Search found 417 matches

by jjustice
Wed Aug 17, 2016 2:00 pm
Forum: Investing - Theory, News & General
Topic: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt
Replies: 59
Views: 4601

Re: Update: Emory & Columbia; New Fiduciary cases: 403b's at MIT Yale NYU & Duke Hopkins Penn Vanderbilt

I see that the Columbia suit alleges that CREF Stock has been "poor" "deficient" and "imprudent" for "many years." I have long wished that Stock was run as a pure index fund, but its 10-year return is only .23% lower than its benchmark of 70% Russell 3000 and ...
by jjustice
Tue Aug 16, 2016 10:05 am
Forum: Investing - Help with Personal Investments
Topic: TIAA vs Fidelity at new employer
Replies: 12
Views: 626

Re: TIAA vs Fidelity at new employer

There is a simple way to mimic your previous investments: the CREF Stock annuity account. It is 70% benchmarked to the Russell 3000 and 30% benchmarked to the MSCI All Country World Ex USA. The Russell index includes the smaller stocks of the Extended Market, and the MSCI index includes emerging mar...
by jjustice
Sun Aug 14, 2016 4:47 pm
Forum: Investing - Help with Personal Investments
Topic: CREF variable annuity in 403(b) -- any reason to pay the high expense ratio?
Replies: 31
Views: 966

Re: CREF variable annuity in 403(b) -- any reason to pay the high expense ratio?

I don't believe that you can exit a 403(b) plan and then go back in on your own. The money in these plans usually goes in by institutional contributions and individual salary reductions. But, even if you could do this, I wouldn't recommend it. The TIAA and CREF annuities are perhaps the best annuiti...
by jjustice
Mon Jul 18, 2016 12:23 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional Annuity as sole fixed income component
Replies: 66
Views: 5413

Re: TIAA Traditional Annuity as sole fixed income component

In the past two or three years TIAA changed the "headline" descriptions of its account types to "Defined Contribution Retirement Plan" (DC) for the RA and GRA accounts, and to "Tax-Deferred Annuity Retirement Plan" (TDA) for the SRA and GSRA accounts. I'm not sure what ...
by jjustice
Sun Jul 17, 2016 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional Annuity as sole fixed income component
Replies: 66
Views: 5413

Re: TIAA Traditional Annuity as sole fixed income component

I like the flexibility. The higher-yielding, illiquid RA account is ideal for building a solid retirement annuity. The lower-yielding, liquid SRA account is a safe and solid account for use in rebalancing with equity accounts. I wouldn't want to give up either one.

John
by jjustice
Mon Jul 11, 2016 8:35 am
Forum: Investing - Help with Personal Investments
Topic: TIAA- Traditional (which one?) vs Bond Market
Replies: 7
Views: 575

Re: TIAA- Traditional (which one?) vs Bond Market

I've been happy with Traditional for almost 40 years, and I've never known anyone to regret investing in it. I have known people to regret moving out of Traditional by means of a TPA.

I think that it is no contest if your alternative is a CREF R1 class bond account. Their ERs are pricey.

John
by jjustice
Mon Jul 04, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Need assistance with wife's 403b and annuities
Replies: 7
Views: 679

Re: Need assistance with wife's 403b and annuities

The R1 CREF accounts have the higher ERs that TIAA charges for smaller institutions. But the TIAA Real Estate and TIAA Traditional are the same at all institutions, large and small. These two TIAA accounts are probably the overall favorites of those of us who have TIAA. So I would suggest that your ...
by jjustice
Sat Jul 02, 2016 7:54 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs. Vanguard REITS
Replies: 26
Views: 2165

Re: TIAA Real Estate vs. Vanguard REITS

" The payment will vary depending on the underlying TREA share value. " Not exactly. Lev But so close as to make no real difference. The value of annuity units moves in tandem with the value of the unannuitized units. There is the possibility of a small mortality credit adjustment each ye...
by jjustice
Thu May 26, 2016 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA-CREF Bond funds - help deciphering!
Replies: 31
Views: 1376

Re: TIAA-CREF Bond funds - help deciphering!

