Issues Regarding Offering Company Stock in our 401k PlanQuestion: What are the pros and cons of offering company stock as an investment option in our 401k Plan? Answer: Some of the advantages for having employer stock in a retirement plan include:
A major disadvantage of having employer stock in your retirement plan is that large company stock holdings may increase the volatility of employee's portfolios. Employers run the risk of lawsuits if the stock falls in value. This includes shares held in mutual funds they invest in, Employee Stock Ownership Plans (ESOPs), and stock options, as well as shares held in the retirement plan. How can you protect yourself?
Click here for more information on the issue of company stock in a 401k plan. About Financial Finesse: Financial Finesse is a full-service unbiased financial education company that works with Plan Sponsors and Plan Advisors to design company and plan-specific financial education programs that address the gamut of plan participant and business needs. Our award winning financial content is delivered in multiple formats: live, online, telephone, and through financial planning kits. If you are interested in learning more about workplace financial education programs, contact one of our education consultants at AskFF@financialfinesse.com. The Ask Financial Finesse Q&A service is designed to provide general information on trends and developments in workplace financial education programs and participant education strategies. Due to the complex nature of financial benefits and/or workplace financial issues, the information contained in this document is not to be construed as advice. If you have questions about your specific situation, you, may want to contact a financial education consultant. Due to volume, Financial Finesse will be unable to answer all submitted questions. | ||||
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