Is this the fastest way for us to lose 50-100k?

Question

Not sure if I have it in me to invest in another short-term rental as we already manage six of them.

We were thinking about just popping some of this cash into a short-term CD or a high-yield savings for the time being.
our financial advisor of course is itching for us to invest it. This is what he just told me. Would love some thoughts.

Here is the information regarding the investments I would recommend. Each of these investments has 100% stock exposure and since they do you'd need to give the investment money manager atleast three years. Short-term risk always exists using the stock market, but if you provide time the profits are always significantly higher than bonds or bank investments like CD's.
I'd like to combine the Dana Unconstrained SMA with the Genter Capital SMA. I've attached the fact sheets for both. The Dana Unconstrained SMA is a big performer averaging over 20% for the past 8 years. The Genter Capital is a more mild stock portfolio that has averaged 10% for the past 20 years.
There are no sales charges to purchase these investments. An annual fee is collected by the money manager of 1.40% on the balance in the account and I get compensated a portion of this fee. The returns I mentioned above are after this fee has been collected.
Let me know what questions you might have.

Kevin Sobilo · Answer

@Kim Durst, a few thoughts:

1. Is your financial advisor your "fiduciary"? A fiduciary is someone you hire who puts your interests first. Like hiring a lawyer. However, many advisors are not that and make their money by selling you investment products.

It sounds like your financial advisor is NOT a fiduciary, in that they make their money selling you things.

So, they are in essence like a Used Car Salesman to you. They make their money selling you on something plain and simple. Their advice like a car salesman needs to be taken with a BIG grain of salt.

2. One thing I take issue with is "always". There is no such thing as "always" with investments. For example people who invested in Sears 30 years ago made LESS money than people who stuck their money under their pillow.

3. Yes, over time the broader stock market, index funds, etc have on average exceeded fixed income products like bonds, CDs etc but over WHAT time period. They are saying 3 years and that is not long enough to guarantee anything.

4. With most investments, the choice is not 100% about what MIGHT make the most money, otherwise you could "invest" in lottery tickets because they have the greatest potential ROI.

5. Many/most investment decisions begin with a self assessment. Where are you in life, what are your goals with this money and why.

For example, someone investing for retirement in 401k/IRA might well have substantial exposure to stocks in their 20s, 30s, 40s knowing they have time on their side to make a good return as mentioned in #3, but as the same person gets to retirement SECURITY is more important than ROI and they may well reduce that exposure knowing that having a secure retirement is more important than making the most return.

6. Stocks are in what many consider bubble territory, just another factor to consider.

7. Nothing wrong with a CD or HYSA especially if you believe you will find a better use for the money in the near/mid term future. These are not where you build real wealth, but they have their place in your savings plan and as a temporary storage vehicle when you don't have a place to productively deploy capital.