Real Estate Is Crashing!

According to Zillow, the value of my home fell 6.2% last month. I was shocked because I thought real estate always went up, especially in Austin, Texas, the home of Longhorn football, BBQ, live music, and weekend bridal shower parties. Is it time to panic and sell my home?

The recent housing data is terrible, as housing starts have fallen 20% from the April peak, and existing home sales are down 26% from January. Mortgage rates increased 84% from last year, and the current 30-year rate is 5.13%. The combination of rising interest rates and inflation is making homes less affordable.

Real estate is volatile but not as visible as stocks because homes don’t trade on a public exchange. However, Zillow and a few other real estate sites now post estimated home values and recent price changes, so you can track your home value if you want. The Case Shiller Home Price Index compiles valuation data from several markets, including a national average. Since 1987 the index has risen 304% despite a 20% correction during the Great Recession from 2007 to 2009.

Should I sell my home? Of course not. I don’t care the value fell by 6.2% last month because it has soared 109% since 2013, and I’m not moving for several years, and I know it will rebound as most homes did from the previous recession. I will not panic and make a poor financial decision because the price dropped, and if I ask most people if I should sell my home because the price has fallen, they would tell me I’m crazy because real estate always rises. In fact, they would consider it foolish and unwise.

Yet, when stocks fall, people panic and sell their holdings, moving to cash to avoid a further meltdown. The S&P 500 lost 8.25% in June, and investors sold billions of equities. What happened in July? The S&P 500 surged 9.25%. Since 2018, the index incurred seven monthly drops of 6% or more, and each time it recovered. In December 2018, it crashed by 9.03% but climbed 17.2% over the next four months, and over the past decade, the S&P 500 jumped 255%.

I’m not sure why people panic and sell stocks when they fall, but they do. Stocks and real estate are growth assets, creating generational wealth if you hold them through all market cycles. If people treat stocks like homes, fewer people will sell them when they fall, and some might even buy the dip. I believe real estate investors do well because they own their home for decades, don’t track the value daily, or panic if it drops. Also, it is a hassle to move from one home to another. I believe that real estate returns would be considerably less if you could buy or sell a house with a click of a mouse as they do with stocks.

Investors relish real estate because most have made money over time, especially if they live in a desirable location like Bend, Oregon, or Alpine, Wyoming. However, since 1990, the S&P 500 has trounced the Case Shiller Home Price Index by 1,903%.

Here are a few suggestions to help you improve your stock market returns.

  • Treat your stock holdings like real estate, and own them for decades.
  • Review your investment accounts annually.
  • Rebalance your accounts as needed.
  • If you don’t need the money for three to five years or more, buy stocks when they fall.
  • Analyze your stock holdings on weekends so you can’t trade them instantaneously.
  • Document the reasons why you want to buy or sell your equity investments.
  • If you want to sell stocks during a market selloff, wait a few days because they could rebound.
  • Since 1926, stocks have averaged a 10% annual return, but it has not been in a straight line. Incorporate a buy and hold mentality so you can capture the long-term return from stocks

I know my home will recover because everybody is moving to Austin, so it’s only a matter of time before it starts to rise again. In the meantime, I will continue to mow the lawn, vacuum the house, and pay my property taxes.

Location, location, location. ~ Anonymous

August 24, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. I’m a California transplant by way of Connecticut living in Austin.

Are You Ready To Retire?

Are you ready to enjoy your golden years? Retirement is a goal for most investors, especially those who have faithfully contributed to their 401(k) plan for three or four decades. Is it time to cash in your chips and go all in on retirement?

A successful retirement requires years of planning and covers three main topics: Where will you live? What will you do? How will you pay for it? Let’s explore each subject.

Where to live?

A key component of retirement is where to live. Do you want to retire in your hometown or move to an exotic location? I love the beach, and living in Laguna Beach, La Jolla, or Maui ranks high on my list, but I also love the mountains, so Estes Park and Colorado Springs are strong contenders. I love sunshine, which removes the Pacific Northwest and the United Kingdom. I want access to restaurants, entertainment, sporting events, hospitals, and airports, eliminating most rural areas. After you decide on your retirement destination, will you supersize your home or downsize it so it’s economically affordable? Of course, if you invest well, you can own multiple homes. According to the Department of Labor, housing accounts for approximately 32 percent of expenditures for those aged 65 and over.[1]

List your top three retirement destinations.

  1. _________________________________________________________________________
  2. _________________________________________________________________________
  3. _________________________________________________________________________

What will you do?

