I own shares in the company I work for through an ESPP. How much is a reasonable amount to invest to remain diversified? What should I do with my shares?

It seems like a good idea to bet on the company you work for. You have faith in the company and expect it to do well, and the shares are offered to you at a discount.

One caution: be mindful of your bias.

Owning shares of a company you work with can evoke an illusion of control and overconfidence. That doesn’t mean it’s a bad idea. We agree it is important to have skin in the game.

However, we encourage you to think carefully about how these shares fit into your financial plan. Contact us or a professional you trust to go over your financial picture to ensure you remain diversified while investing in your employer.