before selling. 3) what to do after selling it's up to your risk appetite and time frame. I have a diversified strategy, part in funds, part in roboadvisors, part in other stocks, but it's really up to you
Coach
BH has 49% allocated to apple alone right now…
Amazon and a handful of other companies carry most of the s&p gains. Plus Amazon is very innovative and a machine so it wouldn’t be a bad idea to hold onto some
Congrats on getting hired!
Some people will sell and diversify shortly after vesting. Others may ride it out in hopes that the gains are larger than a diversified portfolio. It’s really up to your risk tolerance and the rest of your portfolio.
I don’t think there’s a single right answer here.
Thanks! Of course my strategy will be depending on a number of factors unique to me. But nice to understand how others are approaching their strategies.
what position and what is the base salary they are offering i am in the interview stages as well and this will help me understand how to look at the offer package..thank you for answering.
Non Tech Sr PM L6
$155 Base
$60 Y1 Sign On
$50 Y2 Sign On
45 RSU
When I was there starting in 2013, everyone said sell. I held every share I got and have seen 10X growth from my RSUs.
Very nice! How many RSU did you get back in 2013?
I definitely feel Amazon stock is a strong buy at the moment and since the bulk of my RSU won’t vest for another 3-4 years, I’m locked in for now and crossing my fingers. I suppose I’ll really assess my strategy in a couple years.