Walgreen May Ditch US for Switzerland

One of the main themes for the markets this year has been the number of companies taking advantage of cheap capital to make mergers & acquisitions.  According to Dealogic, $1.83 trillion was spent on mergers & acquisitions in the first six months of the year, the highest level since the first half of 2007.  Despite the impressive flow of deals, perhaps what is more interesting is the amount of cross-border deals taking place, which was $626.3 billion in the first six months of 2014, up 84% from 2013.  Many US-based companies are using their cash held overseas to buy international companies and then relocating headquarters overseas to lower their tax burden, which is a disturbing trend.  Read the article below to read how an iconic US brand may be moving its headquarters overseas.

Scott Smith
C&J Wealth Advisors
Article credits 7/16/2014 | By MSN Money Partner | Paul Ziobro | The Wall Street Journal

Walgreen May Ditch US for Switzerland
The move, known as an inversion, has never been attempted by a major American retailer.

Walgreen’s (WAG) first pharmacy opened 113 years ago inside a hotel on Chicago’s South Side and this year, the chain will derive nearly all its sales and most of its profits from its 8,700 U.S. locations.

Destination Switzerland

But Walgreen is currently thinking about leaving American shores, as part a plan to buy the rest of Alliance Boots GmbH, which operates a U.K. drugstore chain and is based in Switzerland.

The move could help Walgreen lower its U.S. tax bill saving the company hundreds of millions of dollars a year — money that wouldn’t flow into the U.S. Treasury.

If it goes ahead, it would be an unusual use of the controversial and complex maneuver known as an inversion. While well tested among pharmaceutical and manufacturing companies that earn much of their income overseas or have assets like patents that are held offshore, the move has never been attempted by a major U.S. retailer, according to tax experts.

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Getting Rolled by IRA Rules

Article Credits: The Wall Street Journal | May 10, 2014 | By Laura Saunders | Courtesy of Ed Slott and Company

IRA Rollover

A recent Tax Court decision changes the landscape. Here’s what you need to know

A veteran tax lawyer argued his own case in U.S. Tax Court about an individual-retirement-account maneuver that long had been blessed by the Internal Revenue Service

He lost, and now all IRA owners face dangers they didn’t before.

The decision in the case, Bobrow v. Commissioner, issued earlier this year, has prompted experts to sound warnings. “People need to be extremely careful, because there’s no forgiveness for this new mistake,” says Ed Slott, an IRA consultant in Rockville Centre, N.Y.

The issue in question involves what is called an IRA rollover. In this maneuver, a taxpayer withdraws assets from a regular IRA or Roth IRA and redeposits them into a similar account within 60 days. During that period, he or she can use the money without owing taxes or penalties.

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4 Popular Retirement Myths Debunked

This is an interesting article discussing phases of retirement, suggesting that the old standard of no work, all leisure is diminishing.  More retirees are becoming re-engaged to varying degrees so they can experience a healthier, more fulfilling retirement.

Scott Smith
C&J Wealth Advisors
Article Credits: Wall Street Cheat Sheet | by Eric Mcwhinnie | June 9, 2014  

Retired worker4 Popular Retirement Myths Debunked

The conventional idea of retirement is being challenged in the 21st century. A new analysis reveals that many commonly held beliefs about work in retirement are obsolete as life expectancy and aspirations improve.

Retirement is no longer being defined as a period of inactivity. According to Merrill Lynch and Age Wave, retirement now has four distinct phases: pre-retirement, career intermission, reengagement, and leisure. The reengagement phrase is the biggest surprise in the study, as three out of four pre-retirees older than 50 say their ideal retirement will include working in some capacity. Furthermore, money is not the biggest motivator for staying in the workforce.

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