Episode 6: The RSU Millionaire: How to Build Wealth with Restricted Stock Units
Hi y’all, Stefanie coming to you solo today to talk about RSUs (Restricted Stock Units)!
I personally leveraged RSUs to build around $200k of my networth and I want to make sure you know the ins and outs of how they work WAY EARLIER than I did.
Did you also know I left over $100k UN-vested when I left my job in 2022? I’ll share how having a PLAN for your RSUs helps aid in decisions such as this + share how this could be great scenario to test out when you fill out my independence planner.
I hope this episode helps you take advantage of your RSUs… or future awards!
Today we cover:
What RSUs are
How RSUs actually work (vesting, taxes, etc)
How RSUs can be used to build wealth
Tips for how you can best manage your RSUs… aka have a plan and strategy.
How you can find Bernadette & Stef:
Follow Bernadette on Instagram at https://www.instagram.com/bernadebtjoy/
You can grab Bernadette’s FREE guide on The 10 Money Tools You Need Right Now at www.crushyourmoneygoals.com/freeguide
Follow Stefanie on Instagram at https://www.instagram.com/womenswealtheffect/
You can download Stefanie’s FREE Independence Planner to help you create clarity, control and confidence with your financial independence journey at www.womenswealtheffect.com/planner
Resources from today’s episode:
Common types of vesting schedules:
One-year cliff vesting: All of the RSUs vest at the end of the first year of employment.
Three-year cliff vesting: All of the RSUs vest at the end of the third year of employment.
Four-year cliff vesting: All of the RSUs vest at the end of the fourth year of employment.
Back-loaded vesting: A larger percentage of the RSUs vest in the later years of the vesting schedule. For example, 50% of the RSUs might vest in the fourth year and 50% of the RSUs might vest in the fifth year.
Performance-based vesting: A portion of the RSUs vests based on the employee's performance against certain goals.
Companies may also use a combination of these vesting schedules. If you have questions about RSUs or Vesting schedules email Stefanie at [email protected]
Crush Your Money Goals
I was $300,000 in debt including student loans and mortgages, living a lifestyle way above my means. Three years later my family had paid off all of it including our house! Now that I'm 100% DEBT FREE (that's right no credit cards, car payments or debt of any kind), I'm on a mission to build a community of people who are ready to crush their money goals. This isn't your regular finance show - we're here to have fun and learn about life any money together. Welcome!
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