What will you do in retirement? Do you want an active retirement or one of leisure? I plan to hike, bike, ski, fish, dive into a good book, and watch movies. I also plan to volunteer and serve others. Having hobbies is paramount in retirement and will keep you active and focused. Another possibility is to turn your hobby into a revenue-generating machine by selling your goods through Shopify or Etsy. Hobbies can improve your health, and according to WebMD, they reduce stress, promote mental health, and improve relationships.[2]

List your top three hobbies.

  1. _________________________________________________________________________
  2. _________________________________________________________________________
  3. _________________________________________________________________________

How will you pay for it?

After you decide where to live and what to do, how will you pay for it? If you plan well, then your resources should be able to support your lifestyle. Before you send the retirement email to your boss and colleagues, take an inventory of your assets. What do you own – stocks, bonds, mutual funds? In addition to your investments, will you receive a pension? And don’t forget Social Security because it will be a primary ingredient of your retirement income. How much income can you expect in retirement? If your investment portfolio is $1,000,000, expect an annual income stream of $40,000; if your Social Security is $30,000 per year, your projected retirement income is $70,000 before taxes. Keeping tabs on your expenses is a must in retirement, and controlling your spending can prolong your retirement assets. Of course, the opposite is also true. If you spend with reckless abandon, you could run out of money.

What are your top three sources of retirement income?

  1. _________________________________________________________________________
  2. _________________________________________________________________________
  3. _________________________________________________________________________

Retirement is an exciting time, but do you need to wait until your sixty-five? No. If your assets support your lifestyle, you can retire anytime; no need to wait until your employer offers you a gold watch, but how do you know you won’t run out of money? A financial plan can tell you if you’re on track to leave the workforce. It quantifies your hopes, dreams, and fears and will project your future spending based on your current assets, spending limits, and financial goals.

A person retiring at age 40 needs more growth assets than one retiring at 75 – age matters. Owning stocks allows your money to combat inflation, and inflation will destroy your purchasing power if you leave your money parked in cash or T-Bills. Do not retire your assets when you retire because stocks can help you enjoy a fruitful retirement, despite their recent performance.

If you’re not ready to fully retire, consider taking a few months off as a trial run. Rent a home in a different city, cruise the seven seas or volunteer in a national park. Give it a try; you can always return to your nine-to-five job.

Beware the hobby that eats. ~ Benjamin Franklin

August 22, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. Ideally, I will own homes in Colorado and California to enjoy surf, sand, and snow.


[1] https://www.bls.gov/opub/btn/archive/housing-expenditures.pdf

[2] https://www.webmd.com/balance/health-benefits-of-hobbies, Venkat S.R. and reviewed by Poonam Sachdev, 5/23/2022

College Football

Next week starts another college football season, the best time of the year. The usual suspects like Alabama, Georgia, and The Ohio State University are projected to finish near the top. The offseason was entertaining as USC and UCLA said they would leave the Pac-12 and join the Big-10, causing a domino effect amongst the other power conferences. Regardless of who ends up where I know the season will be exciting and enjoyable.

Before the season starts, analysts and industry experts opine about the best teams in college football. There is no shortage of lists projecting conference winners, bowl games, and Heisman Trophy finalists. However, these projections are futile because teams still must play the games, and as Mike Tyson said, “Everyone has a plan until they get punched in the mouth.” For example, last year, the Baylor Bears were picked to finish in eighth place in the Big-12 Conference. The experts said they would win two games and finish conference play with a mediocre record of two wins and seven losses. What happened? Baylor finished the season with twelve wins and beat Oklahoma State for the Big-12 Championship. And they did not stop there as Baylor dismantled Ole Miss in the Sugar Bowl. So much for predictions.

The best coaches and teams in college football focus on plays and execution. They’re only concerned about things they can control and do not worry about predictions or projections. They know that if they do not turn over the football or make mental mistakes, the odds of winning rise dramatically.  

As an investor, consider following the lead of great college football coaches and programs by focusing on your goals, spending, savings, and asset allocation. They are the only things you can control; everything else is beyond your reach. If you decide to time the market, trade excessively, or attempt to predict the future, you could end up in the poor house. It’s impossible to control interest rates, market volatility, or the inflation rate, so don’t try. Also, ignore those who think they know what will happen tomorrow. Though they may look the part while pontificating on TV, they don’t know more than the viewing audience.

Focus on your financial plan and goals as markets continue to bounce around. Think long-term, buy stocks, and enjoy the college football season.

