The Mind Money Spectrum Podcast

#34. How do RSUs work?

August 04, 2020 Aaron Agte and Trishul Patel Season 1 Episode 34
The Mind Money Spectrum Podcast
#34. How do RSUs work?
Chapters
The Mind Money Spectrum Podcast
#34. How do RSUs work?
Aug 04, 2020 Season 1 Episode 34
Aaron Agte and Trishul Patel

In this episode, Aaron and Trishul discuss Restricted Stock Units. In addition to stock options, RSUs are the other common form of equity compensation. They explain how Restricted Stock Units can work like a bonus paid by stock instead of cash. They go in-depth on vesting schedules and the difference between publicly traded companies and private (pre-IPO) companies. They then compare RSUs to options to help you understand the risks and taxes associated with each. So if your salary is providing for your lifestyle, how can you use this "extra" money to improve your well-being?

Episode References

Graystone Advisor - How do RSUs work?
Graystone Advisor - When do I Exercise my Incentive Stock Options?
MMS #33. If you have Incentive Stock Options, you need to listen to this episode.
MMS #2. Buying stocks can be fun, but don't fall into these common traps.
Stock Options 101: ISO vs. NQSO vs. Restricted Stock Units
Home Country Bias
Investing Forever - Passive Is the New Aggressive
IRS Code Section 409A

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Show Notes

In this episode, Aaron and Trishul discuss Restricted Stock Units. In addition to stock options, RSUs are the other common form of equity compensation. They explain how Restricted Stock Units can work like a bonus paid by stock instead of cash. They go in-depth on vesting schedules and the difference between publicly traded companies and private (pre-IPO) companies. They then compare RSUs to options to help you understand the risks and taxes associated with each. So if your salary is providing for your lifestyle, how can you use this "extra" money to improve your well-being?

Episode References

Graystone Advisor - How do RSUs work?
Graystone Advisor - When do I Exercise my Incentive Stock Options?
MMS #33. If you have Incentive Stock Options, you need to listen to this episode.
MMS #2. Buying stocks can be fun, but don't fall into these common traps.
Stock Options 101: ISO vs. NQSO vs. Restricted Stock Units
Home Country Bias
Investing Forever - Passive Is the New Aggressive
IRS Code Section 409A

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.