Charles Schwab yesterday issued a press release about individual investors that advisors should leverage. While about 80% of consumers say they are extremely likely to comparison-shop for a car or airline tickets, Schwab says, only 17% of consumers say they are extremely likely to comparispn-shop for bonds.
While the press release was issued by Schwb's retail dvision and may not get much play with RIAs, advisors should be producing blog and social content about this survey for prospects to see.
Schwab says that, because consumers find bonds complicated, they are three times more likely to shop for a BBQ than a bond.
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"Despite their bargain hunter ways, our survey indicates that investors aren’t as likely to search for the best deal when it comes to financial products," says Sshwab. "The contrast is particularly striking when it comes to buying bonds. Fifty-five percent of study respondents say they are extremely likely to shop around for mortgages, 48% and 39% say the same about credit cards and auto insurance, respectively; yet only 17% are extremely likely to shop around for bonds."
Absence of an industry standard for marking up bond prices, investors are left unclear about how much a bond should cost and unsure about how to shop for the best price.
RIAs want to tell clients and prospects about this survey (or buy my client content) because you can help clear up the confusion by teaching clients how to shop for bonds or advising them on bonds.