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Re: bar1080 post# 175988

Tuesday, 08/11/2020 7:57:11 PM

Tuesday, August 11, 2020 7:57:11 PM

Post# of 234103
Fwiw, 'professional advice' is to NOT DO THIS

I always wondered if many employees fund their 401Ks solely with shares in their employer. Anyone know?

Due to concentration-risk - if your company underperforms, you could lose your job as well as see the share-price damaged. To avoid that double-whammy, it's advised to 'diversify' retirement dollars elsewhere...

Nowadays I believe it's MUCH MORE TYPICAL for company 401ks (and now Roth 401ks) to offer index-funds and 'target-date' funds based on years-til-retirment.

That said, I know a few who continue to put investment-dollars into their company stock, but without the matching element. Not arguing against company stock, but seems irrational to forgo the match in that case.

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