7 hostages reported dead in 'final assault' on Algerian refinery









CAIRO — Algerian troops raided a remote natural gas refinery Saturday, killing 11 Islamic militants but not before extremists executed seven hostages who for days had been trapped in a deepening international crisis, according to media reports.


Algerian state media described the army mission as the “final assault” to end a hostage ordeal that began in the predawn Wednesday at a gas compound on the Algerian-Libyan border. It was not clear if the hostages killed were Algerians or foreigners.


"It is over now, the assault is over, and the military are inside the plant clearing it of mines," a local source familiar with the operation told Reuters.





The fate of as many as 30 foreign hostages, including an estimated seven Americans, remained unknown. Algerian forces discovered 15 burned bodies as they swept through the compound Saturday to rout heavily armed militants. The militants threatened to blow up the facility and a number of hostages were reported earlier to have been forced to wear explosive belts.  


The Algerian government had refused to negotiate with the extremists, who were linked to Al Qaeda in the Islamic Maghreb and appear to include Algerians, Libyans, Egyptians and at least one commander from Niger.


Algeria’s state-run media earlier reported that 12 refinery workers, including Algerians and foreigners, had been killed since a government operation to retake the plant began Thursday. Unconfirmed media reports suggested that as many as 35 foreign captives may have been killed, including some struck by gunfire from the Algerian military.


The militants, some dressed in fatigues, were armed with machine guns and rocket launchers. The compound is encircled by army tanks, troops and special forces. A Mauritanian news agency that has been in contact with the extremists said the captors were holding two American, three Belgians, one Japanese and one Briton.


The Algerian government on Friday said 573 Algerians and nearly 100 of an estimated 132 foreign hostages had been freed or had escaped. But the chaotic scene at the gas compound at In Amenas has frustrated international officials who complained they were not consulted about the Algerian military’s operations at the plant.   


The natural gas refinery at In Amenas is also jointly operated by BP; Statoil, a Norwegian firm; and Sonatrach, the Algerian national oil company.


ALSO:


Bolshoi artistic director attacked with acid


Pentagon planning to ferry more French troops, gear to Mali


Algeria: Accounts emerge as nearly 100 foreigners reported freed


jeffrey.fleishman@latimes.com





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Wired Science Space Photo of the Day: Sunset on Mars


On May 19th, 2005, NASA's Mars Exploration Rover Spirit captured this stunning view as the Sun sank below the rim of Gusev crater on Mars. This Panoramic Camera (Pancam) mosaic was taken around 6:07 in the evening of the rover's 489th martian day, or sol. Spirit was commanded to stay awake briefly after sending that sol's data to the Mars Odyssey orbiter just before sunset. This small panorama of the western sky was obtained using Pancam's 750-nanometer, 530-nanometer and 430-nanometer color filters. This filter combination allows false color images to be generated that are similar to what a human would see, but with the colors slightly exaggerated. In this image, the bluish glow in the sky above the Sun would be visible to us if we were there, but an artifact of the Pancam's infrared imaging capabilities is that with this filter combination the redness of the sky farther from the sunset is exaggerated compared to the daytime colors of the martian sky. Because Mars is farther from the Sun than the Earth is, the Sun appears only about two-thirds the size that it appears in a sunset seen from the Earth. The terrain in the foreground is the rock outcrop "Jibsheet", a feature that Spirit has been investigating for several weeks (rover tracks are dimly visible leading up to Jibsheet). The floor of Gusev crater is visible in the distance, and the Sun is setting behind the wall of Gusev some 80 km (50 miles) in the distance.


This mosaic is yet another example from MER of a beautiful, sublime martian scene that also captures some important scientific information. Specifically, sunset and twilight images are occasionally acquired by the science team to determine how high into the atmosphere the martian dust extends, and to look for dust or ice clouds. Other images have shown that the twilight glow remains visible, but increasingly fainter, for up to two hours before sunrise or after sunset. The long martian twilight (compared to Earth's) is caused by sunlight scattered around to the night side of the planet by abundant high altitude dust. Similar long twilights or extra-colorful sunrises and sunsets sometimes occur on Earth when tiny dust grains that are erupted from powerful volcanoes scatter light high in the atmosphere.


