Earlier this month, Jason Zweig wrote a very informative article on the dangers of company stock in a company 401(k) retirement plan account. You can find a link to the article here.

I have met with many individual company 401(k) retirement plan participants who own “too much” company stock in their retirement plan account. This article speaks very well to the high degree of risk involved in this company 401(k) investment management strategy.

Mr. Zweig states the facts correctly. Just because you work for the company does not mean that the company stock is a safe investment. Working at your company does not make you an expert on the direction of the price of the company stock.

Ric Lager
Lager & Company, Inc.

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