I have company stock as part of my account. What will you do with that?
We don’t recommend having more than 10% of your portfolio invested in company stock. Keep in mind that if you have company stock holdings, we won’t account for those extra equity holdings when we create your custom portfolio. The result is that your portfolio will skew more aggressive than your chosen allocation if you have company stock. We will only manage the portion of your account balance that is not invested in company stock.
However, in some cases your institution may not allow optimization without including the company stock in each transaction. In these cases, if you have less than 10% of your account in company stock, we may need to round your holdings to the nearest whole percent and either buy or sell shares of your company stock. The company stock transaction in this scenario will never be more than 0.499%.
If you have more than 10% of your account in company stock, we will round your holdings down to the nearest whole percent, meaning we will sell your company stock. The company stock transaction in this scenario will never be more than 0.999%.
Our advisors can take care of the process of reducing your company stock for you, should you choose to do so. Just let us know what specific percentage you would like to hold in company stock, and we will take care of it from there.
If you have your future contributions to company stock percentage set above 10%, blooom will lower it to 10% for ongoing contributions and adjust the remaining 90% of your future contribution portfolio accordingly. If you have less than 10% set for future company stock contributions, we’ll leave your company stock future contribution percentage the way it is and adjust the rest.