Business Quote by John C. Bogle
“Working for company X and having a substantial portion of your retirement plan in company X is simply exposing yourself to too much risk, because the company is both your employer and the source of your retirement income. So if something goes wrong, you lose both your job and your retirement plan.”
About This Quote
Source Book: Common Sense on Mutual Funds, John C. Bogle, 1999
Concentrating retirement assets in your employer’s stock creates double exposure; a downturn can wipe out both income and savings.
In simple terms: Putting all retirement money in your employer’s stock is risky.
Key Takeaway
Diversify retirement investments.
Themes
risk
finance
retirement planning
Mood
cautious
analytical
Type
advisory
financial
When to use this quote
- employee stock plans
- retirement accounts
- financial planning
- career changes
Key Concepts
portfolio diversification
conflict of interest
Questions to Reflect On
- Do you know how much of your retirement is in company stock?
- What steps can you take to diversify now?
A Different Perspective
Diversification may reduce upside potential of employer stock.
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