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awesomeolion posted:About to get my first chunk of RSUs. Any tips on SELL or HOLD or OTHER? So far here are my thoughts: I hold until I can get long term gains
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Apr 29, 2022 15:44
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Are you familiar with the tax implications of RSUs? Cost basis, which parts are taxed as ordinary income vs capital gains? If you had the chunk of money instead, would you purchase and hold the company's stock?
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Apr 29, 2022 15:54
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quote:Reinvesting the money from RSUs into other stocks would be better for diversification (all income and stocks from one company is risky) leper khan posted:I hold until I can get long term gains edit: quote:I'm interested in both GAME THEORY OPTIMAL options as well as "good for a lazy idiot" options. GAME THEORY OPTIMAL as I understand it anyway (lol) is to sell heavily and rebalance on each vest: https://en.wikipedia.org/wiki/Modern_portfolio_theory you'll never have the most efficient (i.e. highest returns for your acceptable level of risk) portfolio with 100% of your money in one asset take boat fucked around with this message at 16:24 on Apr 29, 2022 |
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Apr 29, 2022 15:55
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Maybe it's bullshit but I like the framing of "if they gave you $X in cash would you choose to turn around and use it to buy company stock?" when deciding whether to keep RSU shares after they vest.
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Apr 29, 2022 16:05
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fourwood posted:Maybe it's bullshit but I like the framing of "if they gave you $X in cash would you choose to turn around and use it to buy company stock?" when deciding whether to keep RSU shares after they vest. And that answer for me is always no. Unless the stock is a rocketship LTCG treatment is meaningless as you're already taxed on vest and the vesting price is your new cost basis.
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Apr 29, 2022 16:22
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From a portfolio optimization standpoint, the worst thing you can do is to overestimate the average return of a stock. That's equivalent to being overinvested in that stock, so sell your RSUs and diversify.
ultrafilter fucked around with this message at 16:27 on Apr 29, 2022 |
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Apr 29, 2022 16:24
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It's not optimal in any way, but for peace of mind I would sell and then pay off any debt. If you don't have any debt get some by purchasing a place to live. If you already own a place outright and you're debt free then I guess playing the market is the way to go... or move.
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Apr 29, 2022 16:36
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Yeah, holding on to RSUs and not selling them is the same as picking and holding an individual stock - and the most basic rule of Investing 101 is "don't pick and hold individual stocks".
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Apr 29, 2022 16:38
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If i had that cash I would not buy my company's stock. So it sounds like sell all company stocks and buy index funds is the play. Thanks all!
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Apr 29, 2022 17:03
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tortilla_chip posted:Are you familiar with the tax implications of RSUs? Cost basis, which parts are taxed as ordinary income vs capital gains? If you had the chunk of money instead, would you purchase and hold the company's stock? I am not familiar with the tax implications. I know that my employer deducts tax from RSUs when I sell but that's about all. Does anyone build up RSUs for years and then move to a low tax state to sell? There must be some good gambits like that.
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Apr 29, 2022 17:11
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state tax arbitrage on equities specifically is not a thing, above and beyond ordinary state tax arbitrage
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Apr 29, 2022 17:12
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awesomeolion posted:I know that my employer deducts tax from RSUs when I sell but that's about all I think you mean they auto-sell some RSUs to withhold taxes when they vest, not when you sell. And FYI, the withholding on RSUs is almost certainly too low if you are a well compensated software dev in the higher tax brackets. If you're vesting a lot of RSUs (50k+) anticipate that you'll owe additional income taxes on the vesting price, regardless of when you sell. Vested RSUs count as ordinary income at the market price on the day they vest, and you owe taxes on that amount whether you sell immediately or hold on to them. Capital gains/loss are calculated from the difference between vest price and sell price. I got hosed by this one time when I vested a bunch of RSUs during a trading blackout at a high price, and the price plummeted before I was allowed to sell. So I got taxed on money I never really had. But that's the game with equity. Sometimes you win, sometimes you lose. At least I've got capital loss to carry over now. Guinness fucked around with this message at 17:29 on Apr 29, 2022 |
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Apr 29, 2022 17:22
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FMguru posted:Yeah, holding on to RSUs and not selling them is the same as picking and holding an individual stock - and the most basic rule of Investing 101 is "don't pick and hold individual stocks". Obviously. You can get a better return buying options to maximize delta.
