Quote:
Originally Posted by bizaro86
If you made people build their own bond ETF if they wanted a fixed income investment a few people would know more about bonds than they otherwise would have, and a bunch more would say forget it and not buy a fixed income investment even if it was appropriate.
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People know almost nothing about bonds and fixed income. I'm not convinced many
advisors could construct a proper bond portfolio comprised of single securities, so to expect that people, in general, could do that is just hilarious. I know you know about these things, but people like you and me are not average in any respect.
Truthfully, bonds are way underappreciated as an investment, and that includes advisors. Most advisors do not buy single fixed-income securities, and I would guess that most never have. I would imagine that on platforms like Questrade, almost none of the transactions are bonds, save for the odd bond fund or ETF. I think those are the minority, though, and most people are purely trading stocks (and crypto, now).
This is a bit of a tangent, but we know that people's financial literacy is poor for the most part. And yet, we want to encourage people to manage their own money. Then we wonder why people are at retirement age with unrealistic expectations and insufficient money to support themselves.