So my wife and I share a bank account and all of our finances, but we rarely ever discuss what each of us have in our 401k(s), we kind of just let it do it's thing. So I get a message from my wife yesterday and she noted that she had $185K in her IRA. I thought that was odd as the last she had mentioned she only had about $130k and that was only a year ago. So I asked for her login, and logged in to view your account, and sure enough $185k. I then noted the Asset Allocation was assessed as "Most Aggressive" I then looked a little further and realized that all $185k was invested in a single stock and has been for 15 years. It just so happens that it's YTD is +26%, it's best year return through Aug 2017 is +36%. So we've been pretty lucky, i'd say. This isn't an advisable strategy is it? I completely understand the implications of what happens if the needle turns the other way. Should we quickly be looking to change this, speak to a financial adviser immediately, wait? I really just kind of freaked out and thought this can't be good. Her boss, (who recently passed)told her what stock to invest in 15 years ago...so she picked that one and just put it all towards it.
Edit: Turns out it's a mutual fund not a stock, and I misread the analysis and it seems this IS an appropriate level risk (I misread as ISN'T) for someone my age. Good grief, I would not do well on NYSE floor... :) Thanks for everyone's quick replies and information. I had doomsday in my head since i first learned, what i thought i learned...which was actually nothing at all.
Submitted September 14, 2017 at 11:03AM by allinonestock http://ift.tt/2flgVeR
