Everybody Loves a Parade!
The 133rd Rose Parade will ring in the new year, a rite of passage for many. I grew up watching the Rose Parade with my friends. We arrived at the parade route around 4:00 or 5:00 the night before to stake our claim to spend the night to get choice seating and then spend the next twelve to sixteen hours enjoying the craziness on Colorado Boulevard.
It wasn't until years later that I realized the Rose Parade doesn't happen without proper planning. It takes years for it all to come together, and volunteer members must choose themes, bands, and grand marshalls years in advance. And I'm sure the Tournament of Roses Parade Committee is already planning the 2023 Rose Parade.
Profitable investing requires proper planning. As we march toward the new year, here are a few ideas to help you enjoy investment success.
- Plan. In January, you have an opportunity to start fresh, out with the old and in with the new. The beginning of the year is an ideal time to plan your investments, and a financial plan can help you improve your results, organize your financial life, quantify your goals, and set a course for your future.
- Help. A parade doesn't run itself. The Tournament of Roses has thirty-one committees doing countless activities, and committee members focus on their specific duty while keeping an eye on the result. Members contribute more than 80,000 hours of their time to ensure the parade is successful. Do you need help with your investments? Planning? Taxes? If so, consider hiring a team of financial professionals.
- Diversify. Bands, floats, and horses make for an entertaining parade. Diversification is vital for the parade's success because it has something for everyone. A diversified portfolio allows you to participate in multiple markets while owning thousands of securities like stocks, bonds, and cash.
- Time. The parade covers five and a half miles, meandering through Pasadena, and the stroll allows spectators to get a good look at the participants. Your investment horizon may cover several years, and a patient, a long-term investor, will be rewarded.
- Vision. The first Rose Parade occurred in 1890, and the founders had a dream, and it has benefited generations of parade-goers. Will your investment portfolio benefit generations?
I almost forgot. In addition to the parade, there is also a football game.
Happy New Year!
A rose by any other name would smell as sweet. ~ Shakespeare
December 11, 2021
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 our clients 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.
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.