peter71 wrote:A lot of folks on the TIAA board "flipped" their liquid Traditional balances in Summer '08 (moving from TRAD to MM then back to TRAD) though they've now made it tougher to do -- IIRC if you move back and forth within 90 days (?) you revert to your old rates.
days, Pete. See the first text paragraph beneath the TIAA Traditional rate chart here: http://www.tiaa-cref.org/performance/re ... nuity.html
I miss the times when rates were increasing, and (for all T–C accounts except the Retirement Annuity, which has its own separate liquidity rules), it was possible to transfer holdings out of Traditional, let them sit in Money Market for a day or two, then transfer all of them back to be treated as "new" contributions at a better rate. Sigh. Well, this was probably creating havoc with TIAA's portfolio planning, so I understand the business reasons for disallowing it (although I would not have chosen the opaque language TIAA itself uses, i.e., that the new policy is "designed to mitigate the effects of disintermediation"). . . . If I understand the new policy (and I'd welcome correction if I don't), if you switch out of Traditional and interest rates don't rise within 120 days, or if rates had already risen before the switch out but then fall again during the 120 days, at least you can transfer back
before the 120 days and recover original vintage rates, and the only thing lost is the interest on the money (or the difference in interest between Traditional and Money Market) while it was "out" of Traditional.