Ulan wrote:Thanks for the suggestion. I just changed the title .
peter71 wrote:I'm not an expert on withdrawals and rollovers and so forth, and TIAA-CREF plans can vary from employer to employer, but for all practical purposes I think you can think of the variable annuities other than TIAA-Traditional much as you'd think of mutual funds, with no restrictions on withdrawals (except for minor restrictions with the TIAA Real Estate Account).
brainstem wrote:If you have a solid nest egg, even the TIAA reps have, in the past, advised to not take the annuity offer and, instead, roll things over. That is, you are better off as are your heirs to have the assets in hand rather than in an annuity that vanishes with death or after a time certain.
That said, my wife (age - mid 50's) had a TIAA account - which has proven to be a solid, safe performer in this unpleasant 15 years in equities -- and left the employer (university) that supplied the offerning -- We have arranged, by the rules of the program, to move 10% per year of the annuity account into her IRA -- it is treated as a rollover on annual taxes. She is not currently taking withdrawals from the IRA.
sscritic wrote:brainstem wrote:
Sometime people with savings in an annuity use the money to purchase an annuity, converting part of an annuity into an annuity. Your TIAA-CREF account may be an annuity, but it is not an annuity. Only some TIAA Traditional Accounts require you to take the money out with an annuity. Note that 10 roughly equal payments over a nine year and one day period is an annuity.
raywax wrote:My comment is with this sentence fragment - "Only some TIAA Traditional Accounts require you to take the money out with an annuity,"
I assume the poster (sscritic?) uses the last word as a payout annuity meaning that in some Traditional Accounts one must annuitize the Traditional holding into a life or term annuity for one or two individuals (of course from TIAA). IF this is what it means I think the statement is incorrect in essence. Personally I know of no TIAA-CREF retirement account (RA, GRA, SRA, GSRA or IRA) where one's only option is to annuitize the principal invested in the Traditional Account. Now as has been said by others, TIAA-CREF accounts vary according to the rules established by the originating agency (usually a college or university) so I cannot say that the statement is totally inaccurate; thus my phraseology "in essence."
If someone knows a situation where the statement is correct as it applies to one of the five retirement accounts I listed, pleased post or PM me.
SamLJ wrote:Hi Ulan,
Other people have taken a stab at some of your questions so I will take a stab at a portfolio for you. I like that you have Vanguard funds available to you in the 401a. I'm going to treat TIAA Traditional like a bond fund and assume you'd like to carry on investing in it in approximately the same % as you have now. I think the expenses on the other bond options in your 401a are a bit high so I'm going to put them in your Roth for now.
Do you want to continue investing in the TIAA Real Estate account? Most here would say that it is no point having an asset class in your portfolio unless it takes up at least 5% of the portfolio, so I'll give two suggestions, one with 5% allocated and one with 0% allocated to it.
SamLJ wrote:I expect that the TIAA Traditional account will be tricky to move money out of, but if you are able to and would like a suggestion where it is not included then please post a request.
Hope this helps,
SamLJ wrote:edit - I just realized that you won't have enough money yet to buy the extended fund in the Roth without overweighting it (due to the total size of the portfolio and the need for $3k minimum). You could either overweight it initially, or underweight that sector of the market and just stick with the total stock market fund in there for now).
Which means I could now switch my regular contributions to normal funds in that 401(a) account, if it sounds reasonable. The choice is quite broad, with most of the funds being active ones. Some expense ratios are not too bad.
peter71 wrote:Hi Ulan,
If your 401a plan is like my restrictive "RA" plan, you can take all of your current "annuity" funds except those in the TIAA Traditional Annuity and move them to "normal funds" immediately at TIAA CREF (or elsewhere within the plan options) if you so choose (though for funds in the TIAA Real Estate account you'll have to do it by phone). If your plan is like my less restrictive GSRA plan (with the lower TIAA Traditional interest rates) you can also move the monies in TIAA Traditional immediately should you so choose.
Chances are extraordinarily high that your plan is like one of these two types of plans, but there's no way for us to really know for sure.
As for what you should do vs. what you can do . . . I agree that the biggest single factor you should consider is costs and TIAA-CREF's pricing can be quite idiosyncratic so it pays to look at the ER's on both the "normal" and the "abnormal" options alike.
Ulan wrote:Thanks for the suggestions. I have already stopped paying into the TIAA Real Estate account. I didn't bother with selling anything yet, because of the associated fees.
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