Image: NASA/JPL/Texas A&M/Cornell [high-resolution]


Caption: NASA/JPL/Texas A&M/Cornell

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AP Source: Lady Gaga to perform at inaugural ball






WASHINGTON (AP) — Watch out Beyonce (bee-AHN’-say) and Katy Perry. There’s another diva set to perform during the inauguration festivities — Lady Gaga.


A person familiar with the inauguration tells The Associated Press that the pop star will perform at Tuesday’s ball for White House staffers. The source spoke on condition of anonymity because that person wasn’t authorized to publicly reveal the information.






The staff ball is typically a private affair. During the last inauguration festivities, Jay-Z reportedly performed at it.


According to one attendee, Jay-Z rapped a riff on one of his hit songs, “99 Problems but George Bush Ain’t One,” to the delight of the throngs of young staffers who worked to elect Obama in 2008.


Entertainment News Headlines – Yahoo! News





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Personal Health: That Loving Feeling Takes a Lot of Work

When people fall in love and decide to marry, the expectation is nearly always that love and marriage and the happiness they bring will last; as the vows say, till death do us part. Only the most cynical among us would think, walking down the aisle, that if things don’t work out, “We can always split.”

But the divorce rate in the United States is half the marriage rate, and that does not bode well for this cherished institution.

While some divorces are clearly justified by physical or emotional abuse, intolerable infidelity, addictive behavior or irreconcilable incompatibility, experts say many severed marriages seem to have just withered and died from a lack of effort to keep the embers of love alive.


Jane Brody speaks about love and marriage.



I say “embers” because the flame of love — the feelings that prompt people to forget all their troubles and fly down the street with wings on their feet — does not last very long, and cannot if lovers are ever to get anything done. The passion ignited by a new love inevitably cools and must mature into the caring, compassion and companionship that can sustain a long-lasting relationship.

Studies by Richard E. Lucas and colleagues at Michigan State University have shown that the happiness boost that occurs with marriage lasts only about two years, after which people revert to their former levels of happiness — or unhappiness.

Infatuation and passion have even shorter life spans, and must evolve into “companionate love, composed more of deep affection, connection and liking,” according to Sonja Lyubomirsky, a professor of psychology at the University of California, Riverside.

In her new book, “The Myths of Happiness,” Dr. Lyubomirsky describes a slew of research-tested actions and words that can do wonders to keep love alive.

She points out that the natural human tendency to become “habituated” to positive circumstances — to get so used to things that make us feel good that they no longer do — can be the death knell of marital happiness. Psychologists call it “hedonic adaptation”: things that thrill us tend to be short-lived.

So Dr. Lyubomirsky’s first suggestion is to adopt measures to avert, or at least slow down, the habituation that can lead to boredom and marital dissatisfaction. While her methods may seem obvious, many married couples forget to put them into practice.

Building Companionship

Steps to slow, prevent or counteract hedonic adaptation and rescue a so-so marriage should be taken long before the union is in trouble, Dr. Lyubomirsky urges. Her recommended strategies include making time to be together and talk, truly listening to each other, and expressing admiration and affection.

Dr. Lyubomirsky emphasizes “the importance of appreciation”: count your blessings and resist taking a spouse for granted. Routinely remind yourself and your partner of what you appreciate about the person and the marriage.

Also important is variety, which is innately stimulating and rewarding and “critical if we want to stave off adaptation,” the psychologist writes. Mix things up, be spontaneous, change how you do things with your partner to keep your relationship “fresh, meaningful and positive.”

Novelty is a powerful aphrodisiac that can also enhance the pleasures of marital sex. But Dr. Lyubomirsky admits that “science has uncovered precious little about how to sustain passionate love.” She likens its decline to growing up or growing old, “simply part of being human.”

Variety goes hand in hand with another tip: surprise. With time, partners tend to get to know each other all too well, and they can fall into routines that become stultifying. Shake it up. Try new activities, new places, new friends. Learn new skills together.

