Allan Roth

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.
Treasury bond
A friend sent me the following article from the USA Today insert of his local paper. The article proclaimed “ The 60/40 stock-and-bond portfolio mix is dead in 2016” and went on to explain that with bond interest rates near historical lows, one should reach for higher returns by taking more risk with stocks. The article quoted one adviser who suggested investors in their 60s invest 70 to 80 percent of their portfolio in stocks.
Ever hear something like this and scratch your head wondering what it means?
odds of investing
Perhaps you’ve heard that low-cost passive index mutual funds tend to perform better than funds in which managers actively pick stocks. By my calculations, however, over any given year, roughly 42 percent of actively managed funds outperform the low-cost index. So buying the index fund seems to be shooting for being only slightly better than average. Yet don’t most of us want to be an A student at the top of the class?
Investment newsletter claim
Have you ever received an email or letter reading something like this?
money background
I’m typically not one to jump on promo offers, as they usually take a ton of time and have too many strings attached. Every now and then, however, I see a great offer that holds up to scrutiny. That’s why I took up Capital One 360 on its offer for free money and will make $500 on the deal. Capital One 360, by the way, is an FDIC-insured unit of Capital One Bank. Below are the reasons I chose this opportunity, plus some advice on how you might want to evaluate this and other promotional offers.
John C Bogle
Last week, 200 “Bogleheads” met for an annual gathering near Philadelphia, PA to hear the legendary founder of Vanguard, the world’s largest fund company, talk about investing. The Bogleheads is a not-for-profit organization in which anyone can post financial questions (at and then hundreds of volunteer members (Bogleheads) who are seasoned investors respond with advice — generally without a profit motive.
Stack of credit cards
I’m a recovering frequent flier and hotel frequent stayer junkie. My United and Delta credit cards added to my flights and hotel stays. Over the decades, my wife and I have had many free vacations (air, hotel, car) in places such as Australia, Hong Kong and Hawaii. I’ve even had a nice Caribbean cruise. But those days are over and here’s why, as well as what I think is a better way.
iStock_000014170454_Large extended warranty
Whenever I buy something electronic, whether a new smartphone, TV, laptop or whatever, I typically receive a hard pitch to buy an extended warranty on the product. I generally opt not to, but is that the right choice? To answer that question, there is both an economic and a psychological way to look at it.
Millennials overreacting
Just 26 percent of people under 30 are investing in stocks, according to a survey published by, a personal finance site. By comparison, 58 percent of adults ages 50 to 64 invest in stocks. Since millennials have a much longer time horizon, stocks are generally more appropriate for them. So this trend is exactly the opposite of what logic would dictate.
Bond note
Ever wonder why prices of bonds and bond funds do what they do when interest rates fluctuate? Here’s what you need to know about how bonds work — as well as what you may think you already know that’s wrong.
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