Though I don’t make predictions, I believe Baylor beats Alabama for the National Championship.

Win one for the Gipper. ~ George Gipp

August 20, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. I did not attend Baylor, but I did play college football for the University of San Diego.

Have Stocks Bottomed?

Have stocks bottomed, or is this a bear trap? Since Mid-June, the Nasdaq has risen by more than 20%, which, by definition, is a bull market. However, the tech-heavy index is still down 16% on the year. On August 10, The Wall Street Journal declared a new bull market had arrived. [1] I hope they are right.

No one likes losing money, but some of the best market moves occurred during bear markets as sophisticated investors exploited anxious investors. For example, the Nasdaq has had a dozen moves where it climbed 3% or more this year and has made three runs where it jumped by more than 12%. Will this time be different? Have stocks bottomed?

The Nasdaq produced a measly 2.6% return from 2000 to 2014. From 2000 to 2002, during the Tech Wreck, it crashed by 75%, and during the Great Recession, it fell by 51%. A few months after the Tech Wreck began, the Nasdaq snapped back by 23% in April 2000 but fell 61% over the next 18 months before rallying again in April 2001. The index appeared to bottom in October 2001 when it climbed 35% but lost another 43% the falling year. The market recovered 150% from 2002 to 2007 but was still down 31% from January 2000, and it would not breach that level until 2014. The bear market lasted more than fourteen years, but the Nasdaq still delivered several significant up moves as it tried to recover.

Is the current rebound a bear trap or a bull market? I don’t know, but I do know that if you try to time the market by jumping in and out, you will eventually lose money regardless of the market’s direction. Typically, investors sell stocks as they fall and repurchase them after they have risen significantly. If they do the opposite, they might make some money.

Here are a few steps to help you become a better investor during bear markets.

  • Develop a financial plan. It will keep you focused on your financial goals. I’ve noticed that individuals with a plan are less likely to panic and liquidate their investments when markets sour. Instead, they look for buying opportunities as stocks fall.
  • Create three different investment buckets to meet your short, intermediate, and long-term needs. If you need money in one year or less, buy US T-Bills, and if your time horizon is three to five years, consider a mix of cash, bonds, and stocks. If your timeframe is five years or more, buy stocks.
  • Buy the dip. It is challenging to buy stocks as they fall, but the market has always recovered. Identify quality companies or funds you want to own if the price drops.
  • Rebalance your accounts. Our rebalancing software screens our models weekly, and if it finds portfolios that are off-kilter, it will rebalance them back to their original allocation. Rebalancing removes emotion from the buy and sell decisions because it is automated. In June, our models sold bonds to buy growth funds, which, so far, has proved correct. If you rebalance regularly, it will keep your risk level and asset allocation in check.

Media pundits and Wall Street experts love to call tops and bottoms, but it is impossible. Ignore people with megaphones on big stages telling you to buy or sell because they can lead you to financial ruin because they know nothing about your financial hopes, dreams, or fears. Focus on your goals, think long-term, and good things will happen.

The idea that a bell rings to signal when to get into or out of the stock market is simply not credible. After nearly fifty years in this business, I don’t know anybody who has done it successfully and consistently. I don’t even know anybody who knows anybody who has. ~ Jack Bogle

August 15, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. My asset allocation is approximately 75% stocks and 25% bonds and cash, where it has been for the past thirty years or so.


[1] https://www.wsj.com/articles/global-stocks-markets-dow-update-08-10-2022-11660116855, Sam Goldfarb, August 10, 2022

Pikes Peak

Pikes Peak looms large at 14,115 feet above sea level, known as America’s Mountain, and is also the inspiration for America the Beautiful. Pikes Peak Highway allows people of all abilities to enjoy the spectacular views from the summit. In addition to driving to the top, visitors can enjoy a comfortable ride on the Pikes Peak Cog Railway, and more adventurous types can hike to the summit.

The trip to the summit by train takes about an hour and a half. If you drive, allow for three to four hours, and if you hike the 13.5-mile trail, allocate eight hours or more. The fastest recorded time to summit Pikes Peak was 7 minutes 57 seconds in 2018 as driver Romain Dumas of France raced up the hill during the annual Pikes Peak Hill Climb. I recently reached the summit via the Cog Railway. It was a beautiful ride through the Pikes National Forest, and the views were stunning.

As I mentioned, there are several ways to reach the peak, and if you invest, there are numerous routes to reach your financial goal, and you must decide which one to take. You may obtain your goal sooner or later, depending on your chosen path.

