Beware of Company Stock
June 2, 2008
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Do you own company stock in your 401(k)?
That’s putting all your eggs in one basket.
If your company hits the skids, your job and your retirement could go down right behind it.
I know it’s easy to believe in your company and trust it. Since many companies match your contributions with company stock on a regular basis, you have to be diligent about moving it to something else.
Check your portfolio at least once a year (quarterly is even better), sell the company stock and use the money to rebalance your portfolio. If you have access to a fund based on your target retirement date, move the company stock there.
A target fund adjusts the holdings in the portfolio with an eye to how long it is until retirement. If you have a long time, it will have more stocks and if you are quite close to retirement, you’ll have more cash and bonds.
If you have questions about investments, contact Cindy.
Warmly,
Cindy Morus, The Money Mender
Note: Cindy does not give specific investment advice, recommend individual investments or sell investment products. She focuses on educating you about investing your money.
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