401(K)s and the Enron Mess: Your retirement plan might be every bit as risky as Enron's. What companies should do about it.(Brief Article)

Byline: Jane Bryant Quinn

Now is the time for congress to clean up the mess in 401(k)s. I'm speaking specifically of the plans that offer you company stock. You tend to load up on this stock, especially when employers use it to match part or all of the money you yourself put in. At some gut level, you think of your company stock as safe.

But you might as well be holding a lottery ticket. Some stocks do gloriously well while others could wipe you out. A 401(k) should diversify. Why would anyone call "one stock" plans a good idea?

The Enron affair should give you night sweats. The company matched workers' 401(k) contributions with company stock. But no one could sell it until the age of 50.The rah-rah workplace and high-flying stock price lured people into investing even more. Enron shares accounted for almost 60 percent of the total plan.

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