- Financial Planning
- Portfolio Management for Individuals & Small Businesses
- Selection of Others Advisors
Types of Clients
- Individuals (Not High Net Worth)
Individuals High Net Worth
*>=750k in Investable Assets or >=1.5m of Estimated Total Net Worth
Available Fee Structures
- Percentage of Assets Under Management (AUM)
- Fixed Fees (Other than subscription)
Parrott Wealth Management, LLC Overview
Parrott Wealth Management, LLC is an investment advisory firm based in Austin, TX. Founded in 2021, this firm has a fee-only fee arrangement, meaning that they are compensated solely through the fees charged for their services. Customers do not need to worry about hidden charges or commissions with this type of fee arrangement. As an investment advice only firm, Parrott Wealth Management specializes in providing personalized financial planning and portfolio management services to both individuals and small businesses. They offer various investment strategies and advice on how to best manage your investments to maximize your returns. In addition to their own services, Parrott Wealth Management assists customers with selecting other advisors when necessary. They partner with other firms to help clients access specialized solutions that are beyond their scope of expertise. This investment advisory firm is committed to providing their customers with a comprehensive approach to financial wellness and wealth management.
PARROTT WEALTH MANAGEMENT, LLC is a prestigious firm that caters to a range of clients seeking financial guidance and advisory services. Their client base is diverse and their expertise extends to serving both individual investors and high net worth individuals. The firm takes pride in their ability to tailor their services to match the unique needs of each client, providing personalized investment strategies and advice. When it comes to the fee structure, PARROTT WEALTH MANAGEMENT, LLC offers two primary options based on the services provided. For clients who prefer to have their assets managed on an ongoing basis, the firm charges a percentage of assets under management (AUM). This fee structure incentivizes the firm to generate higher returns, as the management fee increases in proportion to the growth in AUM. Alternatively, for clients who prefer a more hands-on approach to managing their assets, PARROTT WEALTH MANAGEMENT, LLC offers fixed fees. This option is ideal for those who want to receive advisory services on an as-needed basis, without committing to an ongoing investment management relationship. Overall, PARROTT WEALTH MANAGEMENT, LLC is committed to providing flexible and transparent fee structures that align with their clients' needs and objectives.
Typical Clients, Fee Structures & Investment Minimum
According to Parrott Wealth Management, LLC's Part 2 Brochure, there is no mention of an investment minimum.
How This Office Can Help Austin, TX Residents
Parrott Wealth Management is a financial planning and investment management firm that helps clients in Austin, TX navigate the complexities of their financial lives. Their team of experienced professionals offers a range of services, including retirement planning, investment management, tax planning, and estate planning. They work closely with each client to develop a personalized financial plan designed to meet their unique needs and goals, whether that be saving for retirement, building wealth, or protecting their assets. As a resident of Austin, TX, one might face a variety of financial situations, such as navigating the high cost of living in the city, paying off student loans, or saving for retirement while managing student loan debt. Additionally, with the robust job market in the city, individuals may be looking for ways to maximize their income and investment opportunities. At Parrott Wealth Management, clients can expect personalized financial advice and investment strategies designed specifically for their unique financial situation, helping them to achieve their financial goals and find financial security in a rapidly changing world.
Services Offered by Parrott Wealth Management, LLC
Core Advisor Services
Financial planning services encompass the process of devising strategies for your future financial well-being, including preparing for events such as retirement, funding your child's college education, or planning for the transfer of assets.
Portfolio Management for Individuals & Small Businesses
Portfolio management entails the careful selection and strategic management of investment combinations tailored to meet the needs of individuals and small businesses.
Market Timing Services
Market timing services involve the endeavor to generate short-term profits from investments by capitalizing on opportunities to buy at low prices and sell at high prices.
Selection of Other Advisors
The firm provides support in selecting and engaging other advisors who possess specialized expertise to complement your financial needs.
