Retirement plan decisions made easy
abcInvesting Blogs
May 2010
May 20, 2010
Easier to Sell Company Stock in Your 401k
New regulations make it easier for you to sell company stock within your 401k. For more information about the new regs, see this article. I am not a fan of company stock in your 401k. I prefer to see you more diversified, focusing on investments across different types of assets (stocks and bonds, foreign and domestic), and with the inherent diversification of mutual funds. However, some companies make their matching contribution in company stock. If you have to keep that stock for a while, fine. It's a gift, so accept it. But as soon as you can sell it, you should sell it. You already have a major risk with respect to your company: your job. If you also own company stock, you are unnecessarily magnifying your risk. For more information, check out Lesson 4 of "The ABCs of Your 401k."
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