Fixing Irrationality

mucgoo

My parents have around £40k in Standard Life shares out of a total wealth of ~£200k + £500k home equity.
On the suggestion this is a rather dangerous position the response is they've done well and they'll keep doing well with no concept of the pitfalls of lack of diversification or the folly of that statement.
Any suggestion to make them see reason.

benalder284

Mention RBS a lot?

Thrugelmir

What's the current market view of SL?

srcandas

mucgoo wrote: »

Any suggestion to make them see reason.

It's only money, your parents are happy (I assume) and have accrued a reasonably wealthy position.

OK they could lose a bit of money if Standard Life go belly up but compared to the family relationship failure what does that matter?

Think what will happen if their £40k gets moved on your advice into bad performing investments and Standard Life goes from strength to strength????;)

Leave well alone would be my advice. But each to their own :beer:

BLB53

Yes, everyone is entitled to do whatever they want with their own money - you have expressed your concern, they are happy to continue - end of story.

bigfreddiel

mucgoo wrote: »

My parents have around £40k in Standard Life shares out of a total wealth of ~£200k + £500k home equity.
On the suggestion this is a rather dangerous position the response is they've done well and they'll keep doing well with no concept of the pitfalls of lack of diversification or the folly of that statement.
Any suggestion to make them see reason.

can we all assume your wealth and investments are in a better than your parents? Perhaps you could tell us all please?

see ya!

fj

atush

Mention RBS, HBOS, Llyods and other bank shares. Mention 2 that were allowed to fail (ie NR and B&B).

Mention threads here or elsewhere whne singel shares are mentioned to be high risk.

Best, search back a week or two where husband and wife (you are wife here, parents are Hubby) who being told "you worked for x, we have all these shares in x, we should sell them and take our (huge) profit. wherebym, th Hubby said what your parentds did. Then it wnt tits up and 17K turned into a few hundred quid.

Your parents I feel dont understand the risk. I agree, should you say to put the money in X, and they do and it loses, they will be all over you. I say, dont rec an actual investment, just an idea of direction and send them elsewhere for exact advice.

jamesd

25% in one investment is pretty high but it's not something worth a major financial argument over it.