Their best option at this point is probably to annuitize the account. If you can't persuade them to do that, I doubt that there is a better option available than putting it back into Traditional--at rates lower than their current vintage rates! Perhaps the prospect of reinvesting at lower rates will...
by jjustice
Wed May 18, 2016 2:06 pm
Forum: Investing - Help with Personal Investments
Topic: SS or not
Replies: 22
Views: 2115

Re: SS or not

Ah, a new rationalization. To paraphrase La Rochefoucaulde, rationalization is the homage imprudence [impulse] pays to wisdom [reason].

John
by jjustice
Wed May 18, 2016 10:25 am
Forum: Investing - Help with Personal Investments
Topic: SS or not
Replies: 22
Views: 2115

Re: SS or not

Nice try, Stevewc! It's hard to leave money sitting there when it's available for the taking. But there is no easy way to avoid the point that, for most of us, the choice is quicker money or more money. That marshmallow is awfully tantalizing.

John
by jjustice
Mon May 09, 2016 9:38 am
Forum: Personal Finance (Not Investing)
Topic: Need help with Social Security strategy for wife
Replies: 15
Views: 1408

Re: Need help with Social Security strategy for wife

So I’m not sure there’s any real advantage to me postponing until age 70. I’m exhausting myself with this analysis paralysis and would really value some feedback! Thanks! I think that you were right from the beginning. On a rational, present-value basis neither choice is much better than the other....
by jjustice
Sun May 08, 2016 2:39 pm
Forum: Personal Finance (Not Investing)
Topic: Need help with Social Security strategy for wife
Replies: 15
Views: 1408

Re: Need help with Social Security strategy for wife

I'm glad you posted your question. To me the crucial variable here is the age difference. If you were the same age, you clearly should claim the spousal benefit and wait until 70 for your own. If there were a 20 year difference, you clearly should start your own, with the expectation that you would ...
by jjustice
Fri Apr 22, 2016 2:10 pm
Forum: Investing - Help with Personal Investments
Topic: When to start Social Security. A different take
Replies: 107
Views: 10309

Re: When to start Social Security. A different take

In all previous threads on this subject that I've read there have been comments by those on both sides who haven't yet filed and aren't yet eligible, those who are currently delaying, and those who have filed early. There are very few comments by those who patiently waited and eventually filed afte...
by jjustice
Tue Apr 12, 2016 11:47 am
Forum: Investing - Help with Personal Investments
Topic: New Job - TiAA-CREF and/or Fidelity options, Please help!
Replies: 25
Views: 1335

Re: New Job - TiAA-CREF and/or Fidelity options, Please help!

livesoft, I have until June 1 to send my info to my benefits office. All I need to have decided by then is amount I'm putting in, 3.5 or 5.5% (going with 5.5% as they then contribute 8%), and the percentage of allocation between TIAA-CERF and Fidelity. Once it is processed I can then go to each ins...
by jjustice
Tue Apr 12, 2016 11:20 am
Forum: Investing - Help with Personal Investments
Topic: New Job - TiAA-CREF and/or Fidelity options, Please help!
Replies: 25
Views: 1335

Re: New Job - TiAA-CREF and/or Fidelity options, Please help!

I don't know why LALearning said that you didn't have access to the 3% guaranteed Traditional. The link that you supplied to your available funds shows that you have the regular Traditional with 3% guaranteed--and currently paying 4%. I see that you also have access to the R3 version of CREF Stock. ...
by jjustice
Mon Apr 11, 2016 4:36 pm
Forum: Investing - Help with Personal Investments
Topic: New Job - TiAA-CREF and/or Fidelity options, Please help!
Replies: 25
Views: 1335

Re: New Job - TiAA-CREF and/or Fidelity options, Please help!

A simple combination that has been rewarding to many of us with TIAA retirement plans is CREF Stock, TIAA Traditional, and TIAA Real Estate. CREF Stock is a diversified, one-stop, global equity account with 70% domestic and 30% foreign. Traditional is a fixed income fund that will match the returns ...
by jjustice
Tue Mar 08, 2016 9:55 am
Forum: Personal Finance (Not Investing)
Topic: TIAA-CREF makes 403b rollovers difficult
Replies: 14
Views: 1141

Re: TIAA-CREF makes 403b rollovers difficult

I did a rollover in 2013 from TIAA to Vanguard with no difficulty. To get it done I called a Vanguard representative and he initiated a 3-way call with TIAA. I don't remember the paperwork now, but it was not onerous.

