Question 1

How much employer stock is too much?

Accepted Answer

Most financial advisors consider more than 10-15% of net worth in a single stock (including employer stock) to be high concentration risk. Above 20% is considered High Risk — a single bad earnings report or executive scandal can dramatically reduce your net worth.

Question 2

How do I calculate my RSU concentration?

Accepted Answer

Divide the current market value of your employer stock (RSU shares × current price) by your total net worth. If you hold 1,000 shares at $150/share ($150,000) and your net worth is $600,000, your concentration is 25% — in the High Risk zone.

Question 3

What is the tax on selling RSUs?

Accepted Answer

RSUs held less than 1 year are taxed as ordinary income at your marginal federal rate (10%–37%) plus state tax. RSUs held more than 1 year qualify for long-term capital gains rates (0%, 15%, or 20% depending on income). The TaxPilot calculator estimates your after-tax proceeds.

Question 4

Should I sell RSUs immediately when they vest?

Accepted Answer

Many advisors recommend selling immediately to avoid concentration risk — you already have income tied to your employer through your salary, so holding RSUs doubles your exposure. The decision depends on your conviction in the company, tax situation, and overall concentration.