The most important decision made by an investor in marketable securities is how to allocate investment capital among debt and equity. To help our investment advisory clients make the debt-equity decision, we present information in thought-provoking formats, such as the… Read More >
What’s My Company Worth?
Most owners of private businesses think about the value of their businesses from time to time. Business value is not just a measure of accomplishment for an owner-entrepreneur. It is an important factor in planning for the future, whether with… Read More >
Capital Gains Tax Increase
With the re-election of President Obama, additional Medicare taxes on capital gain income will almost certainly go into effect in 2013. The “Bush Tax Cuts” are also set to expire and it is possible that the highest capital gains tax… Read More >
Guaranteed Return Now More Expensive
In our investment commentary entitled, “Can Investors Have Their Cake and Eat It Too?,” written two years ago, we examined whether the following promise was too good to be true: “GUARANTEED return of your investment PLUS a return linked to… Read More >
What to do About the IRA Double Tax Hit
Individual Retirement Accounts (IRA’s) offer years of tax-deferred growth but can be double-taxed (under both estate and income tax law) at the owner’s death. Individuals should assess their goals and circumstances in planning how to maximize the after-tax value of… Read More >
Consider Allocating to the Utilities Sector
As of February 2012, the low yield environment of the bond markets has lowered the expected return of fixed income securities as an asset class. Lower expected return for the fixed income asset class has necessitated a reassessment of whether… Read More >
What To Do Now – Rebalance?
During the past week, the US government narrowly avoided default on its obligations, the financial markets declined precipitously on poor economic news, Standard & Poor’s downgraded its credit rating on the US debt from AAA to AA+, and the S&P… Read More >
Market Recovery Update – Are We There Yet?
After falling just over 50% from its peak in October 2007, the S&P 500 has posted strong gains since the market low in March 2009. While the market meltdown in late 2008 and early 2009 is now becoming a not-so-recent… Read More >
A Paycheck for Retirement
For many people nearing or planning for retirement, the key question is: How do I replace my paycheck? Will my retirement savings be sufficient? How much can I withdraw each month? How many assets do I need to cover the… Read More >
How Bond Portfolios Lose Money & Bounce Back
In this commentary, we explore the underlying mechanics of what goes on inside a bond fund and how its price changes over time if interest rates experience a one-time increase. I. Introduction Interest rates are at historic lows, and while… Read More >
Creating Equity Portfolios
The white paper, “Creating Equity Portfolios,” poses the question “Why do we recommend certain equity allocations?” The paper reviews the nuts and bolts of diversification and the factors we consider in forming equity portfolios. By considering data and research on… Read More >
Selecting Asset Classes for Portfolios
Research has shown that selection of asset classes is the most important factor in determining the variation in returns of an investment portfolio across time and among portfolios. This paper reviews PW&Co’s approach to selecting asset classes for inclusion in… Read More >
Interest Rate Expectations
Having experienced a period of falling rates that have positively influenced the return on bonds, many people are worried about the prospects that interest rates will increase. We do not believe that we can profit by predicting interest rates or… Read More >
Investment expenses can be a significant drag on investment performance. Some investment expenses are easily identified, and others are hidden from view. Authoritative studies of total investment expenses are scarce. The following table presents estimates developed by William J. Bernstein,… Read More >
The government started issuing Treasury Inflation Protected Securities (TIPS) in March, 1997 to offer investors protection from unexpected increases in inflation. Since inception in March, 1997, the Barclays Capital US TIPS Index has returned 6.5% per year versus 6.2% per… Read More >
Investment Management Process
PW&Co uses a four step investment process to understand, analyze, implement and monitor a client’s investments. Our process is continuous and focused on responding to changes in a client’s circumstances, not the inevitable fluctuations in the financial markets. I. Evaluation… Read More >
Investment Management: What Do We Do?
People often wonder if we don’t pick individual stocks or money managers that can beat the market, what do we do? We believe that there are a number of other things that are more important to managing investment accounts and… Read More >
Our investment philosophy is based on a few guiding principles. Risk and Return are Related. Markets are relatively efficient; to achieve higher returns, one must take more risk. Risk as a Focus. Choice of investments should be based on ability to… Read More >