Let’s explore a few investment tools to help you reach your financial goals.

  • You will need a financial plan regardless of the path you choose. All the visitors that reached the summit of Pikes Peak followed a route, or path, to the top, and they had a plan. A financial plan is your trail map, train schedule, or road map, and it will help guide you on your financial journey and lead you to your final destination.
  • Establishing goals is paramount for financial success. Each visitor to Pikes Peak had a goal to summit the mountain. If you set financial goals, you will increase your odds of investment success. According to a Harvard study, 3% of their graduating 1979 MBA class had written goals, and their net worth was ten times that of the remaining 97% of their classmates who did not have any written goals.[1]
  • A timeline can help you succeed as an investor. After committing your dreams to paper, prioritize them, so you know which ones to pursue first. In addition, consider your timeframe. For example, buying a new car may have a shorter timeframe than retiring to a tropical island.
  • The proper investment can enhance your investment success as well. If you need your money in less than one year, invest in CDs or US Treasury Bills. If you don’t need the money for decades, buy stocks.
  • Regardless of your path, stop to enjoy the view, check your bearings, and take stock of your inventory. A regular check-up can ensure that you’re still on the right path.

There are many roads to financial success; select the one that best suits your needs and utilize all the tools and resources available to reach your financial summit!

Oh beautiful, for spacious skies
For amber waves of grain
For purple mountain majesties
Above the fruited plain

~ America the Beautiful

August 12, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. I enjoyed the train trip to the summit, but my goal is to hike the trail to the top of Pikes Peak.


[1] https://www.wanderlustworker.com/the-harvard-mba-business-school-study-on-goal-setting/

Ready To Launch

My daughter starts her job in a few weeks, and we are helping her set up her apartment. After years of schooling, she is ready to begin her career, and assisting a child in launching her career takes years of planning and patience. It’s bittersweet because she is leaving the nest to create a new life in a new state, but she is ready to soar.

As a parent, I give my daughter unsolicited financial advice regularly, and sometimes she welcomes it, so here are a few more tidbits for her as she begins a new chapter.

  • Create an emergency fund because unexpected expenses occur often. As your income rolls in, allocate a few dollars monthly to a savings account or money market fund so you can access it quickly. Do not invest your emergency fund in stocks, bonds, or cryptocurrency.
  • Contribute at least ten percent of income to your 401(k) plan. If your company offers a Roth option, choose it because your money can grow tax-free for decades. Initially, allocate 100% of your funds to stocks, and do not buy bonds.
  • Donate ten percent of your income to groups, charities, or organizations you support. Cheerful givers are also successful investors.
  • Open a brokerage account to buy stocks. Investing in a taxable account gives you flexibility if you want to retire early, buy a house, or travel the world.  
  • Buy and hold stocks. Don’t worry if the stock market rises or falls because it will do so regularly, and the market will experience corrections of 20% or more every few years. The odds of a 50% stock market crash during your working career is 100%. Down days in the market are opportunities to buy great stocks at lower prices. Don’t fear corrections.
  • Avoid buying gold, silver, or other commodities. It’s okay to buy gold or silver coins as collectibles but not as investments. Historically, commodity investments perform poorly relative to stocks.
  • Buy insurance to protect your car, home, valuables, and loved ones. Do not buy life insurance as an investment, and avoid whole-life insurance.
  • Avoid credit card debt at all costs. Debt is a four-letter word; if it grows, it can lead to delayed gratification or financial ruin.
  • Spend freely. If you’re contributing to an emergency fund, a 401(k) plan, and an investment account, then it’s okay to spend the rest of your paycheck on anything you want without guilt.

I’ve seen thousands of financial plans and investment accounts during my career, and the most successful investors I’ve met own stocks, start investing early, save money, and control spending. Individuals who fail to save or invest in their twenties or thirties struggle to make ends meet later in life.

Let’s run a few numbers as to why it’s essential to start investing sooner rather than later if your goal is to retire with a million dollars at age sixty-five.[1]

  • At age 25, you need to save $380 per month.
  • At age 35, you need to save $820 per month.
  • At age 45, you need to save $1,920 per month.
  • At age 55, you need to save $5,777 per month.

If you start investing early, your money can grow through the power of compounding and time. If you started your career forty years ago, in 1982, you enjoyed close to 10% returns as the S&P 500 rose 3,888%; for every $10,000 you invested, it’s now worth $398,000!

