Allan Roth is the founder of Wealth Logic, an hourly-based financial planning firm in Colorado Springs, Colo. He has taught investing and finance at universities and written for Money Magazine, The Wall Street Journal and others. His contributions aren’t meant to convey specific investment advice.

Is U.S. Stock Trading Rigged?

In his new book, Flash Boys: A Wall Street Revolt (W.W. Norton & Company, 2014), Michael Lewis, author of  Moneyball and The Big Short, says stock market trading may be rigged by so-called high frequency traders using supercomputers. During an interview about his book Sunday on CBS’s 60 Minutes, Lewis discussed the impact of high frequency trading in what’s known in the brokerage world as front-running. To explain what this is, let’s say you wanted to buy 100 shares of …

Why I Like 529 College Savings Plans

If you want to help pay for higher education for a child or grandchild, consider using a 529 college savings plan. These plans allow you to put money aside for tuition and other college-related expenses, while getting some nice tax advantages as well. Since I have a son who will be college bound in a couple of years, I’ve looked at all sorts of ways to pay for it and can say the 529 plan is by far the best …

The Danger of Acting on Stock Market Headlines

Over the past five years, U.S. stocks have tripled in value. For example, the Wilshire 5000 total return index increased from 27.50 to 82.62. Yet paranoia about the market has caused many investors to miss out. The chart below shows the return an investor would have received just by owning a total U.S. stock index fund and reinvesting the dividends. A total U.S. stock index fund essentially owns every publicly held company based in the U.S. Though the chart tracks …