SHOULD WE REMOVE OUR RETIREMENT MONEY FROM AIG?
IS OUR RETIREMENT ACCOUNT GOING TO BE LOST IF AIG GOES DOWN?
Answers
4107 points
MNSL answered 2 years ago …
This is a good question.
We should remove if we see higher risk. We must try to put our retirement in a safe place in the future.
I do not have any faith on some of these top insuracne giants now.
Anything can happen. Even some of these giants can burst sooner than later.
I hope somebody will give better answer with more detials.
2820 points
Oldman answered 2 years ago …
MNSL asked a simiar question, which I believe I answered - in extenso- about this same point: whatever is registered to you...up to 500K is SIPC insured vs default by the insuror or trading company. It's not your money that was used to buy the toxic credit-default swaps that AIG has devalued.
Read more from Oldman148 points
cherry answered 2 years ago …
If you have more than the insured amount...why take the risk....you can move at least that part into something safer
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SallyG answered 2 years ago …
This is a tricky question, and I would get professional advice from someone who knows all the details about your specific question. That said, consider any costs of closing or moving your accounts (such as early-withdrawal penalties, for example). This is not be a good time to have all your eggs in one basket, IMHO, especially if you're cose to retirement age and/or your retirement accounts represent most of your investments.
Also, do you have a personal relationship with your account person at AIG, and do you trust that person to put your interest ahead of his or her short-term commissions? (I've had both experiences with Merrill Lynch brokers, different individuals with different attitudes toward clients. The first took early retirement rather than push MER recommendations in which he didn't have faith; when he gave advice, it was worth the higher commission than in my discount-broker account, and I traded accordingly.) SIPC insurance, to my knowledge, covers actual stock shares, but not their price; if your stocks are tied up, they may decrease in value if you can't access them to sell when you want. (Correct me if I'm wrong, anyone.) I'm not sure about investments in annuities or mutual funds.
986 points
jillybeansisme answered 2 years ago …
If you decide to move the account, make sure you do a direct rollover (you sign papers with the new investment firm who handles moving the money for you) and you can do it in "like assets" as far as I know. This way there is no withholding for taxes and no penalties incurred. There also is no brokerage fees for selling and then rebuying the positions. There may be a fee of some sort for closing the account, but that I don't really know.
Read more from jillybeansisme112 points
jeri322 answered 2 years ago …
It would be best for you to first determine whether your plan comes under the auspices of AIGA, which is separate from its parent, AIG. AIGA is a separate general account that supports only their own obligations, and its client assets are protected by the state's insurance regulations. AIGA is primarily invested in high quality investment grade fixed income securities (bonds). The guarantee of principal is backed by AIGA's general account, which supports (only) the obliagations of AIGA and no other company (separate from AIG, its parent.) I'm not sure whether a 401K or other retirement plans are included in AIGA, but they may be. Call AIG and ask the question. Hope this helps.
Read more from jeri3224107 points
MNSL answered 2 years ago …
Pl refer to Oldmans answer to my question.
It is a very good answer.
