Investing in your Employer

By Mike Hillyer | Related entries in Financial Management

There is some good advice over at All Things Financial about holding stock of your employer (found via the aggregator):

The point of all this is the importance of having a balanced approach when saving for retirement. Don’t fall in love with your company’s stock. It could end up being a fatal mistake for your retirement plans!

It is good advice, which I also read in The Automatic Millionaire, which recommended treating the stock of your employer as a high-risk investment and therefore limiting employer shares to no more than 5% of your holdings.

Of course, the nice thing about stock options is you don’t have to hold the shares to benefit from the option in the future. I personally received stock options recently and for now I think I’ll hold the option and not exercise it until the stock is valued a bit higher.

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This entry was posted on Thursday, April 28th, 2005 and is filed under Financial Management. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

One Response to “Investing in your Employer”

  1. Letters From Exile Says:
    April 29th, 2005 at 10:21 am

    Should You Own Stock in Your Employer

    The Wealthy Blogger, one of the best new blogs I’ve read in a
    long time, has a piece today about owning stock in your
    employer.

    This is a subject that is close to almost every high tech working in
    Silicon Valley, and one that I have thought about a l…