20. Don’t Overload on Company Stock

Diversify, diversify, diversify. We literally cannot say it enough!

Investing in company stock could be a brilliant idea depending on your current financial situation, but watch out! Just because you trust your company doesn’t mean you should overload on their stocks.

The same principles apply no matter what you want to invest in. No matter how well any company performs, make sure your portfolio is diversified so that if the worst comes to worst, you’ll be covered.

Financial advisors often say that company stock shouldn’t make up more than 20% of your overall 401(k) portfolio.