Although I’ve been a “water bug” my whole life, my husband could swim only as far as he could hold his breath. We were able to enjoy the water together when we both learned to kayak.

“A pat on the back, a squeeze of the hand, a hug, an arm around the shoulder — the science of touch suggests that it can save a so-so marriage,” Dr. Lyubomirsky writes. “Introducing more (nonsexual) touching and affection on a daily basis will go a long way in rekindling the warmth and tenderness.”

She suggests “increasing the amount of physical contact in your relationship by a set amount each week” within the comfort level of the spouses’ personalities, backgrounds and openness to nonsexual touch.

Positive Energy

A long-married friend recently told me that her husband said he missed being touched and hugged. And she wondered what the two of them would talk about when they became empty-nesters. Now is the time, dear friend, to work on a more mutually rewarding relationship if you want your marriage to last.

Support your partner’s values, goals and dreams, and greet his or her good news with interest and delight. My husband’s passion lay in writing for the musical theater. When his day job moved to a different city, I suggested that rather than looking for a new one, he pursue his dream. It never became monetarily rewarding, but his vocation fulfilled him and thrilled me. He left a legacy of marvelous lyrics for more than a dozen shows.

Even a marriage that has been marred by negative, angry or hurtful remarks can often be rescued by filling the home with words and actions that elicit positive emotions, psychology research has shown.

According to studies by Barbara L. Fredrickson, a social psychologist and professor at the University of North Carolina at Chapel Hill, a flourishing relationship needs three times as many positive emotions as negative ones. In her forthcoming book, “Love 2.0,” Dr. Fredrickson says that cultivating positive energy everyday “motivates us to reach out for a hug more often or share and inspiring or silly idea or image.”

Dr. Lyubomirsky reports that happily married couples average five positive verbal and emotional expressions toward one another for every negative expression, but “very unhappy couples display ratios of less than one to one.”

To help get your relationship on a happier track, the psychologist suggests keeping a diary of positive and negative events that occur between you and your partner, and striving to increase the ratio of positive to negative.

She suggests asking yourself each morning, “What can I do for five minutes today to make my partner’s life better?” The simplest acts, like sharing an amusing event, smiling, or being playful, can enhance marital happiness.


This post has been revised to reflect the following correction:

Correction: January 18, 2013

The Personal Health column on Tuesday, about making marriages last, misspelled the given name of a professor of psychology at the University of California, Riverside, who studies happiness. She is Sonja Lyubomirsky, not Sonya.

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Corner Office: Kon Leong of ZL Technologies, on Encouraging Creativity





This interview with Kon Leong, co-founder, president and chief executive of ZL Technologies, an e-mail and file archiving company, was conducted and condensed by Adam Bryant.




Q. Tell me about some important leadership lessons you’ve learned.


A. One of my early jobs was selling computer hardware. What I learned about selling was probably more valuable than my M.B.A. I had seen selling as a process just about logic. Then I realized that has nothing to do with it.


Q. What was the insight?


A. You have to present your story in their context, not yours. They don’t really care if you’re standing on top of a robot and quoting equations. If they’re in the deep part of the forest, you’ve got to talk the language of the deep forest. Salesmanship is more like a language unto itself. There is no right or wrong. It’s what you make of it, and what’s black can be gray, and what’s gray can be white. It depends on your framework. The challenge is to share the same framework so that you’re seeing the same page in the same way.


Q. How do you hire? If you were interviewing me for a job, what would you ask me?


A. I would want to know your goals for the job. Is it money? Learning? Fulfillment? What is it? I would try to figure out if our environment suits your goals. I would not try to sell you to get you to take the job. I also will ask, “How curious are you?”


Q. I imagine that most people simply say, “Very.”


A. But then I’d ask, “Outside the headlines, what were some of the most interesting things you’ve noted in the last couple of weeks, and tell me why, and what did you do about it?” That would reflect what you think is interesting, and that tells me a fair bit. If you can cite many disparate topics, that’s a step in the right direction. The point is, we’re trying to find the right fit. In a fast-changing environment, you need to learn more and more and more. There’s so much to learn, and you can’t be taught all the permutations and combinations of the answers, so you have to learn on your own. And to learn on your own, you need curiosity.


