Good afternoon and welcome to my interview with Bill Parrott, President and CEO of Parrott Wealth Management in Austin, Texas.
Bill, thank you for taking time out of your day to sit down with me and answer a few questions about your business.
My pleasure Bill. I appreciate you reaching out to me and I look forward to our interview.
Great. Let’s get down to it. Why did you start your own firm?
I started my own firm to offer more services like financial planning and investment management to individuals free of any conflicts. I also wanted to be a true fiduciary and put the interests of my clients first.
You’ve been in the investment business a long time. Why start your business now?
Well, that’s a good question. I’ve been in the investment business for twenty-eight years and I’ve worn many hats from financial advisor to branch manager. In 2015, I turned fifty and my daughter was applying to college and I thought to myself if I don’t start my own business now I never well. In addition, my previous employer was flying me all over the country to present investment workshops and meet with clients. The travel was becoming a bit much and I wanted to spend more time with my family and work with clients in my neighborhood. After you’ve seen one airport terminal, you’ve seen them all.
Excellent. Tell me about your process when working with a new client.
When I meet with a new client I try to get a good understanding of their financial situation by offering a financial plan and risk tolerance profile. In addition, to the questionnaire, I spend a fair amount of time talking to them about their financial goals and dreams. The time I spend discussing their financial situation gives me a good idea of how to structure their investment accounts. I may meet with them five or six times before we decide to open a new account.
Once you set up a client account how often do they hear from you?
I offer to meet with clients quarterly so we can discuss their accounts and the market. The quarterly meetings are a great way to check in to see if anything has changed with my clients. In addition to the quarterly meetings, I email a monthly newsletter to clients and potential clients. I’m willing to meet with anybody at any time especially if they need help. I also make house calls!
I looked at your fee schedule and it seems awfully low. Can you tell me about your fee structure?
Ha Ha! I’m often told my fee schedule is too low but it works for me and more importantly it works for my clients. My fee structure is simple and clear. The fee is .5% (one half of one percent) on the first $10 million in assets. My fee is about half of the industry average. In addition, I charge a flat $525 for a financial plan. I don’t charge any other fees and I don’t have any fee minimums.
Your fee is low! What type of investments do you offer?
In addition to my low fee, I offer low cost investments like index funds and exchange traded funds from Dimensional Fund Advisors, Vanguard and Blackrock. These three fund families are excellent financial partners because they don’t charge a sales commission and their internal fees are extremely low. I like working with these firms because they also have a client first mentality. I also offer individual stocks and bonds which don’t have any internal fees.
How do your clients keep up with their accounts?
T.D. Ameritrade is my custodian and clients can view their accounts 24/7 on their phone, iPad or computer. T.D. Ameritrade will send a monthly statement to the client listing all their positions. On a quarterly basis, I send a detailed report from Morningstar highlighting their performance, fees, gains, losses, income and much more.
Do you have any employees?
I do. I have an assistant who works with me and her name is Janet Jackson.
Yes. Janet has a great name and we’ve been friends for a long time. We started working together on the same day when we were hired by Dean Witter in Pasadena in 1990! She is a tremendous resource and helps with onboarding new clients and helping me with the firm paperwork.
I love your logo. Can you tell me more about it?
I’ve been blessed with a colorful last name and so I wanted to incorporate it in my business. I’ve been told you shouldn’t name your business after yourself but not everybody has a cool last name like mine! Ha! Ha! I wanted a bright and colorful logo that would make people smile as well. My daughter added the pie chart to the letter “O” which is a nice touch.
Bill, thank you for your time. It sounds like you love the business and have a genuine concern for your clients. How can people get in touch with you?
You know me well! I can be reached at firstname.lastname@example.org and my website is www.parrottwealth.com.
I notice you end your blogs with a Bible verse or quote. What do you have for us today?
Here is a good one, or two, from Matthew: Jesus replied: “‘Love the Lord your God with all your heart and with all your soul and with all your mind.’ This is the first and greatest commandment. And the second is like it: ‘Love your neighbor as yourself.’ ~ Matthew 22:36-39
A good one. Thank you!
Bill Parrott is the President and CEO of Parrott Wealth Management, LLC. For more information on financial planning and investment management, please visit www.parrottwealth.com.
August 22, 2017