Should I sell my RSUs as soon as they vest or hold them?
From a pure tax standpoint, selling immediately at vesting is usually the cleanest choice because you already paid ordinary income tax on the full value, so there's little to no additional gain to tax. Holding only makes sense if you have genuine conviction the stock will outperform a diversified index – and you can stomach the downside. The key reframe: would you take that vested cash and voluntarily buy more of your employer's single stock? If not, sell and diversify. Many people irrationally hold simply because selling feels like a loss. If you do hold, waiting more than a year gets long-term capital gains rates on future appreciation. Compare the concentration risk against the modest tax benefit; for most, diversifying wins.
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