The War Against Your Credibility

Sue BerginSue Bergin

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.

In case you missed it, here is the excerpt:advice ahead

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%.[1]

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.

Fight back.


[1] The Most Destructive Behavioral Bias, Summer 2012, The Journal of Investing

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