John
by jjustice
Wed Feb 03, 2016 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: How to allocate equities in TIAA-CREF 403(b)?
Replies: 19
Views: 1543

Re: How to allocate equities in TIAA-CREF 403(b)?

All the CREF equity accounts are going to have similar expense ratios. I don't see that expense ratios are a factor. CREF Stock has 30% foreign stock with a portion of it in emerging markets. I see the emerging market portion as an advantage over Global Equities, which has only developed markets. Th...
by jjustice
Mon Feb 01, 2016 4:57 pm
Forum: Investing - Theory, News & General
Topic: madsinger monthly report (January 2016)
Replies: 7
Views: 1460

Re: madsinger monthly report (January 2016)

Wellington is hard to beat!

John
by jjustice
Sun Jan 31, 2016 5:03 pm
Forum: Investing - Help with Personal Investments
Topic: Employer's TIAA-CREF plan - live with it or question it?
Replies: 15
Views: 1086

Re: Employer's TIAA-CREF plan - live with it or question it?

can you explain what you mean by annuitizing the CREF stock account? I thought I understood the basic concept of annuitizing, but I don't understand how this happens with CREF Stock that I could switch from R1 to R3. The beauty of the annuity accounts is that when you retire you can either treat th...
by jjustice
Sun Jan 31, 2016 3:40 pm
Forum: Investing - Help with Personal Investments
Topic: Employer's TIAA-CREF plan - live with it or question it?
Replies: 15
Views: 1086

Re: Employer's TIAA-CREF plan - live with it or question it?

It's regrettable that your institution has the R1 class of CREF annuity accounts, but I wouldn't lose any sleep over it. You still have access to excellent annuity accounts at reasonable expense ratios--even if they are lower for some. I am a fan of TIAA-CREF's annuity accounts, and you have their b...
by jjustice
Sat Jan 30, 2016 2:15 pm
Forum: Investing - Theory, News & General
Topic: TIAA Re Acct. B/S & performance (Jan)
Replies: 29
Views: 2921

Re: TIAA Re Acct. B/S & performance (Jan)

tibbitts wrote:TREA has returned about 4% annualized for the past decade, not exactly "double digits", but not horrible, either.


To take a longer view, TREA has returned 6.51% annualized over the past two decades.

John
by jjustice
Mon Oct 19, 2015 10:19 am
Forum: Investing - Help with Personal Investments
Topic: 403b Fidelity vs. TIAACREF portfolio help
Replies: 30
Views: 2462

Re: 403b Fidelity vs. TIAACREF portfolio help

There are many thousands of happy, secure retired people all over America who made monthly contributions of half of their retirement money to the TIAA Traditional Account and the other half to the CREF Stock Account. Then, on retirement, they annuitized these two accounts to receive total monthly pa...
by jjustice
Thu Oct 15, 2015 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: It's official No SS COLA [Social Security Cost-of-Living Adjustment]
Replies: 66
Views: 3763

Re: It's official No SS COLA

Aren't you glad that there is only an up-side COLA?

John
by jjustice
Fri Sep 04, 2015 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: Help with retired parents' portfolio - TIAA experts welcome!
Replies: 44
Views: 2927

Re: Help with retired parents' portfolio - TIAA experts welcome!

A suggestion: using one of Vanguard's four LifeStrategy funds for an IRA is simpler than a three-fund portfolio and gets you automatic rebalancing.

John
by jjustice
Thu Sep 03, 2015 3:07 pm
Forum: Investing - Help with Personal Investments
Topic: Help with retired parents' portfolio - TIAA experts welcome!
Replies: 44
Views: 2927

Re: Help with retired parents' portfolio - TIAA experts welcome!

Jjustice, I wasn't aware that one could annuitize the TIAA and CREF accounts - I don't think my mother is aware of this option either. I'm researching now, but can you elaborate on why this might be a good option? The annuities will pay larger amounts than the RMDs and, more importantly, pay them u...
by jjustice
Thu Sep 03, 2015 1:50 pm
Forum: Investing - Help with Personal Investments
Topic: Help with retired parents' portfolio - TIAA experts welcome!
Replies: 44
Views: 2927

Re: Help with retired parents' portfolio - TIAA experts welcome!

