Selling RSUs Is a Long-Term Wealth Strategy
When your RSUs vest, you face a decision that often feels more personal than financial. Selling shares from your own company can feel strange, particularly when things are going well. You may worry about missing out on future growth or question whether you are tacitly questioning the path the company is on.
These reactions are normal, and most people experience some version of them. But they rarely reflect the complete picture of how RSUs work in a long-term plan.
Why selling still allows you to benefit from future growth
When the stock performs well, you continue to benefit through future vesting. This happens automatically, without requiring additional investment or adding to an already concentrated position. By selling and diversifying the shares you hold today, you reduce your reliance on a single stock while still capturing any appreciation from upcoming vesting.
This approach helps create a more balanced financial life. Your income already depends on your employer. Your portfolio does not need to lean on the same source of risk.
How diversification protects your long-term financial picture
If the stock drops, having diversified earlier can make a meaningful difference. Concentrated positions tend to rise quickly and fall quickly. That volatility becomes even more pronounced when your compensation and your investments are tied to the same company.
Spreading your investment risk across multiple holdings may help reduce the impact of the volatility. After all, ongoing vesting still connects to your company’s success. But your overall financial well-being becomes less vulnerable to the movement of a single stock.
A steady, structured approach to selling RSUs may help convert unpredictable equity compensation into long-term financial resilience.
Key considerations before you sell
Before deciding on your vested shares, take a beat and look at the broader landscape of your financial life. Including:
- Understand your current level of concentration
Review how much employer stock you hold as a percentage of your overall portfolio. Many planners view anything above 10–15 percent as a sign that diversification may be necessary. - Look ahead to future vesting
Your upcoming vests already carry future upside. Knowing that ongoing appreciation is built into your compensation often makes it easier to diversify the shares you hold today. - Clarify your near-term liquidity needs
Major expenses — a home purchase, a transition year, supporting family — may influence how you approach selling. RSUs can be a meaningful source of flexibility. - Estimate your tax picture for the year
The standard 22 percent withholding rate on RSUs is often not enough for high earners. Reviewing your expected tax liability early can help avoid surprises. - Revisit your long-term goals
Your RSU decisions should support the life you are building, not pull you away from it. Having clarity on what you want in the next few years and the next decade helps guide the choice. - Consider creating a standing approach for future vests
Some people choose to sell a set portion of their RSUs each time they vest. This removes timing pressure and creates a consistent rhythm in their financial plan.
These questions bring structure to what often feels like a high-stakes moment. They help you see the decision not as a judgment about your company, but as one component of your overall financial strategy.
Putting your RSUs to work with intention
Selling RSUs may help strengthen your financial foundation, protect what you’re building, and create more stability in the future. You remain connected to your company’s growth through ongoing vesting, while giving yourself more flexibility and less exposure to concentrated risk.
If you want help designing an RSU strategy that aligns with your goals and the life you’re working toward, we’re here to support you.
About the Author: Bryce Baker, CFP®, is a Lead Advisor at Brighton Jones. He helps high-income professionals and families design tax-efficient investment strategies and retirement plans aligned with their values and long-term goals.
This content is for informational and educational purposes only and should not be construed as individualized advice. For individualized advice tailored to your specific circumstances, please consult with your adviser.
