Sold my first shares of sharing success award in 2025 should I expect a 1099B form?
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@jc+1kgnjc82s - this assumes one spent and did not invest the cash. I always sell this dog the moment it vests to diversify as my primary income stream is already tied up here.
@hd+1kgnjc82s - you have been fortunate. this is how it is supposed to work, but guess you weren't here for the 53s back in the early 2000s that the rest of us had to ride down to $3.85.
Yup -- you read that right. Three dollars and f-in 85 cents.
The air is pretty thin for this dog in the mid 50s, so no thank you. Sell, Sell. Sell.
Heck, put in some shorts! This has nowhere to go but down.
The squeeze is no longer worth the juice at these levels.
But hey, if you have a 25 year horizon to recover, then go for it.
@qv A 20% withholding tax may apply at the time of withdrawal
I'm not a fan keeping a lot of money in a single stock so I sell > move money to Roth IRA > Buy VOO. This is in addition to maxing out Roth 401k. On track to retire at 55. (Will use rule of 55 in 401k)
Fair points, but there are additional things at play to consider. First is the time value of money. As an old saying goes "a fast nickel beats a slow dime". Secondly, speaking of the this current cycle, the award is supposed to be sharing the success the company had...in 2025. To make all employees wait until 2029 to be fully compensated for their efforts in contributing to the bank's 2025 success is just wrong. For the top 5% of the house, the most senior of executives, fine. You want them making sound long-term decisions. So stock compensation that vests over time makes sense. But for lower-level employees who are not making strategic decisions that affect the direction of the company? Give them (a proper amount of) cash. If these stock awards are such a good thing for employees, it wouldn't be good for the bank, and they wouldn't be doing it. They do it because they know they will never have to actually pay out a huge chunk of that value they announce to the press they are giving out.
@jc Probably because you get the cash immediately and can invest it however you'd like instead of waiting a year just for 25% to vest and it being held in BAC stock during that time.
Personally I like the RSU shares - they get people (hopefully) to invest the money rather than spend it, and, like you explained, they turn into a nest egg over time.
@j8+1kgnjc82s I'm not that guy you tagged I'm another guy but:
BAC stock has basically performed the same as SPY, ignoring yield. Counting yield, BAC has outperformed. No, cash is worse... Much much worse.
The 5 k per year I've received over 5 years has turned into nearly 50k (nearly because it wasn't all given at 25 a share, I'm at around 42 k or something like that). I'll take 42k over 25k any day. But I'll also reap some divvies while holding the stock.
Don't y'all work for a bank, how do you people think cash is so great lol
Wouldn't a $5k cash bonus (which isn't much and a drop in the ocean for the bank) each of those years been a lot better?
This is a random bonus of money. If you're relying on this, this is a massive mistake. It isnt guaranteed at all. So your point is invalid. You didn't rely on this money 7 years ago, and it isn't promised within any employment offer.
To the rest of you cash is king folks, take this as a learning opportunity -- here's your sign to stop with the convert to cash and buy a new PlayStation. Keep as stock and prepare for the economic storm instead.
I've been stacking since 15 a share. Stack em tall. Gimme them dividends. Wish I was around for when Buffet invested, man...
How awesome some of you can keep them vested not everyone can choose to do that so your comments aren't helpful.
@f9 Agreed. I have been getting RSU's for about 10 years now and have not sold any. A lot of them were given out at under $35 a share. Dividends keep getting paid on them and when I retire in another couple years, should have an extra $75k+
Where to find shared success stocks? Are those stocks forfeited if I quit?
Really funny to me seeing people so negative about these and flipping into cash immediately. Do you not see what the stock has done in like 5 years? Had you just not sold you would've tripled your money.
I believe they made them available 2/5.
@a5 thank you!
You'll have capital gains (short term if held less than a year). Need to log into Merrill edge and download tax form when it's available or sync turbo tax and it can download automatically.
Usually available mid February