Patience Has a Blind Spot
What if the most disciplined thing you do with your money is quietly working against you in one specific account?
Today I walk through a family that had not touched their investments in several years. While that is highly unusual, what was not was our review of one of the spouse’s equity compensation.
The flat rate a company withholds at vest can sit well below what a high-earning household actually owes. And every vest quietly adds to the same position, which means holding is not standing still.
Patience answers how long you hold something. It says nothing about how much of it you own.
Pull up your most recent vest confirmation, find the shares that vested and the shares withheld for taxes, divide one by the other, and write that number down next to your marginal bracket to determine if you have a gap.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
Patience answers how long you hold something. It says nothing about how much of it you own. With vesting equity, holding is not standing still; it is adding to the same position every quarter.
1 Way You Can Apply This
Pull up your most recent vest confirmation, divide the shares withheld for taxes by the total shares vested, and write that percentage next to your marginal tax bracket.
1 Question to Ask
If my salary, my health coverage, and my largest single holding all came from the same company, would I have built it that way on purpose?
Resources Featured in This Episode:
Your Holding Period Matters Most
Understanding the "Big Beautiful Bill": Tax Changes That Impact Families Balancing Careers and Kids
Staying the Course: How Long-Term Investing Builds Wealth Through Market Cycles