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To: wideawake
Anyone who put their life savings in Enron stock instead of diversifying his portfolio is a moron who can only blame himself for his own stupidity.

On behalf of the employees, may I request that you exempt them from the moron designation? They had no choice in the matter as far as their 401k was concerned. The entire employer contribution component was in Enron stock and they couldn't sell it until they were 50 years old even if they left the company. That created an retiremement portfolio oveweighted in Enron whether they liked it or not.

183 posted on 07/05/2006 7:53:52 AM PDT by freespirited (A liberal is a person haunted by fear that someone, somewhere does not require government assistance)
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To: freespirited
They had no choice in the matter as far as their 401k was concerned.

You can put whatever you want in a 401k.

My portfolio is overweighted toward shares of employer as well - it's a form of compensation.

The remedy for this is to sell shares as they vest in order to diversify.

If people had their life savings in the stock these means one of two things: they failed to diversify by selling shares of stock that had vested or they took savings they already had and deliberately overweighted their portfolio toward Enron stock.

Neither was wise.

234 posted on 07/05/2006 8:18:16 AM PDT by wideawake ("The nation which forgets its defenders will itself be forgotten." - Calvin Coolidge)
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