Time Bomb

401(k)s stuffed with employer stock are a national calamity. Here's how to fix it

Employees at struggling big-name companies such as Gillette, Lucent and Campbell Soup have suffered some horrific losses in their 401(k) plans in the past few years. Dozens more plans of similar pedigree could implode at any time. Why? Too many companies have loaded their plans with too much of their own stock, leaving employees dangerously concentrated in a single security. Are you one of them?

Nearly 100 of the largest corporate plans have at least 30% of 401(k) assets in their own shares, says the Institute of Management and Administration's DC Plan Investing Report. That's a hefty slice sure to couple...

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