Q. What other questions?


A. I’ll ask: How willingly do you accept stuff, and how willing are you to question things? How creative are you in finding your own answers? For example, everyone knows in school that you cannot divide by zero. Why? I try to find if they’ve actually questioned things like that at any time. The point is, we’re usually handicapped by our own borders, and we will not think beyond them. I think there’s one rule of thumb in creativity: when you’re brainstorming, you have to suspend disbelief. That’s a key ingredient. There’s time enough to challenge it and poke holes, but not at the time of generation.


I’ll also change the subject to one where they have some expertise. So I’ll ask what their passions are, and then I’ll ask questions. If it’s ornithology, I’ll start talking about the evolution of birds and ask questions like, “How do you think reptiles got feathers?”


Q. What else do you look for when hiring?


A. Brains and drive. Those are the basics. Without them, it’s probably going to be a long shot. After we work through that, then it’s curiosity and attitude.


Q. How do you get at the question of attitude?


A. Are you willing to learn from your mistakes? Do you do that automatically? Are you willing to set the bar higher? Are you able to deal with failure? Can you bounce back from it?


Q. What’s your take on the standard interview question about strengths and weaknesses?


A. I never really ask about weaknesses, because it’s meaningless. I ask more about strengths, but I ask it from a different angle. I’m more interested in the answers from a more personal perspective as opposed to a professional environment. I’ll typically ask: How would you describe yourself in three words outside the work environment? And then: What do you consider your natural strength? What do you do that comes without any effort, that your peers struggle with and can’t even match? What is natural for you? Other skills emanate from that natural core. Someone once answered that question by saying, “People tend to just come and talk to me.” That really intrigued me.


Q. What’s your natural strength?


A. I can zoom in, zoom out.


Q. What’s it like to work for you day to day?


A. Certain aspects of my management style are extremely frustrating. There are many, many questions posed to me, many decisions asked of me. I try not to make them. I respond with more questions, because I want them to find the answer. It can be very frustrating to my employees, but I’m trying to get others to scale up and learn. They understand and accept my approach, but many still feel frustrated because they just want the answer.


Q. What is your advice for students who are graduating from college?


A. I tell all of them two things, and that goes for both undergrads and M.B.A.’s. First, experiment. If you’re 22 years old as an undergrad or if you’re 27 just out of your M.B.A., in both cases you’ve got a clean slate. You can go in any direction. So experiment. That can also mean taking a lower salary in order to experiment.


This is all in hindsight, of course, because I didn’t do it. I went to Wall Street after getting my M.B.A. If you experiment in different jobs and functions in those two or three years out of school, you will have a much better shot at finding your sweet spot. And the sweet spot is the intersection between what you’re really good at and what you love to do. If you can find that intersection, you are set. A lot of people would kill for that because, at 65, they’re retiring and never found it.


So don’t put so much emphasis on initial compensation. Don’t listen to all the harping from the family. Try to find your sweet spot and, once you find it, invest in that. You don’t want to get degrees just to do work you don’t really like. If you’re miserable, even if you make a lot of money, that’s still 40 years of your life.


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House leaders offer short-term debt increase









WILLIAMSBURG, Va. – House Republicans announced Friday that they will vote next week to authorize a temporary extension of the debt limit, pushing off a politically unpalatable fight in the hopes of extracting further spending cuts from Democrats in a new budget deal.


The new offer, announced at the conclusion of a three-day retreat, represents a modification of the Republican leadership’s previous demand that any debt limit increase, temporary or otherwise, must include equivalent spending reductions. The temporary increase this time comes with the stipulation that it will “give the Senate and House time to pass a budget,” something the GOP notes that the Democratic-led Senate has failed to do so for years.


A leadership aide argued that it is consistent with the so-called “Boehner Rule,” which requires spending cuts or reforms in return for a debt-limit extension. Also, if Congress fails to pass a budget in time, the terms of the House offer would then call for lawmakers to stop receiving pay, just as the nation would then again face the threat of a default. Republicans say that the budget would only include an extended debt-ceiling increase if Democrats agree to significant spending cuts.





