The general consensus among financial experts is that an employees adequately diversified portfolio should have no more than 10 to 20 percent of total investment assets in the company stock where they work. Much talk concerning the recent bankruptcy of Patriot Coal has been directed at the lost pensions of retirees. But the biggest losers were those who had also had their retirement pensions invested in the company in which they are employed. Numerous corporations are using loopholes to dump their pension obligations. Many have begun to downgrade their pension benefits or combine them with other plans. If you are one of the 9.7 million participants in 401(k) plans that offer company stock and you have more than 20 percent of your assets in company stock, and this investment also constitutes more than 20 percent of your overall investment portfolio, you may want to consider re-balancing your investments to increase diversification.
Posted on: Tue, 18 Jun 2013 16:51:29 +0000
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