I agree with you that 50/50 is not too aggressive for people of their age and financial condition. They would hardly notice a bear market. I also agree that they have far too many funds. Just thinking about the TIAA-CREF 403(b), if I understand you, your father has not annuitized any accounts. If th...
by jjustice
Mon Aug 10, 2015 2:26 pm
Forum: Investing - Theory, News & General
Topic: TIAA Traditional Annuity - Historical Accumulation Rates
Replies: 7
Views: 561

Re: TIAA Traditional Annuity - Historical Accumulation Rates

Did you look at the White Paper that is linked (on the right) at the site you gave? It has a chart of rates back to 1987.

John
by jjustice
Thu Jul 23, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional - Adding Fixed Income to My Portfolio
Replies: 11
Views: 1229

Re: TIAA Traditional - Adding Fixed Income to My Portfolio

Ralph, I rebalance to stocks with Traditional. If it's in an SRA or GSRA account, Traditional is completely liquid. I've always kept enough in my SRA to rebalance. (Although I exhausted it in 2009!) It does take a little more thinking to decide how to allocate between RA and SRA. So rebalancing is n...
by jjustice
Thu Jul 23, 2015 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional - Adding Fixed Income to My Portfolio
Replies: 11
Views: 1229

Re: TIAA Traditional - Adding Fixed Income to My Portfolio

Traditional is a great annuity account. I have no reservations about it. But if I understand you, you have a misconception. The older vintages pay more because they were purchased when interest rates were higher. It is not age that determines the rates. In fact, the older vintages slowly move toward...
by jjustice
Mon Jul 20, 2015 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Why did you take SS at FRA instead of delaying until 70?
Replies: 69
Views: 8960

Re: Why did you take SS at FRA instead of delaying until 70?

Many people have good and sufficient reasons to take social security at FRA, or even earlier. But I suspect that few people are aware of how happy and secure they will feel in their 70s, 80s, and 90s if they have delayed until 70. The benefit of delay starts long before you reach the break-even age....
by jjustice
Thu Jul 16, 2015 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: AA help for 403b (TIAA-CREF)
Replies: 15
Views: 1661

Re: AA help for 403b (TIAA-CREF)

My retirement funds were in a TIAA-CREF 403(b). I have retired. At retirement I annuitized about half of my accumulation. Now I am a happy, secure retiree. The other approximately half of my accumulation requires me to take annual RMDs. I used only CREF Stock, TIAA Traditional, and TIAA Real Estate....
by jjustice
Thu Jul 16, 2015 9:53 am
Forum: Investing - Help with Personal Investments
Topic: AA help for 403b (TIAA-CREF)
Replies: 15
Views: 1661

Re: AA help for 401k (TIAA-CREF)

If she works for a nonprofit organization (school, college, church, hospital, etc.) and this is her retirement plan, it is a 403(b). I've not heard of the annuity accounts that you say she has (Traditional, Real Estate, CREF Stock) being in 401(k)s, but perhaps they can be. Does anyone else know whe...
by jjustice
Thu Jul 16, 2015 9:20 am
Forum: Investing - Theory, News & General
Topic: Shiller - The Mirage of the Financial Singularity
Replies: 17
Views: 2870

Re: Shiller - The Mirage of the Financial Singularity

Shiller makes me think of Larry Summers' famous opening lines: "There are idiots. Look around." Shiller is a bit more diplomatic than Summers.

John
by jjustice
Mon Jul 13, 2015 9:10 am
Forum: Investing - Help with Personal Investments
Topic: AA help for 403b (TIAA-CREF)
Replies: 15
Views: 1661

Re: AA help for 401k (TIAA-CREF)

Is this a 401(k) or a 403(b)? If it is the latter and you want simplicity, just use three annuity accounts: CREF Stock, TIAA Traditional, and TIAA Real Estate. You can allocate them to get any asset balance you want in safe, highly diversified accounts. A benefit of this program is that your mother ...
by jjustice
Sat Jun 27, 2015 2:47 pm
Forum: Investing - Theory, News & General
Topic: TIAA-CREF dramatically increasing Expense Ratios
Replies: 95
Views: 18356

Re: TIAA-CREF dramatically increasing Expense Ratios

Shilling, in case you were unaware, when you annuitize a CREF account it is moved to the cheaper R3 class, regardless of the class the account was in during accumulation. It's hard, perhaps impossible, to beat the CREF accounts as variable annuities. I am a happy, secure annuitant with accounts in C...
by jjustice
Mon Jun 22, 2015 2:49 pm
Forum: Personal Finance (Not Investing)
Topic: Life Expectancy Divisor for RMDs
Replies: 4
Views: 687

Re: Life Expectancy Divisor for RMDs

As counterintuitive as it seems, I've now learned that half of us can never use the age-70 life-expectancy divisor for RMDs. It's not what I expected, or wanted, to hear.

