The report found similar trends with regard to higher concentrations of employer securities. For example, 25% of those over age 60 hold portfolios with 50% or more invested in company stock, compared to just 13% of those under age 30, and 15% of participants over age 60 hold 80% or more of their portfolios in company stock.
As Jeff Maggioncalda, president and CEO of Financial Engines, explained:
Unfortunately, the older employees holding the highest amounts of company stock have the least amount of time to recover if their company’s stock happens to take a hit. Many participants don’t realize that holding large amounts of company stock is actually a drag on the long-term growth of their portfolios.Source: Financial Engines Press Release (May 12, 2008)