<prompt> Human: Currently, I am putting 6 of my pay into my 401k, with an employer match of 6. My employer also offers an Employee Purchasing Stock Program you get to purchase stock at a 15 discount every 6 months. My contribution to that is 5 of my total pay. Ive done this for a year now and currently have 29 shares valued around 3,600. My question is, is it better to diversify my holdings, or should I increase my 401k contribution to 12?  <response>: My question is, is it better to diversify my holdings, or should I increase my 401k contribution to 12?Kind of a sidebar, but... Putting more money into the stock of your employer is pretty much the opposite of diversifying. Youre tying your current and future financial success to one company. This is why someone asked how much of your portfolio the 3,600 represents. Like most of the commenters, I would be more apt to do this if there isnt a holding period and you can just sell immediately. In that case, its just a little free money as income. Holding the shares long term is less of a sure thing, especially if youre highly concentrated in your companys stock. 