It is often a good idea to invest most or all of your retirement savings in the stock of your employer so that you will demonstrate your loyalty.

Question

Question 43 options:

True

False

Answer 1

False

Investing most or all of your retirement savings in your employer's stock can be risky. While it may show loyalty, it also concentrates your investment in a single company, which can expose you to significant financial risk if the company does poorly. A diversified portfolio is generally a safer approach to retirement savings.