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(Marketwatch)   Market research recommends not to invest in company stock in your 401k account ... especially if you work for Facebook   (marketwatch.com) divider line 21
    More: Fail, Facebook, Investment Company Institute, funds, adjusted basis, UPS, diversification, David Blanchett  
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1109 clicks; posted to Business » on 26 Aug 2013 at 10:22 AM (48 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



21 Comments   (+0 »)
   
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2013-08-26 10:27:04 AM
Good advice regardless of the company -- don't put all your eggs in one basket. If the company goes down, you'll likely lose your job and your retirement. Diversify your 401(k), and at least if you get downsized you'll still have a decent chunk o' change.
 
2013-08-26 10:37:04 AM
Duh, duh, duh. My employer is great and I think they're doing well, but I have two significant investments with them: it's what I rely on to pay bills and to gain career experience. I don't want their stock, as much as I like them.
 
2013-08-26 10:43:35 AM
Owning a little stock in the company you work for is OK but I would never go over 10%.
 
2013-08-26 10:52:49 AM
All the public companies I worked for matched 401K with company stock.  It is not a bad move to transfer company stock to a S&P index fund once vested.
 
2013-08-26 11:15:15 AM
Just ask the former Enron employees.
 
2013-08-26 11:18:01 AM
I had a friend who worked for Sprint and made this mistake. Even liquidated other holdings to buy Sprint in his older retirement accounts. He lost about 90% of his money.
 
2013-08-26 11:27:35 AM
Facebook is currently trading 30 cents off its all-time high, but whatever...

/ didn't buy FB
// don't regret it
 
2013-08-26 11:46:30 AM

TheGreatGazoo: Just ask the former Enron employees.


A big giant THIS. Even worse those douchenozzles running the company kept encouraging employees to buy more Enron stock. Of course, folks should know not to put all their eggs into one basket.
 
2013-08-26 12:04:51 PM

flaminio: Good advice regardless of the company -- don't put all your eggs in one basket. If the company goes down, you'll likely lose your job and your retirement. Diversify your 401(k), and at least if you get downsized you'll still have a decent chunk o' change.


A Fortune 100 company I worked for actively encouraged people to invest their 401k's in the company.

I found the idea laughable. Turns out, I was right. Whouda thunk it?
 
2013-08-26 12:38:36 PM

TheGreatGazoo: Just ask the former Enron employees.


Its largely their own fault.  I have no sympathy for anyone who puts all of their money in one investment.

/and facebook is not a bad investment
//owns stock in facebook - its less than 3% of my portfolio
 
2013-08-26 12:41:06 PM

Muta: All the public companies I worked for matched 401K with company stock.  It is not a bad move to transfer company stock to a S&P index fund once vested.


That would require people to actually pay attention to their retirement plans.

/fortunally my public company performs their 401K match with cash and not stock
 
2013-08-26 12:41:10 PM
My former and current employer don't have stock, so it's all in diversified funds.  Wife has money in her company's stock and I told her to take some of the profits and buy something else.

Tho converting to cash and waiting for the upcoming correction sounds like a plan too.
 
2013-08-26 01:27:44 PM
bullets and beans
 
2013-08-26 02:27:55 PM
My company does their match in company stock.  I just go in once every 2 months or so and move it into something else.
 
2013-08-26 02:33:25 PM

mediablitz: A Fortune 100 company I worked for actively encouraged people to invest their 401k's in the company.


Of course they did, having the workers invested is good for the company. Whether or not it's good for the workers doesn't matter to them.
 
2013-08-26 02:35:38 PM
Hey -  I have bucks in FB. It's going great.

WTF subby?
 
2013-08-26 03:21:14 PM
The only company I ever bought shares of while I was working there was Qwest (symbol QWST, then Q as they got too big for their britches). Great timing... bought in late 99/early 2000. The rest is history.
 
2013-08-26 03:41:19 PM
farm5.staticflickr.com

You shouldn't be asking what's good for you, subby. You should be asking: is this good for the COMPANY?
 
2013-08-26 03:47:46 PM
Depends on the company.

My dad's work allows you to automatically deposit 1-10% of your paycheque into company stock.  Up to 6%, they match it 1:2.

If he started putting 6% in there 20 years ago when they began offering it, it would be worth millions today.
 
2013-08-26 04:33:07 PM
When my wife and I got engaged and I started going through her finances, I was appalled that half of her 401K was in her company's stock.

Then a few months later, the company was bought by a private company and they paid 25% more per share than what the stock was trading at. So, it worked out well.

CSB
 
2013-08-27 01:39:32 AM

enry: My former and current employer don't have stock, so it's all in diversified funds.  Wife has money in her company's stock and I told her to take some of the profits and buy something else.

Tho converting to cash and waiting for the upcoming correction sounds like a plan too.


THE correction huh? Now if you'll just follow-up and tell me when and how much I will go make a few million bucks.
 
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