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At my first job, I had lunch everyday with a group that included several men that were close to retirement. One of them was like your husband; he had his entire retirement account in company stock. About 6 months before he was set to retire, the stock took a nosedive (down 30%). Because of the policies of when assets could be shifted in the account, he was looking at a >300K loss if he cashed out. He could no longer afford to retire and ended up working nearly 4 more years waiting for the stock to rebound (it did and then some). In his case things worked out because (1) he was still young enough to work 4 more years and (2) the stock came back rather well. You can imagine how devestating this could have been if either of those had not worked out for him.

Having witnessed a friend go through this, I have resolved to never keep more that 20 - 25% of my assets in any single stock (I usually start looking to reallocate when one grows to 15%).

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