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My employer's retirement plan is an ESOP with optional individual contributions. Over the long haul (meaning "every period in the Motley Fool's charting feature's records greater than one year, as of this afternoon"), the company's stock has beaten the S&P 500, the DJIA, and the NASDAQ.

There are a few other options available in the plan, but no index funds, and nothing else that appears interesting to me. In addition to the 'optional cash investment' option of the plan, the company puts money in an account for me, based on my salary and years of experience. The company's money all goes into purchasing the company's stock, and will, at least until I'm vested.

I know the value of diversification, and I know that, statistically speaking, I ought to be both 'safer' and get higher returns in an index fund than in just one stock, but I'm having major trouble reconciling the math that says 'diversify into the other options' with the pictures on the graphs that say 'stick with what has a proven track record.'

What I'm thinking of doing is sticking with my employer's stock in my company's plan, and in my Roth IRA, buying an S&P 500 index fund. That'll give me about $9,500 in my employer's stock (between my contribution and the company's contribution) this plan year and $2,000 in an index fund for the same period.

Does anyone have any better ideas?
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