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Hard for your money and here on the Willis report we're making sure you get the most for -- A new study by Charles Schwab finds -- very few investors comparison shopper bonds despite.
Potential savings you're gonna want to hear about this joining me now with ways to get the most for your money.
-- Crawford senior vice president Charles Schwab Peter thanks for coming on the show this study.
Was really pretty shocking when you get right down -- it tell us about your findings.
And they used to comparison shop being and making sure they're getting the best deal particularly in this it challenging economy.
That's what's remarkable about it is that we found there three times more likely to shop around for a 500 dollar barbecue.
And they are to shop around for the best deal on bonds which may cost them thousands of dollars and and I think what -- -- of the more amazing -- you think about this current low interest rate environment.
Worth investors looking around under every rock for trying to find a little bit a yield a threat saving a few percentage points on bonds can make a big difference on.
On the yields you have to get the very best price that's the bottom line -- because at the end of the day the yields are so tiny -- barely getting anything at all you've got to get the best price.
Peter you know we complain on the show all the time about the and I uneven playing field when it comes to buying stocks but boy you look at bonds it's even worse.
It's such an opaque market when you're talking about buying individual -- as opposed to bond funds that's an entirely different category -- buying individual bonds.
The markets can be anything tell us why that exit why is that a problem why is it happening.
Yeah that's a great question so I'm -- like the equity markets which -- and as you know our exchange market you buy a share of apple and and you're gonna pay a fair price for that -- your apple give or take a few pennies.
The bond market isn't over the counter market -- which means that every dealer is free to charge whatever they wind.
For that -- the under some certain broad parameters.
-- of those markets can vary dramatically from one dealer to the next they can be as low as a dollar for example you buy that -- Schwab.
Some dealers will charge 203040.
Dollars on on a bond which -- equates to three or four percentage points and when you consider that a bonds today -- really maybe two and a half percent I think on -- corporate or -- five your corporate Muni bond.
I mean you're paying your broker a whole year or more of interest just -- I want.
OK -- wanted pull some more from your survey for a second here.
So if I'm the average consumer and buying a car 80% of us comparison shop -- cars.
77% of us comparison shop on airline tickets simply -- percent of this comparison shop on HDTVs but you tell us -- results.
We start looking at financial goods like mortgages.
What are people doing.
So you see mortgage is a little bit you know that they're they're sort of in the range of of -- other consumer products.
That he -- here's how has Harrison -- -- -- credit cards little bit lower and then.
And then at the bottom of the list there are bonds and and I think that just goes to if you if you're gonna go out by HDTV -- as I actually did a couple months ago you go to do all you type in the model number.
Boom they've got 45 different choices you can -- like the lowest price.
There's no analog there's no Google for that -- -- -- until recently there's been no Google for that for the bond market for example as it is -- is more challenging for consumers.
But I would say that's also changing now -- well.
And you guys have a product out there right now the -- that you're talking about.
Two -- Consumers investors to get a better view into the bond market tell us quickly about that.
Cheryl we have a -- Schwab on source which.
Allow is essentially is is like a Google we if you come to Schwab we can -- or you want to show us a bond the perhaps you think about buying somewhere else.
We can actually look out on the market and do that comparison shopping for you we can scour the market try to find all the dealers that might have access -- bond.
And to make sure that you're getting the best price on on the respond to your purchasing.
I like tools tools work thank you sir Peter thanks for coming not interesting story I think we'll probably have to follow up on some of -- thank you.
Thanks very much --
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