Beware of Employers Who Use Company Stock to Meet Your 401 (K)
You should definitely take advantage of 401 (k) compliance if your employer offers it, but if they match your contributions to stock rather than cash, your retirement will be linked to your company’s success when it doesn’t have to.
Find out if your company is equal to the stock by contacting the company that manages your employer’s retirement plan. If they do, your portfolio should not exceed 10% of the company’s shares, otherwise it could mean that your pension funds will not have the variety they need to be successful in the long term. If your employer only uses company stock, you can diversify other funds accordingly, or periodically trade your company stock (it is illegal for them to require you to hold company stock) and into more diverse funds. There may be a transition schedule in place, which means that over time you will have to pay more attention to your funds, but periodic review is something you should still do .
When It Comes To Your 401 (k), Don’t Just Put It And Forget | Billfold