At a recent conference, retirement experts concluded that the lack of an easy drawdown mechanism in 401(k) plans was the major challenge facing the 401(k) system. In 2014, the Treasury Department and the IRS issued guidance that made longevity annuities accessible to 401(k) plans and that enabled target date funds to include annuity contracts either as a default or as a regular investment option. But individual plan sponsors feel under siege by lawsuits and see little payoff to being innovative. At the same time, Congress is unlikely to mandate that annuities be a part of 401(k) arrangements. So we are at a standstill. Millions of Americans — having been told that their retirement plans are automatic
Shares of luxury fashion brand Vince (NYSE: VNCE) tumbled nearly 40 percent Friday, after the company said it has "substantial doubt" about its ability to continue as a going concern for the next 12 months. Its warning comes roughly one month after struggling department store Sears (NASDAQ: SHLD) made the same statement in its annual filing with the Securities and Exchange Commission. A change in accounting regulations that went into effect during the first quarter now requires management teams to assess whether there are "conditions or events" that raise substantial doubt about their company's ability to stay in business for the next year.
Shares of master limited partnership Enbridge Energy Partners (EEP) were rising nicely Friday after the crude pipeline operator concluded a long-anticipated strategic review and announced a 40% distribution cut. It is also selling off its Midcoast gathering and processing business for $2.15 billion, which includes over a billion in cash plus debt of Midcoast Energy Partners (MEP). It also redeemed preferred stock and changed its incentive distribution rights.