About Me 0096: Share trading has existed pertaining to regarding green millennium however provides solely already been available to the common investor while using growth associated with laptops along with the Web. Investment stock investing doesn’t require you to be considered a personal wizard or perhaps company guru but you will find there's mastering curve to get as a result of. A lot of people assume that it takes a huge bill having a bunch of money to be able to time deal within the stock market. Men and women imagine they must wait around untill old age as soon as they’ll have sufficient period

People have become millionaires as a result. Nevertheless, many financial experts say you may be making a huge mistake if you invest too heavily in your company's stock, especially if you are depending on the investment for too much of your retirement income.

As one example of the dangers of putting too much of your money into your company, experts often point to the Enron scandal. Employees saw the value of their stock crash from $80 a share to just pennies.

As reported on www.cbn.com, 42% of employees investing in retirement plans invested only in their own company. Even years later, after the Enron scandal and other huge loses of company retirement plans at Worldcom and HealthSouth, one in five employees still invested more than half their assets in company stock, even though the overall percentage of those investing only in their own company had dropped from 42% to 32%.

Investing too heavily in company stocks goes against government recommendations. To meet the diversification standards of the Security and Exchange Commission, a retirement plan must not invest more than 5% of its holdings in the stock of one company. According to those standards, many investors are many times more heavily invested in one company-their own-than the government suggests.

According to the website, http://mutualfunds.about.com, the Washington Post recently reported that the average 401(k) account has 42% of the money invested in company stock. Three of every four employees still have money invested in company stock.

Experts feel employees may so heavily invest in company stock for a variety of reasons. One is that they feel they have a greater idea of the value of company stock than the general public, because they know about upcoming projects and products. Also, companies will sometimes match employee contributions with company stock. Employees often also want to show faith in their company-even though the company is actually not watching how their employees invest for retirement. Another reason employees may invest so heavily in company stock, sometimes to their detriment, is companies often offer discounts to employees buying the stock. Some may invest because they feel disloyal to the company if they don't. Some may have heard the true stories of those who invested in their company stock, became millionaires and retired early.

Experts often point out how the value of company stock can fall during a recession, in addition to employees losing their jobs or health benefits.

Experts point out employees can lose big money, even if they invest in the company stock of a blue chip company. In 2001 more than 36,000 Boering were laid off, and the value of company stock fell 60%.

In short, while investing in company stock may sometimes be a good idea, experts warn against investing too heavily.

Citations: Dustin Woodland, Dangers of Company Stock, About.com
Austin Pryor and Mark Biller, Will Company Stock Help--or Hinder--Your Retirement, CBN

About Me 0096

Wednesday, August 8, 2012

CC <b>News</b>: Video Contest Winners Announced - Creative Commons

CBS <b>News</b>: Shooter Identified As Former US Military Member « CBS <b>...</b>

Carly Rae Jepsen's 'Kiss' Album Due Sept. 18 | Billboard.com

No comments:

Post a Comment