Forward-looking financial statements are associated with many significant financial transactions. Credible financial projections are particularly important when a business encounters financial difficulty, and frequently become a necessary condition of forbearance by a creditor, or of new or additional financing by an investor. Since the finance and accounting areas of middle market companies are usually overworked… Read More >
News & Insights
Insights on Tax Deferred Accounts
I. Overview We are frequently asked by clients if they should pay for IRA related fees out of their IRA account or out of their checking account. At first, the answer appears simple: why would someone want to effectively reduce their IRA contribution by the amount of the fee deducted from the account? It turns… Read More >
PW&Co Named NABCAP Premier Advisor 2013
Porter White Investment Advisors, Inc. is pleased to announce that it has again been included in the Premier Advisor List of the National Association of Board Certified Advisory Practices (NABCAP). Porter White is unusual in its ability to provide middle-market investment banking services (including valuation and capital raises) in addition to investment management services. The… Read More >
Should Spend Rates Be Reduced?
I. Introduction In an investment commentary published a year ago, we examined the cost of locking in a fixed stream of payments and found that the price of guaranteed returns had increased. Unfortunately, real interest rates have continued to fall and guaranteed returns are now even more expensive. Figure 1: 10-Year US Treasury Rates (Real)… Read More >
PW&Co Managing Whitecap AL Funds
PW&Co is pleased to announce that it is now acting as the Alabama Manager for the Whitecap Alabama Growth Funds I and II. In this role, PW&Co will provide two members of Whitecap’s five member Investment Committee and will be responsible for sourcing new CAPCO investments in the State of Alabama, as well as managing… Read More >
Pictures of Risk and Return
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 charts “Pictures of Risk and Return.” I. Purpose Pictures graphically illustrates the performance of different… 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 regard to business succession, management of personal assets, or estate planning in response to the… 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 bracket will revert to 20% from its current 15% level. Many investors are asking whether… 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 the stock market!!!” We concluded that this promise was not too good to be true,… Read More >
PWCo Listed as NABCAP Premier Advisor 2012
Porter, White & Company is pleased to announce that it has again been named on the National Association of Board Certified Advisory Practices (NABCAP) Premier Advisor List. Porter White was also listed in the Birmingham Business Journal’s Book of Lists, where it is ranked in two other financial areas: Financial Planners (13th) and Investment Brokerage… Read More >
PWCo Advises Tech Firm in $11M Funding Deal
Porter, White & Company acted as financial adviser to NthDegree Technologies Worldwide, which raised $11.2 million in financing from existing investors and new investors identified by the Birmingham firm. NthDegree is a Tempe, Ariz.-based technology startup that makes conductive ink and printed semiconductor products. To see more details in an article in the Birmingham news,… 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 their assets. The short answer to the question, “What to do about the IRA Double… 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 client return goals can still be accomplished with the client’s current asset allocation. In some… Read More >
Jim White Weighs in on Economic Recovery
Jim White gives his perspective on economic recovery in this Business Alabama interview.
Porter White & Company Announces Name Change
I am writing to inform you of the change in the name of our registered investment advisor from PW Advisers, Inc. to Porter White Investment Advisors, Inc. This is only a change of name, everything else remains the same. As a small firm with multiple lines of business, we sometimes struggle to explain what we… Read More >
PWCo Assists Huntsville Construction Co. Sale
Porter, White & Co. assisted in the sale of Pearce Construction, a Huntsville-based general contractor, to senior members of its management team.
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 500 Index opened down and fell over 3% on the Monday morning after the news… 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 memory, many are wondering if the S&P 500 has recovered.[1] Unfortunately, as of this writing,… Read More >
