Turn Your Amazon Compensation
Into a Long-Term Wealth Strategy
Amazon’s total compensation package is more than just a salary. RSUs, refreshers, and performance bonuses can significantly grow your wealth. But without a strategic plan, they can also bring tax burdens and financial risks.
At Mercer Advisors, we help Amazon professionals maximize their compensation, create a tax-smart strategy, and build financial security through customized wealth planning. Whether you’re approaching your first refresh or preparing for a major liquidity event, we’re here every step of the way.
Why Amazon Employees Need Specialist Financial Advice
Amazon employees receive a unique compensation structure that requires specialized financial planning. Unlike traditional salaries, RSUs introduce vesting schedules, stock volatility, and tax implications that can impact long-term financial growth. Without strategic guidance, employees may face concentrated stock risk, suboptimal tax outcomes, or missed investment opportunities.
Mercer Advisors provides tailored financial planning to help Amazon professionals:
- Optimize RSU sales for tax efficiency
- Diversify investments beyond Amazon stock
- Align compensation with retirement and wealth-building goals
Understanding how and when to sell your RSUs, and how they fit into your overall financial picture, is essential.
Plan Your RSU Sales with Tax Strategy in Mind
How RSU Income is Taxed
Amazon RSUs are taxed as ordinary income when they vest. If you sell them immediately, you avoid further tax implications, but if you hold them, future gains are subject to capital gains tax.
Sell-to-Cover vs. Tax Withholding Methods
A sell-to-cover strategy automatically sells a portion of vested RSUs to cover taxes, ensuring no out-of-pocket expenses. Alternatively, manually managing tax withholding methods may offer greater flexibility for optimizing deductions.
How to Minimize Tax Liability Through Timing
Selling RSUs strategically (whether immediately upon vesting or holding for long-term capital gains) affects your taxable income. Planning sales based on year-end tax brackets, refresh cycles, and other earnings can reduce overall tax exposure.
Specialized Services for Amazon Employees
- Equity compensation planning (Amazon RSUs and refresh cycles)
- Employee benefits optimization (retirement plan, insurance, perquisites)
- Investment strategies to reduce concentrated stock exposure
- Tax optimization for RSU vesting and sales
- Retirement planning that integrates stock-based income
- Insight into how events like mergers and acquisitions affect your long-term plan
- Cash flow strategies to support startup transitions or career shifts
Mercer Advisors is not a law firm and does not provide legal advice to clients. All estate planning documentation preparation and other legal advice is provided through select third parties unaffiliated to Mercer Advisors, depending on the complexity of the estate, additional fees may apply. Tax preparation and tax filing services typically requires a separate fee from our investment management and planning services.
Diversify Beyond Amazon Stock
Amazon RSUs can be a powerful source of wealth, but when too much rides on one stock, your financial future can become vulnerable to volatility. We help you transition from concentrated equity to a diversified portfolio—strategically, tax-efficiently, and aligned with your long-term goals.
Managing Concentrated Stock Risk
RSUs provide significant upside, but relying solely on Amazon stock can create risk, especially in volatile markets. A balanced portfolio helps reduce dependency on a single employer’s performance.
When to Sell RSUs and Reinvest
Strategic RSU liquidation allows you to reinvest diversified assets, helping to stabilize wealth across market fluctuations. We can help you determine the right timing for reinvestment, developing a personalized portfolio that’s suitable for your financial plan.
Aligning Your Stock Strategy with Financial Goals
Your Amazon compensation and total financial plan should support your key goals like retirement, major purchases, and/or philanthropic efforts. We build stock liquidation strategies aligned with your personal financial vision.Additional Solutions to
Maximize Your Amazon Wealth
Your RSUs are just one piece of a bigger financial picture. Whether you’re navigating complex tax scenarios, planning for early retirement, or managing concentrated stock risk, our integrated strategies are designed to help you make the most of your Amazon compensation—today and for the long term.
Retirement & Long-Term Financial Planning
Coordinating RSU Income with Retirement Savings
RSUs present an opportunity to accelerate retirement savings when structured correctly. We help you integrate stock proceeds with your 401(k), Roth IRA, and taxable investment accounts for sustainable and tax-efficient retirement income.
Planning for Early Retirement or Career Changes
Amazon professionals considering early retirement or transitioning to new roles need a financial plan that leverages stock-based income without over-reliance on employer equity. We can help you create a predictable cash flow plan to provide stability amid career transitions.
Integrating 401(k), HSAs, and Outside Investments
Amazon offers competitive benefits. Coordinating those with your personal investments helps ensure the most efficient use of retirement plan contributions, HSAs, and employer stock awards and allows you to see a comprehensive view of your whole financial life.
Equity Compensation Checklist
Amazon’s equity packages can be a powerful driver of wealth—but only if you manage them strategically. Use this checklist to help stay ahead of key dates, tax obligations, and diversification opportunities so your RSUs work for your long-term financial future.
FAQs for Amazon Employees
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It depends on your financial goals. Immediate sales avoid stock volatility, while holding RSUs allows for potential long-term growth at lower capital gains tax rates.
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Vested RSUs are typically taxed at ordinary income rates. Selling after a year qualifies for lower capital gains rates—typically 0%, 15%, or 20%, depending on your taxable income.
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Amazon issues refreshers annually based on performance, with multi-year vesting schedules that impact tax planning and overall compensation.
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Unvested RSUs are forfeited upon departure. Understanding vesting cliffs and timing career moves strategically can maximize retained stock earnings.
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Diversification strategies, timely RSU sales, and structured wealth planning all help protect earnings from market volatility and employer stock fluctuations.