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Apr 29, 2022 17:28
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awesomeolion posted:I am not familiar with the tax implications. I know that my employer deducts tax from RSUs when I sell but that's about all. Does anyone build up RSUs for years and then move to a low tax state to sell? There must be some good gambits like that. Then when you sell you worry about capital gains/losses based on any changes to the share price between vesting and when you sell.
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Apr 29, 2022 17:43
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Can someone explain the advantages of early exercise to me? Since we are on related topics.
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Apr 29, 2022 18:14
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you can do 83b to reduce tax sometimes
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Apr 29, 2022 18:16
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FMguru posted:Yeah, holding on to RSUs and not selling them is the same as picking and holding an individual stock - and the most basic rule of Investing 101 is "don't pick and hold individual stocks". I wonder about this sometimes. Because an employee has large amount of insider information of the health of their company, and simply deciding not to sell RSUs isn’t technically insider trading. I’ve heard of some investors who track the stock holdings of executives just to get a signal on the health of a company.
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Apr 29, 2022 18:19
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The March Hare posted:Can someone explain the advantages of early exercise to me? Since we are on related topics. It's a good way to kickstart your metabolism in the morning.
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Apr 29, 2022 18:22
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I have a dumb question. I have a bunch of vested RSUs of various ages. I've never sold any of them (I was just too lazy), but this chat has made me think I should sell them and invest diversely. I naively thought that all my stocks were equivalent, like money in a bank account... but that's not the case. I know that selling stocks <1 year old involves some tax penalty, and that selling older stocks will incur capital gains tax, so can I assume that if I go into Schwab (or whatever) to sell some stocks, that Schwab would tell me the tax penalty on a per stock basis? Like, does it say "Your stock's price today is $A. If you sell stock you vested 3 years ago, you'll get $B and have to pay $C tax on them. If you sell stock you vested 6 months ago, you'll get $D and have to pay $E tax on them." Or do I have to work all that stuff out myself? Fake edit: I went into Schwab to find this out and now I'm completely bamboozled. I want to just throw all this in the direction of a financial advisor and hide under the bed. 
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Apr 29, 2022 18:58
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choose the 'tax lot optimizer' option and be done w it, that's what it's for
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Apr 29, 2022 19:26
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Wait, is it just me, or is the reasoning on the optimizer backwards? Shouldn’t you wait to sell your short-terms so they become long-terms?
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Apr 29, 2022 22:05
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thats what it does for cap gains, yeah?
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Apr 29, 2022 22:08
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Pollyanna posted:Wait, is it just me, or is the reasoning on the optimizer backwards? Shouldn’t you wait to sell your short-terms so they become long-terms? No, the optimizer is right. You pay taxes on gains. You do not pay taxes on losses. Losses offset gains. So, you want to sell stocks that "lose money on paper" first so that you don't pay taxes now (and can offset gains you have later). Prioritize selling stocks that result in taking losses first. Stocks that are losing now may be gains next week. So, prioritize selling short-term losing stocks before selling long-term losing stocks. That way, if your losses become gains next week, you end up paying long-term capital gains on those long-term losing stocks that you held onto (and not your nominal tax rate on the short-term stocks you sold). As for gains, you know the routine: sell long-term before short-term to pay long-term capital gains tax instead of your nominal tax rate. Edit: 
hendersa fucked around with this message at 22:34 on Apr 29, 2022 |
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Apr 29, 2022 22:19
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The March Hare posted:Can someone explain the advantages of early exercise to me? Since we are on related topics. you have paid all the strike price upfront though
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Apr 29, 2022 22:36
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I am finally going full time-remote! I've been using my mac's built-in mic and webcam for the pandemic, but I figure it's time to upgrade. Does anyone have any webcam/microphone recommendations, and also maybe setup tips? (lighting, placement, etc.) - there's probably a better thread for this but I know some of you must have slick setups.
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Apr 30, 2022 17:20
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Harriet Carker posted:I am finally going full time-remote! I've been using my mac's built-in mic and webcam for the pandemic, but I figure it's time to upgrade. Does anyone have any webcam/microphone recommendations, and also maybe setup tips? (lighting, placement, etc.) - there's probably a better thread for this but I know some of you must have slick setups. This post is a couple years old so the exact product suggestions might be subpar, but the principles are sound: How to make video calls almost as good as face-to-face Also congrats on cutting your commute!
