I Sold All of my Company Stock
I logged in to check my 401k performance the other day and realized that about 35% of my 401k portfolio was in company stock. I personally don’t allocate my contributions to company stock, so it was all from the company match. While I am thankful for the 401k match, I also don’t like having that much of my 401k tied up in company stock. I don’t know much about investing, but I do know that it’s not good to have your eggs in one basket, especially in your company stock.
I am reminded of a couple years ago when the bank I work for was not doing so well. At one point our stock was $45 a share. Before we were bought out, our stock was down around $2. Many people, including the branch manager and licensed investment adviser, had their entire 401k in company stock. To say they lost money would be an understatement. Unfortunately, I know this happened to many others as well, and not just those who worked at the bank.
I sold all the stock and put it into a money market fund until I decide what I want to do with it. At least it will be earning interest (although not much) while I make a decision. I left my future contributions how they were, and I’ll have to go back in 3-6 months and reevaluate. If I have too much stock then, I’ll sell again. I’m thankful that the company still does a 401k match.
What’s funny is the investment adviser at my branch told me that I shouldn’t do it. I’d make more money if I left it in the stock. I didn’t feel comfortable doing so, so I did what I thought was best.
Does your company match your 401k contributions? Do you receive stock if so?