Monet Rep

My Retirement Money with Aig-Valic is now 95% money market funds.?

I had a diversified portfolio with AIg-Valic but around December 2007, I told my rep to move it out into money market account. Now I am afraid about my monet which is around $300K. Should I move it to US treasurys or something?

Is your money in the fixed rate? If it is then the principal is guaranteed, but the interest is based on the claim paying ability of VALIC. As a whole, the entire account is probably just fine as VALIC is separate from AIG, but if you have retired and can transfer your funds (without fees) into an IRA, I would recommend it.

The problem with VALIC is that they charge a mortality fee on top of every other fee. The mortality fee guarantees that your beneficiaries receive the amount of money you contributed, but not the amount on top. The usual rate charge by VALIC is 1% a year. This means on $300k, you are paying $3k in fees without anything to show for it.

There are several better choices – Fidelity, Schwab, Vanguard. I would also suggest looking into moving your assets into several diversified funds. Balanced, global, etc., etc. You have been lucky to miss a large downdraft, and with the moves that have been made around the world, it may be a perfect time to start having your money work for you again.

Good luck,

Robby Schultz
Rollins Financial Counseling, Inc.
rschultz@rollinsfinancial.com

UDTV: Lioness, RoxXxan and the ladies rep for the females at Industry Takeover

String Quartet 7 / Mazurka Notturno / Nonetto 2 $19.98 …