5 portfolio time bombs

These common mistakes could send your retirement savings up in smoke. Find a better way to divvy up your investment pie.

Too much company stock - solution
Too much company stock - solution
No more than 10 percent of your portfolio should be in any one investment, including the stock of the firm you work for, says Chris Cordaro, chief investment officer for RegentAtlantic Capital, a wealth-management firm.

So give yourself a target and a timetable, start shedding company stock and reallocate the cash into a diversified fund.

Chances are, you can begin unloading employer shares right away. Under a 2006 law, firms that match a 401(k) with company stock must let you sell it once you've worked there for three years.

If you have to wait, keep the rest of your money in funds that don't list your company among their top holdings (to check, go to morningstar.com). And don't compound your risk by buying ETFs or sector funds in your own industry.
Hot performers Solution Too little diversification Solution Ignoring your portfolio Solution Being too conservative Solution Company stock Solution
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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.