Financial Planning

Most retirement plans don’t fail because people are too aggressive.

They fail because they’re just reasonable enough to go unquestioned.

A Googler asked me this week whether 3% was a solid COLA projection for retirement planning.

It’s a reasonable assumption.

It’s also doing more work than most people realize.

Every spring, the financial industry publishes its version of what you should be worried about. This year the list includes geopolitical conflict, oil prices, tariff shifts, inflation that will not fully settle, and an AI investment cycle that is reshaping entire sectors,  including the ones many of you work in every day.

The data behind all of it is real.

I want to walk you through a real scenario.

Not a hypothetical.

Not a headline.

A real household.

(Prompted by a sharp observation from Afrina M. on high-income pressure— this is what the math looks like inside a real household.)

A family of four.

Two kids.

If you work in tech, there’s a good chance a meaningful part of your wealth isn’t coming from your salary.

It’s coming from RSUs.

And in my experience, most people don’t struggle because RSUs are complicated…

They struggle because no one ever shows them how the pieces fit together.

Restricted Stock Units (RSUs) can be a powerful wealth-building tool for technology employees, but they can also create tax surprises if the rules are not understood upfront.

Many professionals assume RSUs work like a simple bonus. In reality, vesting can increase taxable income quickly, affect withholding, and influence later investment decisions.

For many employees at large technology companies, Restricted Stock Units (RSUs) can accumulate into a significant portion of their net worth over time.

Years of vesting schedules, refresh grants, and strong stock performance can gradually turn employer equity into one of the largest assets in an investor’s portfolio.

One of the most common questions technology professionals ask when their Restricted Stock Units (RSUs) vest is simple:

“Should I sell my RSUs immediately, or should I hold the stock?”

Employees at large technology companies often receive a meaningful portion of their total compensation through equity incentives such as Restricted Stock Units (RSUs). While equity compensation can create significant wealth-building opportunities over time, it can also introduce additional complexity around taxes, diversification, and long-term financial planning.

For many employees at large technology companies, a significant portion of total compensation comes in the form of Restricted Stock Units (RSUs). While RSUs can be a powerful wealth-building tool over time, they also introduce additional complexity around taxes, diversification, and long-term financial planning.