Foundations

by Bill Parrott on

A home built on rock can withstand countless storms.

Most people, I think, would agree building a home on solid ground makes sense. Today, if a home doesn’t have a solid foundation, like rock, a builder will fortify it with cement, rebar, steel, or some other material to make sure it stood for...

Life Sentence

by Bill Parrott on

In Shawshank Redemption, Andy Dufresne was sentenced to life in prison for a murder he didn’t commit. He declared his innocence and spent hours digging a hole in his cell wall, so he could eventually escape. On a stormy night he finally escaped through the tunnel he dug to enjoy a life of freedom on...

The Mechanics of Moving Money

by Bill Parrott on

For the past forty years or so, you’ve worked hard and, hopefully, saved a few dollars. While working, you probably contributed a portion of your pay to your 401(k), IRA, or investment accounts. Now what? Yesterday you were working, today you’re retired. It’s now time to enjoy the fruits of your...

Where Do Stock Returns Come From?

by Bill Parrott on

Peanut butter and jelly. Thelma and Louise. Calvin and Hobbes. Fish and Chips. Wayne and Garth. Some things are better in pairs!

Stock returns consist of two components: dividends and price appreciation. Dividends are paid to shareholders on a quarterly basis from the company’s profits regardless...

Lodestar

by Bill Parrott on

Lodestar is the new buzzword for the year. It recently appeared in an anonymous New York Times Op-Ed article: “We may no longer have Senator McCain. But we will always have his example — a lodestar for restoring honor to public life and our national dialogue.”[1]

What is a lodestar? According to...

Steak Dinners

by Bill Parrott on

About twice a month I receive an invitation to a steak dinner at a local restaurant from two different investment firms. These firms are offering retirement planning seminars to make sure I don’t run out of money during my golden years. 

As I scan their elaborate mailers, I drop my eyes to the...

Can You Save $500 Per Month?

by Bill Parrott on

Saving money shouldn’t be difficult, but it is. Trying to find a few extra nickels to save at the end of each month is a challenge, but is it possible for you to find an extra $500?

Professionals often recommend strategies to help you reduce your expenses. Some of the more popular suggestions...

What’s Your Home Worth – Right Now?

by Bill Parrott on

Did you check the price of your home today? Did you get a text on your phone that your home appreciated 5%? Did the commentators on CNBC mention it on TV?

Zillow, and a few other real estate sites, let you check the price of your home daily. When the value rises, do you call your real estate agent...

Losers

by Bill Parrott on

The Washington Generals have been playing basketball since 1952. During their tenure they’ve won three games, one in each of the following years – 1954, 1958 and 1971.[1] Despite their lackluster output they repeatedly play in front of sold out crowds at over 450 events per year. Why? It’s because...

Los Angeles to New York

by Bill Parrott on

The sound of a train whistle piercing the night sky conjures up images of distant lands and the rhythmic clickety-clack of the wheels on the track is therapeutic.  

Riding a train from Los Angeles to New York is an exciting way for passengers to see our amazing country. If a passenger boards the...

Funding Secured

by Bill Parrott on

On August 7, Elon Musk tweeted: “Am considering taking Tesla private at $420. Funding secured.” His tweet caused a storm on Twitter and in the stock market. At the time of his tweet, Tesla shares were trading around $343 per share before soaring to $387. Since the tweet, it has traded in a range of...

Sears or Turkey?

by Bill Parrott on

Every now and then a small country seeps its way into our financial engine. A few years ago, it was Greece, today it’s Turkey. Turkey is in crisis with the Lira falling 30% and its stock market dropping 17%.[1] The Turkey ETF (TUR) is down 50% for the year and it is inflicting havoc on emerging...