Don't Get Overinvested in Your Employer

This is just a friendly word of caution about putting all of your eggs in one basket. I’m over-invested in one place right now, and it’s my own employer.


Current

I started working at General Electric (GE) a little over a year ago. I wanted to have stock in my company, so I started buying GE shares on Robinhood. As you might have seen, GE stock is doing terribly, and I’ve lost over $1,000 on my shares so far. My first share was bought for $32. Shares dropped into the $12 range recently. I also put a 5% of my 401k contributions into a GE stock fund. That small portion of my contribution is down over 30%! And to make my reliance on the General even worse, GE pays my paycheck. GE is not doing so hot right now, with occasional layoffs, selling businesses, cost cutting methods, reduced travel, etc. My division, GE Transportation, is for sale, though we’re doing pretty well. I got my first bonus this year, and a better raise than I ever got at previous employers!


Looking Ahead

Though my division is in talks of being sold, I will likely retain my job since I’m good at it, it saves the company a ton of money, and do it for a low price compared to others with the same skills. However, in the next few years, my paycheck will likely not come from GE. Instead, it will come from whatever company purchases the Transportation division. I think that GE stock will be a great long term investment. I won’t sell my shares for many, many years, and they will continue to pay dividends, even though there was a recent major dividend slash. GE stock is at a great price right now, and I’m happy to be buying more shares and accumulating them in my 401k as well. The upside is a few years out, but I’ll be patient.


Anyways, just a small word of advice on not to get too invested in the success of your employer! Do as I say, not as I do.

Written on April 16, 2018

Other Posts

How to Drive Cool Cars on a Budget [Updated November 2019] | cars | November 27, 2019

Honda S2000 LED Swap | cars | November 12, 2019

Lexus GX470 Running Board Removal | cars | November 12, 2019

Lexus GX470 Rear Door Table | cars | November 12, 2019

Lexus GX470 Tinting the Fog Lights | cars | October 25, 2019

Lexus GX470 Ditch Lights Install | cars | October 21, 2019

Lexus GX470 Blackout All Chrome | cars | October 16, 2019

Lexus GX470 Change Heated Seat Bulbs | cars | October 16, 2019

Lexus GX470 Radar Detector Hardwire | cars | October 7, 2019

Lexus GX470 Custom Webbing Dog Divider | cars | August 9, 2019

Format an Audio USB for a C7 Corvette from a Mac | cars | July 29, 2019

How To Save Money on Large Purchases | finance | July 18, 2019

Recipe - Keto Chocolate Milkshake | etc | July 12, 2019

Pros and Cons of Working From Home | etc | July 10, 2019

Honeymoon in Costa Rica | etc | June 18, 2019

Keto Recipe Collection | etc | June 17, 2019

Plasti Dip GX470 Grill | cars | May 7, 2019

My Georgia Tech OMSCS Experience So Far | tech | April 22, 2019

GX470 Android Headunit and Backup Camera Install | cars | March 7, 2019

My Turo Claim Horror Story | cars | February 21, 2019

New Lexus Key | cars | February 7, 2019

Cleaning Headlights and Other Improvements on the Lexus | cars | January 28, 2019

Lexus GX470 Exterior Lights | cars | January 15, 2019

Final Bedroom Remodel | renovations | January 4, 2019

How to Drive Cool Cars on a Budget [Updated January 2019] | cars | January 3, 2019

2019 Goals | finance | January 2, 2019

2018 Goals Revisited | finance | January 1, 2019

Lexus GX470 LED Interior Lights | cars | December 13, 2018

Front Door Remodel | renovations | October 17, 2018

Recipe - Keto Cookie Dough Balls | etc | September 13, 2018

Using Rakuten for More Cash Back | finance | September 12, 2018

Vanity Drains Replaced with Pop Up Drains | renovations | September 10, 2018

Matching Your Net Worth with Your Lifetime Earnings | finance | August 10, 2018

Simple Guide to Raising Your Credit Score | finance | July 26, 2018

Recipe - Pepper Steak | etc | July 12, 2018

Recipe - Shrimp and Sausage Cajun Bowl | etc | July 12, 2018

Cost of a Dog, Itemized | finance | June 25, 2018

Citrus Paint Colors | renovations | June 25, 2018

Optimize Everything | finance | May 25, 2018

Calculating My Savings Rate | finance | May 22, 2018

Hallway Bookshelves | renovations | May 22, 2018

Fiat 500 Steering Column Fix | cars | May 21, 2018

Pool Enclosure Replacement | renovations | May 16, 2018

$500 Weekend Bathroom Remodel | renovations | April 30, 2018

2016 Corvette Grill Mod | cars | April 19, 2018

High Interest Checking Account | finance | April 18, 2018

Don't Get Overinvested in Your Employer | finance | April 16, 2018

Robinhood - Buying Stocks with no Fees | finance | April 12, 2018

rskelton.com Tech Stack Details | tech | April 11, 2018

Personal Capital - Finance Aggregator | finance | April 4, 2018

Rent Other Peoples Cars with Turo | cars | April 3, 2018