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Apr 30, 2022 17:35
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Harriet Carker posted:I am finally going full time-remote! I've been using my mac's built-in mic and webcam for the pandemic, but I figure it's time to upgrade. Does anyone have any webcam/microphone recommendations, and also maybe setup tips? (lighting, placement, etc.) - there's probably a better thread for this but I know some of you must have slick setups. You might check the Let's Play tech support thread, but really it mostly depends on how much you want to spend. You can get a fancy mic, webcam, ring light, etc. but that's not really necessary. You do want the camera to not be staring up your nostrils -- ideally it's slightly above your line of sight. For lighting, try not to be backlit. For the record, I have a Blue Snowball mic in a shock mount, and a basic Logitech webcam, and they've served me well despite being cheap as these things go.
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Apr 30, 2022 17:36
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Logitech C920 for the camera and mic. If your speakers are behind your monitor this works just fine in any sane video app with even the most rudimentary echo cancellation providing you aren't cranking the speaker volume. There is zero chance I'm wearing a headset all day to be on video calls, so having something that just works was important to me. And it really is that simple.
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Apr 30, 2022 17:42
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I have a light ring but I don't need to use it outside of winter since it's bright enough. I got a condenser mic on a swing arm to free up desk space, then since I have a massive monitor I also put the webcam on the swing arm. Works well enough.
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Apr 30, 2022 17:44
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I have a c920 for camera. The quality is good enough but having it be independent of the laptop is especially helpful for not giving the double chin nostrils boomer shot to my coworkers. I hooked up a condenser mic to a desk mounted boom arm, which I think makes a big difference being 100% remote. If I didn't already have any gear, I'd pick up a blue yeti mic and a mount if I didn't already have a lot of the other gear from recording. Ring lights help but they're not always necessary in my room since I'm facing an open window, I definitely positioned my desk so that I wasn't constantly fighting being backlit.
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Apr 30, 2022 21:13
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I use the mic that came with Guitar Hero World Tour on a swing arm and, as far as my coworkers know, I don't know what a camera even is.
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Apr 30, 2022 22:59
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I use a c920 and its mic but there's a window with diffuse light behind me so I go in and out of focus constantly if I'm not sitting in one particular position.
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May 1, 2022 00:50
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Blinkz0rz posted:I use a c920 and its mic but there's a window with diffuse light behind me so I go in and out of focus constantly if I'm not sitting in one particular position. 
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May 1, 2022 01:12
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C920 autofocus is garbo, and I wish there was an easy/obvious way to lock the focal plane. Aside from that I got a $40 LED ring light, a Shure SM-57, and a Focusrite Scarlett Solo that work great.
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May 1, 2022 01:50
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bob dobbs is dead posted:choose the 'tax lot optimizer' option and be done w it, that's what it's for do not blindly do this: it's generally agreed that RSU vesting events count as purposes for the purposes of the wash sale rule, so if your broker doesn't carry forward the loss to the next batch you gain (and I don't know of any that do? or if they're even allowed to?), you're in for either losing money or keeping track yourself and doing a bunch of annoying paperwork
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May 1, 2022 02:32
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If you have some space behind your monitor and a light-colored wall, you can just put a small lamp back there with a warm LED bulb. The light splashing off the wall will illuminate your face, and with the right setup (monitor blocking direct line-of-sight to the lamp), you don't have to look directly into a light/light ring. If you're working remote, as an oldie, you need to experiment with your setup to ensure reasonably good audio/video quality and a non-distracting/non-ghetto backdrop/background. As highly judgmental creatures, it's almost impossible to focus on what someone is saying if they look like a ghost or shadow creature or have choppy, echoey audio. If a bunch of morons on Youtube can make near-production quality video of them talking about nonsense, there's no excuse for a crappy built-in webcam that shows the drop-ceiling of your dank, radon-filled basement lair.
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May 1, 2022 02:36
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I think if I had a camera, viewers would be able to just barely see the corner of my bed, two rooms away behind me. Kinda feel like I should get some mannequin parts to put back there and see if anybody notices.
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May 1, 2022 03:51
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B-Nasty posted:If you have some space behind your monitor and a light-colored wall, you can just put a small lamp back there with a warm LED bulb. The light splashing off the wall will illuminate your face, and with the right setup (monitor blocking direct line-of-sight to the lamp), you don't have to look directly into a light/light ring. On the other hand, who cares?
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May 1, 2022 04:39
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My background on calls has been my refrigerator and part of my kitchen and I leave it that way to guilt my boss.
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May 1, 2022 04:50
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in my experience nobody gives a poo poo what your video looks like as long as your audio is decent
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May 1, 2022 05:02
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