RSUs: How can I get the most from my package?

Mar 5, 2025

James O'Reilly, a financial advisor and co-host of the Australian Retirement Podcast, joins to unravel the mystery of Restricted Stock Units (RSUs) and Employee Stock Purchase Plans (ESPPs). He explains why RSUs exist, how they impact cash flow, and the tax complexities involved. Discover common pitfalls employees face with their RSUs and strategies to avoid them, ensuring these financial tools help achieve major goals. Plus, O'Reilly shares a useful spreadsheet to simplify management of RSUs!

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INSIGHT

RSUs: A Win-Win

RSUs, or Restricted Stock Units, are a form of equity compensation.
They benefit both employees and employers, aligning incentives and aiding retention.

INSIGHT

ESPPs: Discounted Shares

ESPPs (Employee Share Purchase Plans) let employees buy company shares at a discount.
Unlike RSUs, ESPPs require employees to use their own after-tax money.

ADVICE

Understanding Total Compensation

Treat RSUs as part of your total compensation package, including salary and super.
Understand your RSU entitlement upfront to gauge your potential total remuneration.

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In this Australian Finance Podcast episode, your host Owen Rask, Chief Investment Officer at RASK, talks with James O'Reilly, from Northeast Wealth about how to maximise the financial outcomes from your RSUs and ESPP options.

If you like this Australian Finance Podcast episode on maximising your RSUs, you'll love the series. Don't forget to subscribe for weekly shows on Apple, Spotify, YouTube or wherever you get your podcasts.

Topics covered today:

What are RSUs? How do they differ from ESPPs?
Why do RSUs exist and how do they work?
The inevitable tax complexities that accompany RSUs
Effectively managing cashflow
How can I ensure my RSUs help me to achieve my big financial goals?
Common mistakes made with RSUs
How you can take action today

Resources for this episode

Northeast Wealth’s free RSU Management spreadsheet:

Https://docs.google.com/spreadsheets/d/1d3KtS73aazJsS2OTj43VHPPG2Yqqsj_h/edit?usp=sharing&ouid=106053867535240111886&rtpof=true&sd=true

Video from James explaining how to use this: https://www.loom.com/share/dc24459682964b24961a2cdf664eccdb

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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg

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