Hey all!
I have some company stock from RSUs and purchases that has grown to about $20k.
The stock was growing steadily for a while, but it’s stabilized lately.
I have a 401k but no IRAs. Would it be worth it to sell some stock to fund an IRA?
Sell company stocks to fund IRA?
byu/t0rn4d0r3x inpersonalfinance
Posted by t0rn4d0r3x
2 Comments
Imo:
1) Selling from a non-tax-advantaged account to fund a tax-advantaged account (such as an IRA) makes good sense. You need to consider the specifics of course, but as a broad guideline, I agree.
2) Owning too much stock in your own workplace is a risky choice. Because it’s also your primary income source, a sharp downturn can both hammer your portfolio and lead to a layoff or pay cut – a double-edged sword. The main exception imo is with a startup, where you’re talking an opportunity for massive growth, and the risk may be worth it.
I don’t know if what you have now constitutes “too much”, as there’s no hard rule for it, but that’s an additional consideration that might justify selling some.
I saw a suggestion for how to handle RSUs that I think makes a lot of sense. If you had that 20k as money, would you choose to invest it in company stock? If so, keep it there, otherwise sell as soon as it vests and put it in your investment vehicle of choice.