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Parrott Wealth Management Annual Letter

Despite political turmoil, Delta, Omicron, rising interest rates, increasing inflation, supply chain issues, and several corrections of 4% or more, the three major US indices produced significant gains last year, led by the S&P 500 as it climbed 27...

Crank Up Your 401(k)!

by Bill Parrott on

January is an excellent time to crank up your 401(k) plan, and it probably needs a refresh after a year of gains, dividends, interest payments, and contributions. Here are a few suggestions to help you get started.

  1. Increase your annual contribution amount if you're not adding the maximum amount...

Interest rates are near historical lows, so does it make sense to pay off your mortgage? Eliminating debt is satisfying, but should you sell stocks or bonds to make it happen? Let's explore a few options.

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Pay off your mortgage

  1. If your cash balance at your bank is high, it's wise to pay off...

The Year in Pictures

by Bill Parrott on

I loved reading the Year in Sports by Sports Illustrated as a kid. It was a collection of their best pictures from the previous year and required reading for my cohort of friends. So here is a look at how markets, investments, and economic indicators performed last year.

The S&P 500, Dow Jones...

22 Ideas for 2022

by Bill Parrott on

Happy New Year! It's hard to imagine it's 2022, but here we are. Below are twenty-two ideas you can incorporate to make next year your best investment year ever!

  1. Create a spending plan so you can spend with confidence. Review last year's bank and credit card statements to see if there are...

What Are the Odds?

by Bill Parrott on

Probabilities are intriguing, and that's why I'm attracted to investing.  I like math, statistics, and games of chance. My first introduction to averages and percentages was reading the Los Angeles Times while pouring over the baseball box scores. Later in life, my friends and I tested our math...

Five Investment Ideas for 2022

by Bill Parrott on

The S&P 500 is up 21% for the year, but it's limping to the close. The Omicron variant and rising inflation have forced some investors to the sidelines. US stocks, especially large-cap growth stocks, have been stellar investments for the past few years, but will this trend continue? Below are my...

Several years ago, I was running through an airport to catch an earlier flight home when I realized I was carrying my Swiss Army Knife I had owned since 1985.  Rather than lose my knife, I checked my bag and opted for a later flight.

A Swiss Army knife is an invaluable tool. The knife's...

Ready. Set. Go. The New Year is approaching fast, and it's time for investors to map out a course for success. 2021 was another banner year for stocks as the S&P 500 soared more than 25 percent despite political unrest, the Omicron Variant, escalating inflation, and rising interest rates. The market...

Everybody Loves a Parade!

by Bill Parrott on

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...

How to Survive a Stock Market Crash

by Bill Parrott on

The Dow Jones Industrial Average traded to all-time highs before the Omicron variant spooked investors. In less than two weeks, the Dow fell about 7%. Stock market corrections are common, occurring nearly every three to five years and lasting approximately 18 months, while a bull market runs for...

Can You Do Nothing?

by Bill Parrott on

It's hard to do nothing and harder to disconnect in a connected world. If you have children, you've probably heard them say: "I'm bored; there's nothing to do!" If you want to see how hard it is to do nothing, turn off everything around you and close your eyes for ten minutes. Welcome back. How'd...