Who’s that Man, Daddy?
You’ve seen those Schwab commercials on TV where the dad explains to his child what his broker does. These ads are promoting a ‘money-back’ guarantee if clients aren’t happy with the advice. I just wrote an article published in Bottom Line Personal today explaining how that guarantee works.
A money-back guarantee might seem like an enticing assurance that a product or service is reliable. But when it comes to choosing an investment firm, it’s not very useful.
Charles Schwab has been offering to refund investment advisory fees when investors are unhappy, and TD Ameritrade has been offering to rebate the fees after two quarters of negative performance.