Restricted stock

So employees owe ordinary income tax based on the value of the stock or a plans to withhold some of the shares and use cash to send the associated taxes to the government.

That's what they call the RSU net settlement that they mentioned throughout the filing.

So they are literally earmarking part of the IPO proceeds for this.

The exact dollar amount and assumed withholding rates are still blank in the draft S-1.

So RSU 201, your RSU is just vested, taxes are handled, and shares are now sitting in your account.

Most folks ask, now what? And this is the moment most people get wrong.

So quick recap from RSU 101, vesting is taxable, ordinary income, that is handled.

Maybe single income, maybe high fixed expenses, you already mentioned that.

Variable compensation, if you're using up a lot of your bonus income or RSU income to fund your lifestyle, that's going to drive a higher number.

And the interesting thing about this, people think it's a waste to have this money in cash, but the reality is it actually is what allows you to have the money invested.

Because if you didn't have a bunch of cash, you'd have to have different types of investing lower conservative investing type of accounts to offset the fact that you might actually need this money or you have this big risk of having to draw.

Because when are you going to lose your job? When the economy is doing really well or when the economy is doing really poorly? When are you going to have a reduction in commission income? When the economy is doing really well or when it's doing poorly? When is your RSU value is going to be crappy? And so it's like, All of these things, if they're going to hit, they're going to hit when things aren't going well anyway.

And so you want to have this protection.

The other thing is that having a big cash reserve allows other things.

So you can't put money in your 401k when you're on disability.

And so that's a major change just right off the bat.

And then to your point, well, if we're 55, where are we getting that 4% from? Is it coming from qualified retirement plans? If so, how are we avoiding the 10% early distribution penalty? Is it coming from non-retirement brokerage sources? How are we minimizing investment income, dividends, capital gains taxes? And then how does it merge with any kind of fallover benefits that you have from employment? Do you have deferred compensation? Do you have an RSU schedule over the next seven years that's going to vest and produce income? And all of that will also, you know, tie into and connect to your Affordable Care Act policy and what's your adjusted gross income and what is your health insurance premium? And so all of these things kind of play a role, but it starts with what's my sustainable withdrawal rate? Am I even within the realm of possibility of making this work? And then how do I kind of address where I'm taking it from and avoiding any sort of tax penalties associated with it?

Yeah.

I think it's important that we take a step back and remember what the balance sheet for the person retiring from the super major oil and gas companies like because they're overweight retirement assets, you know, from the pension, IRA accumulation or 401k with the generous match.

So what were a couple of these inflection points in your own thinking about building generational wealth that happened to you in your corporate trajectory?

Yeah, so there were a couple of times in my career where I worked for these hot startups I mentioned, where I had a really, really good stock package, RSU package.

And the first one was at Fisker Automotive back in 2010, 2011 timeframe.

I had 120,000 shares of Fisker.

So that was the first one.

I went to Hyundai at the time and then got the stability I was looking for.

But then that bug in me about the IPO and RSUs and I'd missed the boat on Tesla.

I had many opportunities to go to Tesla, as you alluded to earlier.

We can help you think through college savings.

We can help you think through an RSU equity vest you just got.

You know, many RSUs, they have a window within which you have to decide to execute and we can help you think through that.

We can help you think through the tax implications of anything that you're facing in your life.

And so whatever you want to talk about or address, we're there for you.

Yeah, we've had a number of price targets on TerraWolf, and this seems to fall into that range.

Patrick talked about his recent RSU shares he received as part of his performance package there.

And instead of using some of those shares to pay the tax bill, he went out and paid the tax bill with his own money, suggesting that he believes the share price could go significantly higher.

And why waste selling shares when you think that the share price is expected to rise? And William Blair have come out with a price target of $31.