Advice for Savvy Retirement Planning

Pfizer Has Officially Scrapped it’s Merger Agreement with Ireland’s Allergan

Mount St. HelensWhat would have been the largest pharmaceutical merger in history – one between U.S.-based Pfizer and Ireland-based Allergan – has officially been scrapped. It was a deal that would have merged two pharma giants in a $160 billion mega-deal. Amidst the controversy surrounding so-called “tax inversions” President Obama has been working feverishly to put in place disincentives for any deal which aims to relocate a corporate headquarter to a more tax-friendly haven. In a statement today, Pfizer said:

“Pfizer today announced that the merger agreement between Pfizer and Allergan plc (NYSE: AGN) has been terminated by mutual agreement of the companies. The decision was driven by the actions announced by the U.S. Department of Treasury on April 4, 2016, which the companies concluded qualified as an “Adverse Tax Law Change” under the merger agreement.”

Pfizer will be required to pay Allergan a $150 million break-up fee to compensate them for the costs associated with the scrapped deal.

The new tax-inversion rule proposed by the U.S. Treasury would make tax inversion deals such as the Pfizer-Allergan merger less economically attractive.

The Treasury Department didn’t identify Pfizer’s deal in their statement on Tuesday, but US Treasury Secretary Jacob J. Lew said:

“Treasury has taken action twice to make it harder for companies to invert. These actions took away some of the economic benefits of inverting and helped slow the pace of these transactions, but we know companies will continue to seek new and creative ways to relocate their tax residence to avoid paying taxes here at home.”

The announcement sent shares of Pfizer up nearly 1% in early trading Wednesday morning, while U.S. shares of Allergan rose over 1.5%.

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About Robert Henderson and Lansdowne Wealth Management

Robert Henderson is the President of Lansdowne Wealth Management, an independent, fee-only advisory firm in Mystic, CT. His firm specializes in financial planning and investment management for retirement, with a special focus on the particular needs of women that are divorced or widowed. He is an Accredited Asset Management Specialist and a Certified Divorce Financial Analyst. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog, The Retirement Workshop at http://lwmwealth.com/blog and the firm’s website at http://www.lwmwealth.com.

If you are an employee or retiree of General Dynamics, Pfizer, or L&M Hospital, and you would like advice and direction on managing your Fidelity 401K or Hewitt 401K plan, please sign up for our monthly newsletter, which provides complimentary ongoing advice, commentary, and model portfolios for each of those plans. You can sign up automatically at Your 401K http://www.lwmwealth.com/services/your401k.html.

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Pfizer 401K Connection Newsletter – November 2012

401KHere is the November 2012 issue of the Pfizer 401K Connection newsletter. The Pfizer 401K plan is administered by Fidelity Investments.

The 401K Connection Newsletters are independent evaluations of 401(K) plans that help participants better understand their retirement accounts, the many investment options available to them, and provide them with model portfolios that they are free to follow and emulate at their discretion.  The newsletters are in no way affiliated with General Dynamics, Pfizer, L&M Hospital, or any of their affiliates. They are 3rd party newsletters provided for no cost to assist employees with better understanding and managing their 401K plans. Lansdowne Wealth Management is an independent wealth management firm that has no affiliation to General Dynamics, Pfizer, or L&M Hospital, nor the administrators of their 401K plans, Fidelity and Hewitt & Associates.

Around the first week of each month, subscribers receive our newsletter, customized to their employer (currently General Dynamics, Pfizer, or L&M Hospital). The newsletters are chock-full of useful information to help manage their 401K plan, including market & economic updates, analysis of your retirement plan, feedback on the various investment options, and model portfolios that are developed by our firm using the same strategies and philosophies we utilize for our own private clients. In addition, periodically you will receive articles written by our firm that can be useful in managing other aspects of your financial life, in addition to your 401K. The articles can always be accessed at our blog as well – http://lwmwealth.com/blog/.

To sign up for one of the newsletters, please go here:  http://www.lwmwealth.com/services/your401k.html

Pfizer 401K Connection Newsletter – September 2012

401k Nest EggHere is the September 2012 issue of the Pfizer 401K Connection newsletter.

The 401K Connection Newsletters are independent evaluations of 401(K) plans that help participants better understand their retirement accounts, the many investment options available to them, and provide them with model portfolios that they are free to follow and emulate at their discretion.  The newsletters are in no way affiliated with General Dynamics, Pfizer, L&M Hospital, or any of their affiliates. They are 3rd party newsletters provided for no cost to assist employees with better understanding and managing their 401K plans. Lansdowne Wealth Management is an independent wealth management firm that has no affiliation to General Dynamics, Pfizer, or L&M Hospital, nor the administrators of their 401K plans, Fidelity and Hewitt & Associates.

Around the first week of each month, subscribers receive our newsletter, customized to their employer (currently General Dynamics, Pfizer, or L&M Hospital). The newsletters are chock-full of useful information to help manage their 401K plan, including market & economic updates, analysis of your retirement plan, feedback on the various investment options, and model portfolios that are developed by our firm using the same strategies and philosophies we utilize for our own private clients. In addition, periodically you will receive articles written by our firm that can be useful in managing other aspects of your financial life, in addition to your 401K. The articles can always be accessed at our blog as well – http://lwmwealth.com/blog/.

To sign up for one of the newsletters, please go here:  http://www.lwmwealth.com/services/your401k.html