QUIZ: Test your knowledge about the debt limit


“The Democratic-controlled Senate has failed to pass a budget for four years.  That is a shameful run that needs to end, this year,” House Speaker John A. Boehner (R-Ohio) was to tell members of the GOP conference, according to prepared remarks. “We are going to pursue strategies that will obligate the Senate to finally join the House in confronting the government’s spending problem.  The principle is simple: no budget, no pay.”


The party leaders hinted at the strategy Thursday, borne out of the bruising fiscal cliff battle in December that divided the House majority. It would push off the most immediate of three coming fiscal battles, which also include automatic across-the-board spending cuts and the expiration of the resolution that funds the government’s operations.


President Obama has maintained that extending the nation’s debt limit was non-negotiable, warning that the failure to do so threatened the nation’s long-term credit rating. At a news conference earlier this week, Obama called it “absurd” that Republicans would refuse to “pay the bills they’ve already racked up.”


“It would be a self-inflicted wound on the economy.  It would slow down our growth, might tip us into recession, and ironically, would probably increase our deficit,” he said.


House leaders have used their time in Williamsburg, Va., to recalibrate their approach to negotiations. In a series of sessions on the grounds of a golfing resort, party leaders including Rep. Paul D. Ryan (R-Wis.), the chairman of the House Budget Committee and former vice presidential candidate, discussed the need to focus on reaching the achievable rather than the ideal when it comes to spending reduction goals, recognizing the party controls only the House, with a Democratic-led Senate and White House.


PHOTOS: Past presidential inaugurations


House Majority Leader Eric Cantor (R-Va.) said in a statement that the GOP proposal “is the first step to get on the right track, reduce our deficit and get focused on creating better living conditions for our families and children.”


“It's time to come together and get to work,” he said.


Senate Majority Leader Harry Reid (D-Nev.) welcomed the move.


"It is reassuring to see Republicans beginning to back off their threat to hold our economy hostage,” the Nevada Democrat said in a statement. “If the House can pass a clean debt ceiling increase to avoid default and allow the United States to meet its existing obligations, we will be happy to consider it.” 


The White House signaled that it was "encouraged" to hear the news from House leadership.


"We are encouraged that there are signs that Congressional Republicans may back off their insistence on holding our economy hostage to extract drastic cuts in Medicare, education and programs middle class families depend on," its statement said.


[For the Record, 11:35 a.m. PST  Jan. 18: This post has been updated to include the White House's response.]


Follow Politics Now on Twitter and Facebook


michael.memoli@latimes.com


Twitter: @mikememoli





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Premiere: Hear Twin Shadow's Synthpop Remix of 'Everything Is Embarrassing' by Sky Ferreira











In the waning days of last summer, Sky Ferreira’s “Everything Is Embarrassing” became the perfect sugary pop jam to ride out the sun-soaked final days of the season. Now, as if to get us pumped for the coming spring, synthpop artist Twin Shadow has given it a bass-bouncing remix ready for the dance floor.


For the remix Twin Shadow pulls out the track’s wry “Maybe if you let me be your lover/maybe if you tried then I would not bother” line and flips it through a series rubbery bass grooves and then layers it with synth flourishes, taking the Debbie Gibson vibe of the original and cranking up the ’80s volume to Human League levels.


It’s just the latest wave (new or otherwise) that Ferreira has ridden lately. “Everything Is Embarrassing” was named a Best New Track by Pitchfork when it dropped last August, and The New York Times, in its review of the EP Ghost, called it “one of the year’s unlikely pop gems.” New York Magazine went on to name “Embarrassing” the song of the year, an accolade that was quickly followed by its TV premiere on Late Night with Jimmy Fallon last week – backed by the Roots crew.


Check out Twin Shadow’s remix of the sleeper hit of 2012 below. Grab the Ghost EP from iTunes here.







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Bob Dylan considering Dylan Thomas centenary show in Wales






LONDON (Reuters) – American singer-songwriter Bob Dylan may play a special concert in Wales to mark the centenary of the birth of Dylan Thomas, the Welsh poet after whom he may or may not have named himself.


