The Financial Crisis Support Group
This community is dedicated to discussing the financial crisis of 2007-2008, which has had a worldwide impact on wealth, jobs and personal security. Our hope is that this community will focus on positive thoughts, real advice for adjusting your expenses and investments based on these changes, and support for one another as we go through this painful period.
All of the money I have to my name for my future is 50,000.00 from the sale of my condo which I put into an AIG Annuity which I can't touch till I'm 50 years old. Is it possible that I can lose this money? Should I be concerned? Forgive me for being so ignorant to the situation, but I'm confused because I've never followed politics or financing. Plus I've been in the "black hole" you go into when you have a toddler in the house and all you watch is Barney instead of the news. :-) Any info. would be appreciated, thanks.
The problem is that your annuity is only as safe as the company you bought it from and while AIG is still in business, they had to borrow another $37 billion with a B from the government this last week which doesn't exactly bode well for them after the $85 billion they got last month. I don't think they'll be allowed to fail simply because they issue insurance on municipality bonds [city/state/fire/school districts and the like] and without the insurance, the bonds can't be issued.
The problem with all this companies is that they have to borrow to stay in business, often hundreds of millions of dollars. If and when they can't renew the loan, they become insolvant as in the case of Enron.
Hence people keep panicking and withdrawing their funds, making everything worse. Everyone needs to just hold on tight, leave thier money where it is.
It is very unfortunate if you are in , or nearing retirement age. truely their is nothing anyone personally can do about it.
Pretty much everywhere your funds have been invested, in the mainstream type of so-called safe investments, will be effected.
But as l stated before , it is panicking withdrawels that make the situation worse.
Hold tight until around January/Feb next year
I think that is when the USA elections happen (im in Australia)
Personal opinion is there isn't a safe place for your money.