The recent volatility in the stock market, and the liquidity crisis that is swirling around some large financial institutions may have some of you concerned about your retirement investments.  This is particularly so as one of our retirement choices, VALIC, is a subsidiary of AIG Insurance Company, around which there is a lot of discussion.

As is explained in a “Talking Points” memo from AIG Retirement, under the “Asset Safeguards” section (bottom of page 1), individual funds invested in VALIC mutual funds are in segregated accounts protected from any claims other that yours.  VALIC itself appears to be well capitalized and strong financially.

The economic turmoil of the last six months has created a volatile stock market.  There have been lots of ups and downs.  History tells us that the better long term strategy is to ride it out, and not try to “time” the market’s ups and downs.  However, how you react to your individual investments is a personal decision, based on your comfort with taking risk in the pursuit of a greater reward (they usually go hand in hand.)

Should you have questions, our VALIC representative, Rodney Smith, is available to talk with you.  He can be reached at 595-2588.

–Jim Graber,CFO


1 Comment so far

  1. Amy McGill on September 17, 2008 2:55 pm

    And for those of you who invest through TIAA CREF, here’s an article on the current situation from their perspective.

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