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Financial Planning / Foolish 401(k)s


Subject:  401K help! Date:  1/11/2013  1:32 PM
Author:  AON2013 Number:  24994 of 26385

I am hoping to get the opinion of experienced investors regarding my 401K situation. I have ended up with a large percentage of company stock in my 401K portfolio (real foolish I know). My current company stock price is just below $9 and my cost per share I estimate at $16. I seems that the stock will not reach $16 any time soon given the fact that the stock has fluctuated between $5 and $12 the last few years. However I do have 20 years until retirement and I work for a dow-jones company. Every month my company matches 6% of my salary in company stock. What would most experienced investors do:
• Cut my losses and simply move my money to other more diverse investments. My company 401K has many ETF options for example
• Stay put and hope that at some point over the next 20 years my company stock rebounds. Every month my company continues to match 6% of my salary in stock
• Stay aggressive and realize that I am buying company stock at a bargain price. Possibly even move more money to company stock in order to bring down my cost per share. At some point over the next 20 years the stock will rebound
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