The member of parliament for West Swansea, Geraint Davies, said he had asked Dylan if he would perform in the city as part of a series of commemorative events next year.






“Bob Dylan named himself after Dylan Thomas. I have asked Bob Dylan whether he would be prepared to give a centenary concert in Swansea, in order that he could blend his music with Dylan Thomas’s poetry,” Davies said in the British parliament on Thursday.


“Sony Music has come back and said that Mr. Dylan is thinking very positively about the idea.”


Dylan, 71, was born Robert Allen Zimmerman and the reason he picked his adopted name while a young folk singer in Minnesota has long been debated by fans.


The most popular theory is that he did indeed name himself after the Welsh poet, though another says it was after Marshal Matt Dillon in the TV Western “Gunsmoke”.


Dylan Thomas, whose works include “Under Milk Wood” and “Do Not Go Gentle Into That Good Night”, was born in Swansea in 1914 and died in New York 1953 after a drinking binge.


Bob Dylan still tours regularly and his latest recording “Tempest”, released last September, was hailed by the critics.


(Reporting by Angus MacSwan; Editing by Paul Casciato)


Music News Headlines – Yahoo! News





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Flu Season ‘Worse Than Average,’ Officials Say





This year’s flu season is shaping up to be “worse than average and particularly bad for the elderly,” Dr. Thomas R. Frieden, the nation’s top federal disease-control official, said Friday.




But the season appears to have peaked, added Dr. Frieden, the director of the Centers for Disease Control and Prevention, with new cases declining over most of the nation except for the far West.


Spot shortages of flu vaccine and flu-fighting medicine are occurring, but that reflects uneven distribution, not a supply crisis, federal officials said. They urged people seeking flu shots to consult flu.gov and doctors to check preventinfluenza.org for suppliers.


Vaccine-makers will ultimately be able to deliver 145 million doses, 10 million more than projected earlier, the officials said. The Food and Drug Administration has allowed the maker of Tamiflu to release 2 million doses it had in storage.


The older Tamiflu is perfectly good, said Dr. Margaret A. Hamburg, the commissioner of the F.D.A., who joined Dr. Frieden on a telephone news conference. “It’s not outdated, it just has older labeling,” she said. “Repackaging it would take weeks,” she added, so her agency told the company not to bother.


Weekly recorded deaths from flu and pneumonia are still rising, and are well above the “epidemic” curve for the first time. But how severe a season ultimately proves depends on how long high weekly death rates persists. Flu deaths often aren’t recorded until March or April, well after new infections taper off.


Dr. Frieden said the season appeared to resemble the “moderately severe” season of 2003-2004, which also had an early start and was dominated by an H3N2 strain. In such seasons, 90 percent of all deaths occur among those over 65. Flu hospitalization rates are “quite high” now, Dr. Frieden said, and most of those hospitalized are elderly.


Last year’s flu season was unusually mild. At the end of the season last year, 34 children had died.


So far this year, the C.D.C.'s count of pediatric flu deaths, which includes premature infants and teenagers up to age 17 — has risen to 29, although this is acknowledged to be an undercount as it is only of lab-confirmed influenza cases reported to the agency.


Henry L. Niman, a flu-watcher who follows state death registries and news reports, counts about 40 pediatric deaths so far and predicted that the total would ultimately be close to the 153 of the 2003-04 season, but much less than in the 2009-2010 “swine flu” pandemic, when 282 children died. That flu was a strain never seen before and many more children caught it. The elderly had surprising resistance to getting it, presumably because similar flus that circulated 40 or more years ago had given them some immunity. But among those elderly who did catch it, the death rates were high.


Dr. Frieden suggested that the elderly avoid contact with sick children. “Having a grandparent baby-sit a sick child may not be a good idea,” he said.


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Your Money: Finding Investment Advice for More Modest Retirement Accounts





If you’re perfectly capable of running your own retirement savings, selecting the right mix of low-cost investments, rebalancing at the right time and not buying and selling out of fear or greed, then good for you.




