I've just found out that my mom's 401k invested 100% in Bank of America stock. Basically she works for Bank of America and at some point somebody must have told her that this would be a good idea. Right now she had been waiting for it to go back up from the dip in 2009 to diversify. She has somebody helping her from Merrill Lynch but they cannot tell her what to do they can only let her know what her options are because it is a free service through Bank of America. She has lost $70,000 since February of this year thanks to a slight dip in the stock price. Once I looked into it I realized February of this year was almost the highest that Bank of America stock has been in over a decade, I imagine that would have been the time to diversify.
Given the current circumstances of the market any possible recession, does anybody have any advice on whether she should pull it all and put it into a diversified account? Or wait to see if the stock will go back up by $10 or so before doing that? Or, alternatively, is there anybody who thinks that where it is now, invested solely with Bank of America, is a good investment?
Leave a Reply