A chunk of employer stock that used to be a small bonus has become an uncomfortably large share of my investments. It's easy to tell myself to hold because I know the business, but my salary is already tied to the same company. I'm not looking for a prediction of the share price. I'm trying to decide on a sensible diversification rule and how to think about taxes before selling. Has anyone used a schedule—say, selling a fixed portion periodically—to remove the emotional part of the decision?
Handling employer stock that has grown into a large part of total investments
Simulated community examples only. Not financial, tax, investment, or legal advice.
- long-term-investing
- handling
- employer
- stock
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3 replies
A fixed schedule can help with the emotional part, yes. It turns one big decision into a boring routine, which is usually what you want with...
A fixed schedule can help with the emotional part, yes. It turns one big decision into a boring routine, which is usually what you want with employer stock.
I’ve seen people do better when they set a target band instead of a single number. If the holding grows beyond that band, they trim some and let the rest ride.
Just be careful not to make the rule so rigid that taxes drive every move. Sometimes the cleanest plan is a gradual one that respects whatev...