RSU Calculator: Key Insights

The Primary Goal

The tool projects how your wealth could grow over 5 and 10 years by comparing two distinct RSU management strategies:

• Passive ("Do Nothing"): Letting your RSUs accumulate as they vest.

• Active ("Sell & Reinvest"): Selling RSUs immediately upon vesting and reinvesting the proceeds into a broad market index.

The Core Trade-Off

• Concentration: Potential for higher returns if your company stock outperforms.

• Diversification: Reducing risk by spreading wealth across the broader market.

How the Inputs Work

• Stock Data: Enter your company's TICKER to pull the current price and historical performance.

• Projected Returns: The system suggests returns based on 10-year company medians and 40-year S&P 500 medians (both are fully customizable).

• Tax Efficiency: By providing retirement and savings info, the tool offers tailored advice on improving your tax position. Note in the general versions of both the simple and full calculators, tax savings via tax-advantaged accounts does not contribute to the net wealth results. However we will soon release company-specific versions for the Magnificent 7 which incorporate 401(k) retirement specifics. These versions will allow employees to input retirement savings information below and see the projected results of investing in tax-efficient vehicles.

Simple vs. Full Version

• Simple Version: Analyzes one RSU package and provides basic tax efficiency tips.

• Full Version: Supports multiple RSU packages for a more comprehensive financial picture.

• Note: While the calculator uses historical data as a baseline, remember that past performance is not a guarantee of future results.