Equity & RSU Vesting

Navigating the complexity of stock grants, cliffs, and market growth assumptions.

Why Equity Matters

For many tech professionals, company equity (RSUs, Options) is the single largest component of their net worth. However, it's also the most volatile. Understanding your **vesting schedule** and **concentration risk** is critical for long-term financial independence.

Key Terms Explained

  • RSU (Restricted Stock Unit): A promise to give you shares of company stock in the future if certain conditions (usually staying employed) are met.
  • Vesting Schedule: The timeline over which you earn your shares. A common schedule is "4-year vesting with a 1-year cliff."
  • The Cliff: A period (usually the first year) where zero shares vest. Once you "hit the cliff," a large chunk (typically 25%) vests at once.

The Upside

If your company stock grows at 10% annually, your total package value expands exponentially beyond the original grant value.

Concentration Risk

If 80% of your wealth is in one stock (your employer), you are vulnerable to "double jeopardy"—losing your job and your savings simultaneously during a downturn.

Model Your Future

Should you sell your RSUs as they vest or hold for long-term growth? StressTest.pro's **Equity Simulator** allows you to input your grant details and visualize your projected net worth after taxes, helping you make data-driven diversification decisions.

Project Your RSU Wealth

Equity Intelligence

Don't guess your future value. Calculate your vesting tranches and project growth outcomes today.

Run Equity Simulation