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Parsec Q2 2021 Economic & Tax Webinar

Parsec President and Chief Investment Officer Bill Hansen discusses economic highlights from the second quarter of 2021. Parsec Co-Directors of Tax Services Larry Harris and Brad Burlingham review current estate and gift tax laws and discuss the Biden administration’s proposal as it currently stands. We end by answering your questions submitted during registration.

Please scroll down to watch the replay and see the presentation.

Ready, Set, Retire! - Parsec Financial - Retirement Planning

Roth vs. Traditional 401(k)

The differences between Roth and Traditional 401(k) extends beyond 401(k)s. To truly understand the benefits and differences, one should also consider Roth and Traditional IRAs.

Parsec Financial SRI FAQ

Socially responsible investing (SRI) is the practice of evaluating investments’ social or environmental impact as well as their traditional financial metrics. By doing so, investors hope to direct their money toward companies with sustainable business practices and, equally as important, away from companies who may commit social or environmental injustices.

Parsec Q1 2021 Economic & Portfolio Management Webinar

We recently hosted a webinar where our research team discussed key economic results from the first quarter of 2021 and trends to watch, our director of investment management explained our portfolio management process, and we answered questions submitted.

Financial Lingua Franca

For anyone new to investing (and even for those who are not so new) the financial terminology used by investment professionals can be unfamiliar and a bit confusing. When you sit down with an advisor to discuss your investment portfolio, there are several words and phrases that are likely to arise.

Generational Wealth Building Illustration

One way to strategically transfer wealth to your heirs and build generational wealth is through a strategic gifting plan. Here we illustrate how early contributions can compound into significant values over the recipient’s lifetime. Specifically, gifting $25,000 annually for the first 10 years may have an ending value of more than $14 million in 90 years. Moreover, starting at age 60 the recipient can spend 5% from this portfolio annually over the next 30 years for total distributions of more than $17 million. (Both figures are adjusted for 3% inflation.)

Note: Figures do not take into consideration underlying annuity or mutual fund fees, taxes or trading costs. Performance data depicts historical performance and is not meant to predict future results.

How Parsec Monitors Investment Securities

Parsec invests in a variety of securities for its clients. These may include mutual funds, exchange traded funds (“ETFs”), and individual stocks, among others. All of these investments can and do experience significant price pullbacks from time to time. While Parsec’s research committee focuses on investments it can hold for the long-term and performs significant due diligence before adding any new positions, price declines still happen. In this article we will discuss how we monitor investment securities and our process when a stock or fund does not perform as expected.

Portfolio Spending Illustration

This illustration shows a 5% spending from a portfolio of large US companies as illustrated by the S&P 500 index. The analysis assumes you spend 5% of the prior year-end balance, which starts at $1 million in 1970. This timeline includes a decade of weak market returns in the 1970s and then a historically bad decade of returns in the 2000s. Even with these tough market environments the balance ended 2020 at $12.8 million and produced portfolio spending of close to $11.8 million.

Source: Duff & Phelps, LLC. 2020 SBBI® Yearbook. Illustration assumes annual spending was taken at the beginning of the year. Past performance is no guarantee of future results. *Spending figures do not take into consideration inflation.

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