Smart Money, Dumb Idea: Bad Bets by Financial Pros 

By Ben Steverman - 2013-10-22T17:22:03Z

Photograph by Jan Stromme/Getty Images

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Nan Morrison: Company Stock Collapse

In my first job out of business school, I took full advantage of the 401(k) plan. The only thing was that at this company, if you were under 50, you only had one choice for your investments – company stock. When I left, I had complete freedom as to how to invest that money, but I kept it in company stock. It was a dividend-paying stock, an insurance company. One day they announced there was a management issue at the company and the stock price dropped from $50-ish to $25-ish in a couple hours. So there went the value of that 401(k) plan, down by half in less than one day. What an idiot I was. I had six figures in there. The biggest lesson from that: When you have the opportunity to diversify, diversify.

Nan Morrison is chief executive officer of the Council for Economic Education, which in May released new national standards for teaching financial literacy in schools.

Report: The Fight Over Financial Literacy