Why are Americans suddenly so passive when managing money?

On the quiet revolution in personal finance in America

It is more beneficial to just ride the market.
(Image credit: REUTERS/Lucas Jackson)

Very quietly, the way that many Americans invest their money is changing. And it's changing in a way that could upend the way Wall Street does business.

When you think of investment, you probably think of a person looking to save, build a retirement fund, or just make a buck on excess cash. They probably hand their money over to a financial firm, which picks and chooses stocks and other financial instruments, looking to get as a good a return as possible. That's the traditional model, called "active" management.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.