But the majority of people — maybe the vast majority — are not like that. They may be smart enough to do the right thing, in theory, but they forget or slip up or are taken in by well-meaning friends bearing stock tips or annuity-peddling scoundrels who make nice to them over free steak dinners.


For people with more than $500,000 or so to invest, finding first-class help is hard but not impossible. If you have more than $1 million, you’ll have your choice of many of the best financial advisers in town. But until recently, it was tough for people with a few hundred thousand dollars or less to find reasonably priced assistance, especially if they were insistent on putting money in the kind of low-cost investments that would not pay a commission or other fee to the person helping them.


On Friday, the latest entrant in an increasingly crowded field of services trying to serve this customer is introducing its offering, which is called Rebalance IRA. As the name suggests, it exists only to help you with your Individual Retirement Account, perhaps one that you’ll fill with money that’s been sitting around in several 401(k) or similar accounts at previous employers.


Rebalance IRA representatives will talk with you about your goals, invest your money in a low-cost collection of index fundlike exchange-traded funds that don’t try to make big bets on individual stocks, and rebalance the investments when necessary. In exchange, you agree to hand over one half of 1 percent of your assets each year, with a minimum annual fee of $500.


The company’s single-minded focus on retirement savings is somewhat narrow, but it makes sense given how much money is at stake and how badly many people mess things up when they do it on their own.


There is more money in I.R.A.’s than in any other type of retirement vehicle, according to estimates from the Investment Company Institute. I.R.A. balances totaled $5.3 trillion at the end of the third quarter of 2012. That’s more than the $5 trillion in 401(k), 403(b) and other similar plans; the $4.8 trillion in government retirement plans; and the $2.6 trillion in traditional pensions.


According to the Department of Labor, the professionals who run pension plans earned an 8.3 percent annual return from 1991 to 2010. People fending for themselves in 401(k) and similar plans earned 7.2 percent. Nationwide I.R.A. performance figures are more scarce, though one 2006 study by the Center for Retirement Research put the figure for 1998 to 2003 at 3.8 percent annually, roughly 2 to 3 percentage points worse than pension fund managers and 401(k) investors did during that same period.


These numbers are a bit squishy, given that pensions often make bets in markets that 401(k) investors can’t access and the high fees that many 401(k) participants pay that pension managers don’t. Still, there are about a thousand reasons plenty of do-it-yourselfers (who, after all, did not volunteer to manage their retirement money) would be likely to get worse returns than, say, pension managers.


To start with, large numbers of people make extreme bets. At Vanguard, 10 percent of retirement plan participants invested only in stocks in 2011, while 8 percent had no stocks at all. At least this is better than 2004, when 35 percent of its customers were that far out of balance. Then, there are the emotional challenges. To stick with the mix of investments you’ve selected, you need to sell things that have done well and buy investments that have lagged recently. That’s hard to do.


Then there’s the grab bag of other feelings. The bad experience with a broker you may have had in the past. The spouse who may scold you for doing the wrong thing. The fear that may have caused you to bail out in early 2009 or the greed that has you pouring money into stocks today, now that they’re looking up again. This can be intensely hazardous to your long-term financial health.


All of this should be self-evident, but because we’re playing on the field of emotions, it isn’t. Still, it wasn’t immediately obvious to Mitch Tuchman, the man behind Rebalance IRA, who started a service for do-it-yourself index investors called MarketRiders in 2008.


A former software entrepreneur, Mr. Tuchman had a midlife conversion to passive investing and not trying to beat the market, and he wanted to help others invest in the same way. “We thought we could build such great software that we could turn everyone into a do-it-yourselfer,” he said. “And people said they didn’t have time or they didn’t care to do it themselves.”


MarketRiders charges subscribers $150 a year for instructions on how to adjust their portfolios and when, and it will continue to exist. But Mr. Tuchman, who had also started managing millions of dollars on the side for friends and family who simply could not be bothered to do it themselves, eventually realized that his sideline was where the real mass-market opportunity lay.


So why would you let this guy handle your money? It’s a perfectly reasonable question, and plenty of start-ups in the money management space don’t do a particularly good job of answering it.


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