Last week we talked about the Decrease in Large Public ESOPs. This topic was further discussed in Large employers back away from employee stock plans, but they are still popular with private companies. The article cites "stock drop" lawsuits and the lack of diversification as reasons for the drop-off, and cites a similar trend with 401(k) Plans that hold employer stock:

"In that sense, the move by big companies away from ESOPs is a parallel to the steady decline in recent years of the amount of company stock held in 401(k) plans. A recent study by the Employee Benefit Research Institute and the Investment Company Institute showed that 401(k) plan allocations to company stock fell to 11% in 2006, from a peak of 18.6% in 1998."

The article contrasts this trend to the rise in closely held ESOPs:

"Data show a steady rise in the number of ESOPs in closely held companies in the last decade," he said. "There's good reason to expect that growth will continue and even accelerate in the next decade." In privately held companies, ESOPs can provide a way for an owner to sell his or her stake in the company, Mr. Rosen said, and the Baby Boomers are at a point in their careers when many may be looking to make that transition."

Wealth Management Checklist

Tune Up for High-Performance Wealth is a checklist for individuals and business owners to "evaluate their wealth management initiatives to make sure they have the appropriate portfolio for their age and investment goals", and contains the following:

• "Maximize retirement plan contributions"
  
• "Invest in the IRA that's right for you"
  
• "Rebalance portfolios at least once a year"
  
• "Make year-round tax planning a priority"
  
• "Have a solid estate planning strategy"
  
• "Proactively manage debt"
  
• "Consider charitable giving"
  
• "Give to children and grandchildren"