With U.S. stocks at record levels, many employees are feeling wealthier on paper, particularly those whose compensation includes company stock. When an employer’s shares are rising quickly, it can feel rational to hold on, buy more or reinvest employee stock-plan proceeds into the same name. Familiarity breeds confidence, and few investments feel as intuitive as the company that issues your paycheck.
But market highs often mask one of the most overlooked risks facing employees today — overconcentration in their employer’s stock. When income, career stability and a large portion of net worth are tied to a single company, even a modest downturn can have an outsize impact on financial goals.
Opinion: Loading up on your employer’s stock is tempting in a bull market. But how much is too much?
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With U.S. stocks at record levels, many employees are feeling wealthier on paper, particularly those whose compensation includes company stock. When an employer’s shares are rising quickly, it can feel rational to hold on, buy more or reinvest employee stock-plan proceeds into the same name. Familiarity breeds confidence, and few investments feel as intuitive as the company that issues your paycheck.
But market highs often mask one of the most overlooked risks facing employees today — overconcentration in their employer’s stock. When income, career stability and a large portion of net worth are tied to a single company, even a modest downturn can have an outsize impact on financial goals.
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