Knaub & Company, P.C.

certified public accountants

PO Box 161030, Big Sky, MT 59716

Phone: 406-995-6040

Fax: 406-993-2772


January 2018

January 2018 Q & A

Article Image


I’m a healthy 30-year-old marketing executive with a good income. My advisor says I should consider buying disability income (DI) insurance. Why would I need it when my employer is covered by workers’ compensation?


Workers’ compensation insurance covers medical bills and a portion of missed income due to an injury that is work-related. The reality is that workers’ compensation likely won’t equal lost income, and most injuries that result in lost work time occur outside the workplace. If your employer offers group DI, consider buying it. If you believe you need added protection, talk to a licensed insurance agent about individual DI.


One of my 401(k) plan’s investment options is company stock. I want to maintain a diversified retirement plan portfolio, so how much is too much company stock?


It’s admirable to want to own some of your company, but too much of any one asset type can throw off your allocation. History is littered with employees who owned too much company stock as their firms went out of existence. Thankfully, employees generally are limiting their exposure to this investment. According to the Employee Benefit Research Institute, employees held less than 7% of 401(k) assets in company stock at year-end 2015. That’s down from 19% in 1999. Every retirement investor is different, but you could use the 7% figure as a benchmark.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.