M & A wrap: Groupon scales back IPO
Groupon plans to raise as much as $540 million in an initial public offering, less than previously planned, as the daily deals website grapples with a weak equity market, executive departures and questions about its accounting and business model.
Saab moved closer to collapse on Friday as its owner rejected the latest rescue proposal from reluctant Chinese investors and its court-appointed administrator said the Swedish carmaker lacked the cash to carry on.
Scandal-hit Japanese firm Olympus gave in to shareholder pressure over massive fees paid to advisers in a 2008 acquisition, announcing it would set up a third-party panel to examine its past M&A deals.
“A growing number of large companies are challenging the synergy gospel by spinning pieces of their business off into independent entities,” reports Fortune.
For your morning distraction: Occupy Tatooine
Your retirement rollover decision could save you thousands
Â
In the two decades that Ive been covering personal finance, IÂve worked for three big companies. I like to practice what I preach, like in the video above, where I explain some simple ways that you can manage your 401(k) when you change jobs and potentially save yourself more than $60,000 in about 30 minutes.
The backstory that you donât catch above is this:
IÂve participated in the 401(k) at each employer Iâve worked at over the years, contributing the most money I could afford and always meeting the threshold to get the prized company match.
But on my way out the door, IÂve always taken my money with me, rolling over my hard-earned retirement funds into another qualified investment opportunity.
Workers have some choices when they leave a job. They typically can leave assets with the former employer, move it to an IRA or roll it into a 401(k) plan at their new job. (They also could cash it out  something I donÂt recommend because of the tax penalties and itÂs supposed to be there for retirement.)
When I left my last job, I rolled my retirement funds into the Thomson Reuters 401(k). There are a few reasons why: For one thing, I like the control you get when you move your money around. A previous employer offered weak investment choices, most of which were actively managed funds that lagged their peers.
In addition, when you consolidate your 401(k) savings, itÂs a lot easier to keep track of your money. DonÂt forget, the typical American will have 11 jobs in his or her lifetime. The idea of having 11 different retirement accounts terrifies me.
ItÂs not hard to roll your 401(k) savings into a new account, but that doesnÂt mean workers do it as often as they should. According to a recent Harris Interactive survey commissioned by ING DIRECT, nearly 30 percent of people who left a retirement account behind at a previous employer claim:
* They plan to roll it over but havenÂt found the time
* HavenÂt decided where to roll it over
* ArenÂt sure how to roll it over
* Or have simply forgotten about their old 401(k).
Rollovers give you a lot more flexibility, too. For example, if you move your savings into a 401(k) plan, you can take a loan  assuming you meet the requirements. Now, IÂm not saying you should tap your retirement account like an ATM. In fact, I recommend that you donÂt. But, given the shaky economy, itÂs nice to know the money is available, if you need it.
There are plenty of motives to sock extra money away into a 401(k), but the real reason I decided to add my retirement savings to my employerâs plan is that the investment options are stellar. Our plan gets high marks from Brightscope, which ranks company 401(k) plans. It has rock-bottom fees (IÂm a cheapskate) and excellent investment options.
Because I cover personal finance, people always assume IÂm an active investor. In truth, IÂve staked the bulk of my retirement savings on one fund, the BlackRock LifePath 2030 fund. This all-in-one portfolio uses a mix of index funds focusing on U.S. stocks, emerging markets stocks, REITs and other market sectors. It is designed to reduce exposure to stocks while increasing cash and bond holdings as you approach retirement age. For all of that expertise, I pay a mere 0.35 percent of assets annually, which is about a percentage point cheaper than if I went to a big brokerage house and bought the fund through an adviser.
Thankfully, there isnÂt much paperwork involved in a rollover. And in my case, it took less than two weeks for the rollover money to show up in my 401(k).
Â
Â
Innkeepers, Cerberus trial delayed to Oct. 20
A lawyer for Innkeepers announced the latest delay after
the parties met privately on Wednesday morning with Judge
Shelley Chapman in U.S. Bankruptcy Court in Manhattan. No
specific reason was given for the postponement.Cerberus and Chatham in August walked away from a $1.12
billion purchase deal, citing a clause in the contract that
they contended gave them the right to back out if an event
occurred that could have an adverse effect on Innkeepers’
business.The case is Innkeepers USA Trust et al v. Cerberus Series
Four Holdings LLC et al, U.S. Bankruptcy Court, Southern
District of New York, No. 11-2557.The Innkeepers bankruptcy is In re Innkeepers USA Trust, in
the same court, No. 10-13800.
