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Yesterday I received 2 calls and today another on about the safety of AIG IRA Annuities.
I'm kind of the go to person for a number of Seniors living on fixed incomes... three have all of their retirement funds in AIG IRAs paying 3 to 4%. Amounts range from 40k to 130k... basically their life savings.
I'm great at fixing things, helping someone buy a car, Real Estate and Consumer Issues...but, I don't know enough about IRA annuities to give sound advice to anyone.
So... what is the likelihood of these Annuities becoming worthless?
They all bought back in the 90's on the advice of Bank Investment Counselors as being super safe and highly rated.
They were good investments in the early 90's (I was offered some but declined) but are much less so now. I hate to say it but why did these people trust enough to put all their money in one AIG basket? This is why we have a social security system.
I kind have been wondering kind of the same thing. I have an annuity through AIG Valic. I have been paying into it since about 1994. If I meet with my "advisor" (who I haven't spoken to in four years), I don't think she will be very impartial. By that I mean I am sure I will get the "everything is ok, stick with it" line no matter what. Not that I get much advice anyhow. It was always, "I can't tell you...read the prospectus". Neither my wife or I can make heads or tails of that. We basically chose three funds and went with them. Is it possible to find an independent advisor who can look at our statements and give us advice on what to keep, change, etc? How would one go about finding someone to do that?
I figure retirement annuities in AIG are just about a safe as tap dancing in a minefield. It is not weather they will become worthless but when.
That is what I am wondering. Of course, the AIG rep would tell me otherwise. That's is why we are thinking about getting some independent advice on what to do with it, if anything. Just don't know how to go about finding someone to do that.
I am in the same boat. I will retire in 1 1/2 years and have a lot of my retirement in an AIG fixed annuity (403b). I did find that all states have a guarantee fund that works like FDIC for life insurance and annuities. Most states guarantee up to $100,000 though some like New York guarantee up to $500,000. Problem is I have over $100,000 so the amount above that is not guaranteed. I understand from everything I am reading and people I am talking to that AIG Retirement (formerly VALIC) is solvent and safe. Most think the insurance/retirement parts of AIG will end up being sold with no loss to investors.
At least that is what I am going on at this time. If I try to move my money I will pay a penalty for early withdrawal and/or taxes. Plus according to my annuity contract I can only rollover 20% a year which further limits my flexibility.
I kind have been wondering kind of the same thing. I have an annuity through AIG Valic. I have been paying into it since about 1994. If I meet with my "advisor" (who I haven't spoken to in four years), I don't think she will be very impartial. By that I mean I am sure I will get the "everything is ok, stick with it" line no matter what. Not that I get much advice anyhow. It was always, "I can't tell you...read the prospectus". Neither my wife or I can make heads or tails of that. We basically chose three funds and went with them. Is it possible to find an independent advisor who can look at our statements and give us advice on what to keep, change, etc? How would one go about finding someone to do that?
I'd suggest setting up an apointment with a fee-only planner/advisor for unbiased guidance on your investments. You can start your search here:
As for the question of whether your annuity will become worthless, like I said in the thread I linked to earlier, if it's a variable annuity, that's not likely to happen. That money's yours and is kept separate from AIG's assets.
Quote:
Originally Posted by Oldsurfer
Plus according to my annuity contract I can only rollover 20% a year which further limits my flexibility.
Ah yes, one of the many wonderful "gotchas" of annuities.
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