Workers with company stock might have too much risk in their portfolio

The survey, conducted in July, canvassed 1,000 people ages 25 to 70 who either participate in an employee stock purchase plan (which lets you buy company shares at a discounted rate) or are awarded stock options (the right to purchase later at a set price) as part of their compensation. The average value of the company stock held this way is just shy of $99,000, according to the study.

Schwab generally recommends that shares in your own employer make up no more than 10 percent to 20 percent of your portfolio, although some advisors suggest an even lower limit of 5 percent to 10 percent.

Millennials hold the most in company stock — 42 percent — relative to their overall net worth, compared with 24 percent for Generation X and 19 percent among baby boomers, according to the study.

While the amount you have invested in your company could be intentional, it’s important to understand how a concentrated share can affect your overall investment portfolio.

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