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Or when it requires BY LAW an 80-page prospectus to sell a mutual fund or variable product. That's the epitome of full-disclosure, but unless a prospect is going to actually read it, how transparent is it?
You took the words right out of my mouth. Whenever someone talks about transparency, I always think of a prospectus. How many retail mutual fund investors have even opened one, much less read it?
I have a client, an engineer. My joint work partner and I sold him some life insurance, including a VUL and VA. He tried to read the prospectus, but later told us he gave up, he couldn't make heads or tails of it.
The average retail consumer isn't looking for transparency. They want a watch, they don't particularly care how the watch works as long as it works. Only when it breaks do they care.
Present it in terms they can understand and go over what is important. Don't get bogged down in the details they never even bothered to understand.