RE:RE:RE:Love my morning news alertchessplayer wrote: If the 2B$ is not a liability to you, I will ask you one question: Would you put your pension money with a life insurance company that does not have proper reserves? Pay as you go is good enough as long as you can write checks at will (think Canada Pension Plan) but if you have a surge in redemption not only you run the risk of going bankrupt but you also have to pony up real dollars to pay for those redemptions. Amia is extremely vulnerable to a surge in redemption.
Do you have money in the bank? if so it's the same thing. Money in you account is a liability to the bank right? so if there is a run to bank (a litteral one here) and the bank on has 10% of you money in reserves you face the same issue.
A surge in redmeption is not the risk... but it wont happen. No one is worried enough about 100K pts to pay the rest of the cost of a vacation. If you are accumulating enough to worry about your balance you are a engaged member and will be until 2020. The risk is not a run to the bank it is a drop in accumulation and that is not possible until at least 2020 and somewhat mitigated until 2024 with TD (if they contiunue marketing the program).