Ask Terry Questions Investing all assets with the same investment group

Investing all assets with the same investment group

By Terry Savage on February 12, 2015 | Investments

Hi Terry,
My question to you is, do believe its wise to invest all of our assets with the same investment group? Or would it be wiser to split our savings and invest with more than one group.

Terry Says:  That all depends on the “kind” of investments you’re talking about!  If you’re talking about mutual funds/stocks, then no problem with, for example, having it all at a place like Fidelity or Vanguard.  You have $500,000 SIPC insurance on investment accounts — but that’s not a concern at a huge and well established firm like those I mentioned.

Now, if you are using an investment advisor for a larger amount, the advisor should not have control of the funds; instead they are secured at the mutual fund or brokerage company up to the SIPC limits. (This is insurance against FRAUD, not against bad investment decisions!)

And if you are simply working with a stock broker, you might want to have multiple brokers giving you their advice — just to get a diversity of investment opinions.

So, bottom line, this all depends on the type of investments you have, the amount of money involved, and whether you are doing this on your own, or working with a Certified Financial Planner.  Perhaps you might want to write back with more specifics.



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