Investing takes time and patience. If you start early and save often, the stock market can grow your wealth, even if you make a few bad investments along the way.

Good luck, Little Bird!

You can be young without money, but you can’t be old without it. ~ Tennessee Williams.

August 9, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. My first investment was the Franklin Utility Fund when I was 24.


[1] I used a 7% annual return, and I know $1 million dollars in forty years will not be sufficient to retire.

Time To Buy?

The Nasdaq soared more than 12% in July, its best monthly return since 2020. Small-cap stocks, international holdings, and bonds also participated in the broad-based rally, providing some relief to weary investors. The markets are trying to recover from rising interest rates and persistent inflation, and since the near-term bottom in June, the Nasdaq is up 16.5%. Will the trend continue? Is it time to buy?

The Nasdaq was down 32% when it touched its June low, and if you panicked and sold, you may suffer from FOMO. Of course, no one knows what will happen tomorrow, but the recovery looks robust so far, particularly if inflation retreats and interest rates subside.

Let’s explore projected recovery times for portfolios with three different allocations and investment holdings.

  • An evenly balanced portfolio of stocks and bonds, 50% stocks and 50% bonds, produced an average annual return of 8.3% since 1926.[1] If you keep this allocation, it could take about three years to recover your loss if you were down 20% to start the year.
  • If you sold your investments after a 20% drop, it would take approximately twelve years to recover your loss if you only invested in US T-Bills yielding 2%.
  • If you were down 20% and buried your money in a bank account earning 0.1%, you would never recoup your loss because it would take 224 years to compound your interest payments.

It’s tempting to call a market bottom and buy stocks, but no one knows when they will recover. And the market does not go up in a straight line. They fluctuate like the tide. From 1995 to 1999, the Nasdaq climbed 441%, generating an average annual return of 40%! Staggering! Despite the meteoric rise, it routinely fell 10% or more, and in October 1998, it dropped 30%. If you remained invested through the dips, dives, and drops, you enjoyed exceptional returns, but if you liquidated your holdings, your returns were significantly less.

If you sold your holdings these past few months, is it time to repurchase them? Let’s examine a few scenarios.

  • Do not buy stocks if your time horizon is one year or less. Buy T-Bills or keep your funds in a savings account or money market fund.
  • Is the money earmarked for a significant purchase like a downpayment, tuition bill, or new car? If so, do not buy stocks. Keep your money in short-term cash investments.
  • Buy stocks if your time horizon is three to five years or more. Time wins, and stocks recover, so take advantage of down days to buy quality funds and companies.
  • Are you working and contributing to your company’s retirement plan? If so, keep buying. 401(k) plans are an excellent tool for creating generational wealth because you buy stocks every two weeks regardless of the market conditions.
  • Is your money invested in an IRA that you can’t touch for decades? If so, buy stocks.
  • Buy stocks if the bear market is not impacting your financial plan or long-term goals. A financial plan is paramount if you want to succeed as an investor.

Our investment philosophy is to buy and hold diversified portfolios of stocks and bonds through low-cost mutual funds or ETFs because we don’t know when, where, or why markets will recover, and trying to time the market is a fool’s errand. It’s like getting on an airplane after it has taken off; it’s impossible. Rather than selling stocks when they fall, follow your financial plan, think long-term, and buy the dip.

Success is a result of consistent practice of winning skills and actions. There is nothing miraculous about the process. There is no luck involved. ~ Bill Russell

August 1, 2022

Bill Parrott, CFP®, is the President and CEO of Parrott Wealth Management, located in Austin, Texas. Parrott Wealth Management is a fee-only, fiduciary, registered investment advisor firm. Our goal is to remove complexity, confusion, and worry from the investment and financial planning process so you can pursue a life of purpose. Our firm does not have an asset or fee minimum, and we work with anybody who needs financial help regardless of age, income, or asset level. PWM’s custodian is TD Ameritrade, and our annual fee starts at .5% of your assets and drops depending on the level of your assets. We have waived our financial planning fee for the remainder of the year, so your cost is $0.00.

Note: Investments are not guaranteed and do involve risk. Your returns may differ from those posted in this blog. PWM is not a tax advisor, nor do we give tax advice. Please consult your tax advisor for items that are specific to your situation. Options involve risk and aren’t suitable for every investor. I like watching Shark Tank, and Wall Street was one of my favorite movies. I’m a Los Angeles Lakers fan, but I always admired the Celtics and Bill Russell.


[1] DFA Returns Web