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Can anyone give me advantages to investing 401k into employee stock option plan?

My companies holding co. is selling off . My co.now wants the employees to invest 401k and profit sharing monies into the ESOP program to purchase the company. Is this a good idea and can a good retirement be made from these kind of ventures? Any help on this topic would be appreciated.

Public Comments

1. Not knowing the specifics, my observation would be that most financial advisors caution against concentrating too much of your retirement investment in any one stock, including your own company's (the case of Enron is alway cited). I would be uncomfortable doing it.
2. Obviously it's a huge risk. Sure there's an upside, but I'm not sure if your adequately compensated for the risk there. But if all goes well, yes, a good retirement could be made on the venture. Same things is true if you cashed out all your retirement money, bet it all on one roll of the dice in Las Vegas and won. That would lead to a good retirement too. Wanna play? I wouldn't. Bill Gates probably would (and did). It's your call.
3. have the CFO of your company talk to the employees and determine if the company is profitable and will continue to be so