60% of 401(k) investors in their 20s and 30s own little or no stock according to a 2009 survey from EBRI.  This is exactly opposite of what they should be doing! They need to take on more risk. Young investors won’t tap their retirment funds for many decades.  They should have most of their capital invested in stocks.

30% of 401(k) investors over 40 have more than 20% of their money invested in company stock.  This is risky behavior because stock porfolios should be broadly diversified across many stocks, not just one.  Also, you don’t want extra exposure to your employer’s stock because you already have plenty of financial exposure since they pay your salary.