While you were enjoying some quiet family time on Sunday morning, America’s most read magazine was advising its readership to dump you.
In an article “How to save $1,000 this year,” Parade magazine tells its 33 million readership that the average investor could save $750 if they moved to a self-directed IRA.
Shed Investment Fees
It’s one of the quickest ways to save …. Consider rolling over 401(k) assets from old jobs into a self-directed IRA. Since the average 401(k) is $75,0000 saving 1 percent makes sense. Potential Savings: $750 per year.
The article fails to mention is that the average U.S. individual stock investor doesn’t fare very well. In fact, they typically get significant lower returns than the S&P. Over a recent five-year period, the average U.S. investor got an annual return of just 1.9%, while the S&P 500 returned 8.4%.
The do-it-yourself investment management trend is gaining momentum in the media. This is just the latest example. Know that there is a war being waged against your credibility and the value you bring to your relationships.
 The Most Destructive Behavioral Bias, Summer 2012, The Journal of Investing