In this podcast episode, TJ van Gerven discusses the dangers of not selling restricted stock immediately when it vests. He explains that while receiving vested shares may feel like a cash bonus, they are illiquid and cannot be accessed immediately.

van Gerven highlights the concentration risk of holding a significant portion of one's net worth in a single stock, suggesting that owning more than 5% is considered concentrated.

He also warns about the potential tax implications, as the withholding on vesting stock may not match an individual's actual tax rate.

In conclusion, he emphasizes the importance of understanding these risks and suggests selling immediately and diversifying investments, unless comfortable with the potential downsides.