WHITE PAPER #3 | BY TYLER ANDREWS
Our quarterly White Paper is designed to share our insight behind the strategies, risks, and decisions that can shape long-term outcomes.
This paper explores how longevity can influence the long-term value of guaranteed lifetime income strategies in retirement, using scenario-based analysis to show how different assumptions can shape outcomes over time.
RSUs can be a valuable part of an employee’s compensation package. But once shares vest, they are no longer simply a future benefit. They become owned company stock—and an active part of a household’s financial plan.
White Paper #3 examines the decisions employees may face around vested RSUs, including taxes, concentration risk, liquidity needs, future vesting events, and the role company stock should play within a broader financial plan.
Why it matters
Company stock can build gradually over time. Shares vest, some remain in the account, future grants are expected, and eventually an employee may find that their income, career path, benefits, future compensation, and investment portfolio are all tied to the same employer.
What you'll learn
- How RSUs change before, at, and after vesting
- Why vested RSUs should be considered separately from unvested future compensation
- How company stock can quietly become a larger part of household net worth over time
- Why concentration risk involves more than the investment account when salary, benefits, career growth, and future equity are also tied to one employer
- How taxes can influence an RSU strategy without becoming the entire decision
- When selling immediately, holding intentionally, or gradually diversifying may each be reasonable
- The key planning question: if your employer paid you cash instead of stock, would you use that cash to buy the same company stock today?
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Our White Paper series is designed to share the insight behind the strategies, risks, and decisions that can shape long-term outcomes.
Each paper takes a focused look at an important retirement planning topic, offering added context around the ideas that often influence long-term decisions. The goal is to provide a more thoughtful, approachable way to explore concepts that are often oversimplified.
