Many experts recommend that you never invest more than 10 to 20 percent of your nest egg in your employer’s stock. While investing in your company stock can make you rich when things go right, it can also make your poor overnight if things go horribly wrong. My recommendation today is never invest more than 10 percent of your 401(k) plan money in your company stock, and if you’re already investing or getting company stock or options, I would pass on investing in the company stock in your 401(k) plan.
