I was earning 14% on a real estate investment, but all the financial advisers I interviewed wanted me to sell and invest in stocks instead. What gives?

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Reader email: I interviewed many advisors for a year from standalone people to those at big firms. All, without exception, wanted to sell the real estate and convert it to stocks . Since my real estate holdings were medical office buildings kicking out 14% a month before capital gains on the buildings, that made zero sense to me. I’m sure there are people out there who actually specialize in managing these kinds of portfolios but I didn’t find one.

That compensation model could have made it tough for you to evaluate what was going on.

And the advisers could have been giving that advice because they thought it savvy for other reasons: “A prudent financial professional may have seen you as being over-invested in real estate, lacking portfolio diversification and recommended increased exposure to stocks as a way to diversify without sacrificing long-term returns,” says McBride.

 

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Allbirds’ stock tanks 14% after company’s revenue drops more than 20%Claudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter ClaudiaAssisMW.
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