We all learned something from Enron - avoid having your company’s stock in your 401(k). Some might think that working at a company gives them better insight on the company’s performance but the risks outweigh the rewards.
Key Takeaways:
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Employees who invest heavily in company stock have both their human capital and financial capital riding on the fortunes of a single company.
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Holding 0% in company stock in your 401(k) plan is best but 10% as an upper limit is considered reasonable.
Read more here: http://beta.morningstar.com/articles/782894/company-stock-in-your-401k-yes-its-still-a-bad-idea.html
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