Randy Myers, CFO.com | US
November 9, 2009

NO WAY, Don't work for and invest your pension in your employer

I'm thinking about Enron and U.S. West as employer stocks. The employees already have taken risk in their finances by working for their employer. I don't think any responsible person who is trying to diversify their investment portfolios, especially their pension should invest in their employer. If you work for exchange listed company, or a company that is owned by stockholders, never buy their stock for your pension fund or any other reason. You have taken a huge risk just working for the employer. The risk is so huge, just diversify elsewhere. I am reminded of "Mad Money" weekly segments about diversified investment portfolios and can think of no other bigger mistake, than to both work for and invest in your employer. Please think about the risk of what you are doing, putting all your finances into one basket. Please don't do that. The ESOP is not beneficial for the employee's diversified portfolio strategy. Boo-yah.

Gregory J. Folk, CPA

Posted by GREG FOLK | Nov 14, 2009 7:32 AM ET

A good resource on ESOPs

For reliable information and advice on ESOPs, contact the Beyster Institute, a unit of business school at the University of California, San Diego. It is a nationally recognized center of expertise on employee stock plans, and can be relied on to provide objective, accurate guidance without trying to sell you a product. Go to www.rady.ucsd.edu/beyster/.

Posted by Martin Staubus | Nov 10, 2009 11:27 AM ET