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Author: BritishJez Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75642  
Subject: funds or company stock Date: 6/16/2005 4:49 PM
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sorry for the reposting, but i wanted to make sure it was seen :)


i've kept my investments as is and just reduced future contributions to the small cap and Genesis funds to 15% and raised the index and international funds to 35%.

One more thing, considering how well my company Genentech is doing and it's potential is huge, i probably should invest some of it into company stock no? but ever since Enron i'm reluctant to do so.
Here are all the funds available to me

COMPANY STOCK
GENENTECH COMMON

LARGE CAP
DOMINI SOCIAL EQUITY
GMO US CORE CL III
FID GROWTH COMPANY
FID US EQ INDEX POOL
CLIPPER FUND

SMALL CAP
NB GENESIS - TR CL
FID SMALL CAP STOCK

INTERNATIONAL
FID DIVERSIFIED INTL
LAU/R INTL SM CAP IS

Blended Fund Investments*
FID FREEDOM INCOME
FID FREEDOM 2000
FID FREEDOM 2010
FID FREEDOM 2020
FID FREEDOM 2030
FID FREEDOM 2040
FID BALANCED

Bond Investments
STABLE VALUE
FID MGD INC PORT II
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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46531 of 75642
Subject: Re: funds or company stock Date: 6/16/2005 4:59 PM
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You can invest some, but I would not invest all or even a significant portion. Also, be aware that in a 401k, you are not actually buying shares in the company, but in a company stock fund operated by the plan adminstrator. If you want to own shares of the company with full proxy priviledges, you need to participate in an Employee Stock Purchase Program or purchase your shares independently.

Fuskie
Who has liked the Fidelity Small Cap Stock fund in the past...

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Author: BritishJez Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46532 of 75642
Subject: Re: funds or company stock Date: 6/16/2005 5:01 PM
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Thanks for the clarification Fuskie

Yes i put the max 15% into the ESP plan in addition to the 401k.

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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46533 of 75642
Subject: Re: funds or company stock Date: 6/16/2005 6:11 PM
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I like ESP, I don't like company stock in a 401k (or at least no more than 10%). Your 401K should be a highly diversified investment. Having 10%+ in one position would not result in a diversified investment. Also, companies can FREEZE the stock in a 401k. That is why Enron was ENRON. Those still working had their stock frozen in the 401k and they were not allowed to sell it. If you owned it outside of your 401k, You should eventually have access to the sale of it and/or rolling it out into your own brokerage account. Plus, in a 401k, you can only buy/sell when the plan administrator decides. Sometimes this can be good but don't always count on it; especially if the stock if tanking and you want to get out of it.

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Author: PolymerMom Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46537 of 75642
Subject: Re: funds or company stock Date: 6/16/2005 9:51 PM
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That's quite a nice choice, even ignoring the Freedom Funds!

Do you really control where the company match goes? Every place I've worked it automatically goes to company stock, which can't be sold until you reach a magic age, such as 50.

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Author: OldOne Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46542 of 75642
Subject: Re: funds or company stock Date: 6/17/2005 12:26 AM
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I used to put money into company stock, until the wisest old investor I knew at the company asked me: "What would happen if the company went bankrupt?"

I suddenly realized that I would lose not only my job, but also a significant portion of my savings.

It is very difficult for me to believe that in all the companies of the world, there aren't at least a few with prospects as bright as Genentech.

Much better to put any discretionary money there.

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Author: BritishJez Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46547 of 75642
Subject: Re: funds or company stock Date: 6/17/2005 11:30 AM
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Yes we can choose where the 6% match goes

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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46848 of 75642
Subject: Re: funds or company stock Date: 7/12/2005 4:59 PM
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Also keep an eye on your international investment. 35% might be a bit high currently. As our dollar improves, international investments will lose ground. Many firms are recommending their top-tier clients to reduce their international holdings.

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