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Why Financial Advisors Favor Bond Funds Over CDs

Monday, May 6, 2013 - 7:39 PM
From The Finance Buff:

    "CDs are a better deal than bond funds nowadays but investors
     often don’t realize it. You would think financial advisors
     would be all over it when they are living and breathing in
     the investment world day in and day out. However, besides
     Allan Roth and Larry Swedroe, I haven’t seen many financial
     advisors recommend CDs over bond funds. Do financial advisors
     have the same blind spots as investors, not realizing that
     time has changed and that the best CDs are better than bond
     funds for their clients?  ...

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4
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,372
1. Tuesday, May 7, 2013 - 5:38 PM
Reason #1: Everybody knows CD, no expert help is needed.

Reason #2: There are more fees involved with Bond Funds than CDs. 
3
51hh51hh1,461 posts since
Jan 16, 2010
Rep Points: 6,351
2. Tuesday, May 7, 2013 - 10:13 PM
Reason #3:  Maybe because many of the financial advisors have complete details than the incomplete details presented on "The Finance Buff" ... :-)
1
ytytytytytytytyt158 posts since
Jan 28, 2013
Rep Points: 623
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