401K Company Match with Stock- Should I sell?
401k Company Match with Stock
Last time I wrote about my 401k, I wrote about how when the company matches in company stock. Well, after I received my quarterly bonus on the 15th of this month, I was given even more company stock, which is now 28% of my 401k. With the way that our stock price has gone (from roughly $36 a year ago to around $5 a share currently), I want to get rid of some of the stock and reallocate it to another fund. I don’t like being so vulnerable. I know a few people that have 100% of their 401k in company stock. I could never do that.
My biggest problem now is that I am afraid to sell it. It’s not that I am afraid of losing money; well, I am to a certain extent, but moreso that I am afraid of screwing something up in my 401k and then not being able to reverse it or get charged astronomical fees. I know that once I do it, I will feel better. My feelings are that if I sell some of the stock, there is a lot that I’ve recently bought or was given at around $5 a share. If I sell it, I’m not losing any money because it’s right around there. I may lose a little, but for peace of mind it’s worth it. I think 28% is a high amount to have tied up in company stock.
What do you think- should I sell or should I keep it? Does your company match 401k contributions?