[Bothworlds]

So if AIG goes belly up. what happens to all the departments that have their LOSAP with them? Do they loose all the money? Is LOSAP gone? anyone who know? this should be a real concern...

[ADZE07]

Originally Posted by Bothworlds

So if AIG goes belly up. what happens to all the departments that have their LOSAP with them? Do they loose all the money? Is LOSAP gone? anyone who know? this should be a real concern...

Absolutely not. Your account is segregated. As a side note the plan administrator or Broker recieves whats called 12b1 fees or some other form of compensation. Its good to shop around every three years to see if another shop is willing to work for less.

[Wanderer]

Originally Posted by ADZE07

Absolutely not. Your account is segregated. As a side note the plan administrator or Broker recieves whats called 12b1 fees or some other form of compensation. Its good to shop around every three years to see if another shop is willing to work for less.

By segregated do you mean separated and secured federally ??

[ADZE07]

Originally Posted by Wanderer

By segregated do you mean separated and secured federally ??

Every plan is different but a LOSAP plan is similar to a 401k or IRA in that some entity holds or maintains your plan. There is whats called a State insurance fund and every state has one. Unless im way off base LOSAP is "protected" because its a Pension plan. I just cant speak in specifics because every plan is different and Its not my area of expertise. But a simple call to your plan adminstrator will clear it up.

Edited to add; Your plan should be protected however the investments within the plan are not. So hopefully your plan is not long AIG stock.

[14str8]

Looks like the feds saved the day.

Officials decided they must act lest the nation's largest insurer file bankruptcy. Such a move would roil world markets since AIG (AIG, Fortune 500) has $1.1 trillion in assets and 74 million clients in 130 countries.

"[A] disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said in a statement.

[ADZE07]

Originally Posted by 14str8

Looks like the feds saved the day.

Officials decided they must act lest the nation's largest insurer file bankruptcy. Such a move would roil world markets since AIG (AIG, Fortune 500) has $1.1 trillion in assets and 74 million clients in 130 countries.

"[A] disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance," the Fed said in a statement.

The feds provided a loan to buy time for an orderly liquidation or spin off of assets to strengthen the balance sheet. Thank God. As you posted AIG is worth quite a bit more than 85 bil

[MFD594]

Very good post.

I think a lot of depts need to look at ALL of their stuff, and all individuals as well.

This recent "turn of events" should be an eye opener to ALL of us. No matter what ya do, where ya work, what ya have invested in anything (stocks, bonds, IRA's, etc)... Spend a few hours going over "what ya got" and "what ya should be doing"...

...There are some more "dark" times on the horizon before this gets better brothers.

WAMU isnt looking too healthy these days. Granted unless you have over $100K with them, you'll be fine, BUT, from a stock standpoint, you might be screwed (like me!)