The 401k Mistake That Wiped Out Enron Retirees

In 2001, Enron employees held 62% of their 401k in company stock — then it vanished with the company. They lost the paycheck and the retirement in one shot.

That's the concentration trap, and it still catches workers today. In this video we run the real numbers: GE stock fell 60% while the S&P 500 rose 25%, and over a third of GE's 401k assets were still riding on company shares. We break down why holding your employer's stock is a "double bet" — your income and your nest egg both depend on one company — and why holding one stock instead of thirty more than doubles your risk with no extra reward.

You'll learn the simple 10% rule most advisors use, why old-school pension law caps company stock at 10% but 401k plans have no limit at all, and the practical steps to diversify down safely — including a quick note on the NUA tax move if your shares have big gains.

If your match, ESPP, or default fund has quietly stacked company stock in your account, this one's for you.

Sources: Center for Retirement Research at Boston College; Brookings Institution; U.S. Department of Labor (EBSA); National Bureau of Economic Research (NBER); U.S. SEC; U.S. Senate Enron 401(k) hearing record; Vanguard; EY; Fidelity.

Educational, not financial advice. Talk to a fiduciary fee-only advisor for personal decisions.

Видео The 401k Mistake That Wiped Out Enron Retirees канала The Financial Pulse