Putting all your eggs into one basket
My brother-in-law is managing my 93-yr-old mother-in-laws wealth which is about 525K. My wife is the beneficiary of 1/4 of the estate.
My brother-in-law has 500K of the money invested in mutual funds with Edward Jones. The rest is in low interest bank accounts.
My question is: Isn’t this unnecessarily risky? Shouldn’t he at least split the money between two different brokerage houses in the unlikely but possible event the Jones goes Bernie Madoff? How should I explain to him that he should not put all our eggs in one basket.
Thanks in advance for the responses. You don’t have to spare anyone’s feelings.