8. Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter.
In a bear market, it's tough to find a safe-haven – a lot of the stocks in your portfolio will be sinking too. But don't compound the risk by holding too much in any one stock.
The most recent dramatic example of just how serious this "specific-stock" risk can be is Enron, which imploded after its executives allegedly engaged in various acts of malfeasance. But a company with perfectly honest management might fall on hard times too.
And if it's your employer's stock, you're in an even worse position – not only will your portfolio be decimated, but your job could be at risk too.
You don't have to spend a lot of time to put your financial house in order. Money Magazine shows you the easy way. (more)
