1. What is the concern highlighted in the article and what step(s) should be takeb to overcome it?

2. How might you to determine how diversified your investment/savings portfolio is?

Beyond GE: U.S. workers own too much company stock in retirement plans (The opinions expressed here are those of the author, a columnist for Reuters.) By Mark Miller CHICAGO, July 12 (Reuters) - The decision marked the end of an era: last month, the keepers of the Dow Jones Industrial Average removed General Electric Co, one of the original stocks included in the index when it was created in 1896. The once-mighty GE had become the sixth-smallest member of the 30-component Dow by market value and carried the index's lowest stock price. The move by S&P Dow Jones Indices reflected the decline of an American industrial icon. But the company's plunging stock highlights a problem that refuses to go away: too much concentration of employer stock in workplace retirement plans. More than one-third of GE 401(k) plan assets were held in the company's own shares in 2016, federal filings show. Pre Just 15 years ago, GE was the world's most valuable public company. But it has struggled in several of its key industrial markets and suffered losses in the financial services business during the global financial meltdown of 2008. GE stock has fallen nearly 80 percent from highs in 2000, serving up a reminder of the risk of holding your employer's stock in a retirement account. Changes in federal law have encouraged retirement plans to move away from company stock ownership, and a spate of lawsuits also have helped convince many plan sponsors to reduce or eliminate the practice. Data from Vanguard points to an encouraging trend. In 2017, among all account-holders in defined contribution plans administered by the mutual fund giant, 90 percent had no investments in their employer's shares, either because it was not offered (76 percent) or they chose not to invest in it (14 percent). Five percent had holdings ranging from 1 percent to 20 percent of their plan assets, and 5 percent had concentrated employee stock positions exceeding 20 percent. The industries still most likely to offer company stock were agriculture/mining and construction (13 percent offered), Vanguard data shows. THE ENRON EFFECT The GE story belies a sharp improvement in diversification by many 401(k) plans over the past decade. As recently as 2007, nearly 25 percent of Vanguard administered plans had employer stock concentration levels higher than 20 percent. The more recent improvement stems in part from the spectacular 2001 collapse of Enron Corp, which blew away the life savings of thousands of employees holding the company's stock. The ensuing Pension Protection Act of 2006 required defined contribution plan sponsors to allow participants to diversify holdings away from employer shares, and to notify them of their rights in this area. Most experts say employee retirement portfolios should not hold more than 10 or 15 percent of their employer's stock. "Since Enron, many employers have decided this isn't a good thing for employees - that's the good news," said Robert Pozen, a senior lecturer at the MIT Sloan School of Management, who recently reviewed federal filings of large retirement plans. (https://brook.gs/2m5dwUv) "Unfortunately, quite a few companies have continued to not only allow this but essentially encourage it, because they make matching contributions with their own stock as a way to conserve cash," he said. (GE employees are not required to take matching contributions in company stock, a GE spokeswoman said.) Pozen has no problem with employee stock ownership outside a retirement plan, or stock options. But most employees should hold broadly diversified retirement portfolios, he said. Morningstar research has Ser ark dse Fro of k