Boomers Keep Investing in Company Stock: Despite meltdowns at companies like
Enron and WorldCom, it seems some employees never learn. A recent survey found
that one-third of participants in large 401(k) plans still have more than 20
percent invested in company stock.
The survey, which was conducted by Financial Engines, a Palo Alto,
California-based provider of financial advice, found that older workers are the
worst culprit when it comes to owning too much company stock in their 401(k)
plans. Forty-three percent of workers over the age of 60 have more than 20
percent of their 401(k) assets in company stock.
It seems employers could do more to prevent employees from being
over-invested in company stock, the survey notes.
The study found that while 93 percent of companies polled match employee
contributions exclusively with cash, only 7 percent of companies have caps that
limit the amount of company stock employees can hold in their 401(k) accounts.
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