Publication of Periodicals or Newsletters
The firm engages in the dissemination of diverse financial educational materials through the publication of periodicals.
Educational Seminars & Workshops
The firm organizes and conducts seminars or workshops aimed at enlightening investors on various financial concepts.
Financial advisory fees usually are based on the services provided. Fee types charged by Parrott Wealth Management, LLC most likely consist of the following fee types: asset-based, hourly or fixed. Wrap fee programs, or the practice of bundling services for a single fee, are not offered by the firm.
Percentage of Assets Under Management (AUM)
This fee structure charges a percentage of the assets under management by the firm. Fee structures are often tiered based on the amount of assets managed, with higher AUM often charged a lower rate.
Between 0.50% and 2.00% of assets under management (annually), often lower for a robo advisor. Fees are typically charged quarterly by the firm and will show on your investment statement. View typical advisor costs here.
~96% of registered firms offer this fee structure.
If you have $1 million managed by a firm at a 1% management fee, you would be charged $10,000/year to manage your assets (or $2,500 per quarter). This would be automatically deducted from your investment portfolio.
Fixed Fees (Other than subscription)
Fixed fees are a one-time, lump-sum payment rendered for a specific service, such as creating a financial plan without ongoing management or implementation. This option is beneficial if you solely require guidance for a particular objective rather than a long-term consultancy or asset management.
Fixed fees for creating a financial plan often range from $1,000 to $3,000.
~49% of registered firms offer this fee structure.
If you did not want a firm to manage your assets but needed to create a retirement plan, life transition plan such as divorce or loss of a spouse, estate transition plan, business financial plan, or any other financial planning, you could consult with an RIA firm to help you with the creation of that plan.
Similar to an attorney, a financial consultant might charge fees based on hourly rates. This fee structure can be advantageous when seeking specific or ad hoc advice.
Charges generally span from $150 to $400 per hour, depending on the extent of the services required.
~33% of registered firms offer this fee structure.
If you needed hourly consulting to sell a business or transfer your estate to your children but did not want your assets managed by a firm, you could consult a firm at an hourly rate to answer any questions you may have.
Subscription (Newsletter or Periodical)
Occasionally, advisors are compensated through commissions by selling certain financial products, such as mutual funds or life insurance policies, or as a broker-dealer by facilitating the buying and selling of securities. Advisors who receive commissions may be incentivized to make specific suggestions to clients in order to secure a commission. Advisors who operate on a fee-only basis do not earn commissions, whereas fee-based advisors may do so.
Often 3% - 6% of the value of the security.
Only ~3% of registered firms say they offer this fee structure, but other advisors may receive “soft dollars”. Many mutual funds charge 12b-1 fees to cover the promoting and selling of the fund’s shares. While your advisor does not charge these fees, they may receive a kickback for recommending the investment.
An advisor selling their client on a life insurance policy and receiving a commission on the sale of that policy, or recommending a specific investment and receiving a kickback for that recommendation.
Advisors typically obtain performance-based fees if a portfolio surpasses a predefined benchmark. This fee is determined through various methods, but is most commonly assessed as a percentage of investment gains. Performance-based fees may incentivize advisors to undertake riskier decisions in pursuit of generating higher returns.
“Two and Twenty” is common among hedge funds with a 2% management fee and a 20% incentive fee above the “hurdle rate,” or performance threshold the fund is compared against.
32% of registered firms offer this fee structure.
20% of fund growth in excess of S&P 500’s 7% growth for that year = 15% hedge fund growth - 7% S&P 500 growth = 8% difference x 20% = 2% performance fee (in addition to the management fee).
Types of Clients
*The Securities & Exchange Commission defines someone as “high net worth” if they have $750,000 or more in investable assets or $1.5M of estimated total net worth.
Other Office Locations
This firm has no other locations.
Parrott Wealth Management, LLC is registered to service clients in the following states:
Parrott Wealth Management, LLC does not have any disclosures. Please visit it's Form ADV for more details.