John
by jjustice
Mon Jun 22, 2015 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: Life Expectancy Divisor for RMDs
Replies: 4
Views: 687

Life Expectancy Divisor for RMDs

I recently turned 70.5. When I went to set up required minimum distributions, I was told that the life expectancy divisor for my first payment would be 26.5--the divisor for a 71-year-old. The reason given was that I would be 71 at the end of 2015. This seems wrong. I am taking a required distributi...
by jjustice
Sun Jun 21, 2015 2:08 pm
Forum: Investing - Theory, News & General
Topic: Are Grantham and Hussman Correct About Valuations? [US stock market, Larry article]
Replies: 18
Views: 2533

Re: Are Grantham and Hussman Correct About Valuations? [US stock market, Larry article]

"Their underlying assumption is that the ratio has a strong tendency to revert to its historical mean of 16.6." Is this true? I think that I remember a discussion of GMO's forecast methodology by James Montier (or Ben Inker?) in which it was explained that their estimation of the mean to w...
by jjustice
Sat Jun 20, 2015 4:32 pm
Forum: Investing - Theory, News & General
Topic: Any equivalent to TIAA traditional elsewhere?
Replies: 6
Views: 846

Re: Any equivalent to TIAA traditional elsewhere?

i don't understand. MN Finance mentions a bond fund, and Livesoft throws in a 529 plan. The OP asked a question that I had wondered about before. Is there another participating annuity with a guaranteed minimum that is at all comparable to TIAA Traditional? Is TIAA Traditional completely unique? It ...
by jjustice
Fri May 22, 2015 1:16 pm
Forum: Investing - Theory, News & General
Topic: Bill Gross Thinks the End Is Near
Replies: 54
Views: 8193

Re: Bill Gross Thinks the End Is Near

If you look at a chart of bonds from the summer of '81 until now, and a chart of stocks from the summer of '82 until now, they certainly look like strong 33-34 year bull markets. I don't know where they go from here, but the next 30+ years surely won't be a match the past 30+ years.

John
by jjustice
Fri May 15, 2015 1:23 pm
Forum: Personal Consumer Issues
Topic: Aren't we overdoing electronic auto safety features?
Replies: 263
Views: 27493

Re: Aren't we overdoing electronic auto safety features?

My next car will have adaptive cruise control and crash mitigation. These safety features are worth a lot to me.
Browser, if you are behind me, I hope you will have the same.

John
by jjustice
Wed May 06, 2015 6:50 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Trad/stable value and NO bonds?
Replies: 19
Views: 2048

Re: TIAA Trad/stable value and NO bonds?

I always kept 90% of my Traditional in the higher-paying RA, with 10% in the SRA for liquidity. (I shouldn't say always. They didn't start paying different rates until around 30 years ago. But since then.) I did spend all of the liquid account on CREF Stock in the winter of 2009, but that was an exc...
by jjustice
Sun May 03, 2015 7:05 pm
Forum: Investing - Help with Personal Investments
Topic: Will I want to/need to annuitize assets at TIAA-CREF?
Replies: 16
Views: 1182

Re: Will I want to/need to annuitize assets at TIAA-CREF?

Let's talk about emotions. For most people, beginning an annuity is a scary dive off the high board. Many can't bring themselves to do it despite rationally understanding the benefits. I think that the annuity decision was much easier for me because I was annuitizing portions of accounts with which ...
by jjustice
Sat May 02, 2015 1:21 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 4539

Re: Social Security Question:

It definitely seems that delay is the better choice for your parents. Your mother is already 63 and still working. Your father can expect to live into his 90s. If your mother were only 62 and retired, and your father had an average life expectancy, then her starting at 62 would be better. This is th...
by jjustice
Sat May 02, 2015 9:16 am
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 4539

Re: Social Security Question:

If they can find a low risk real return of 0.77%, then Annuity 2 is worth $0 more than Annuity 1. Annuity 2 is never worth more than Annuity 1 in the current interest environment if the longevity assumptions are reduced. Thanks for running these two options, Enkidu. It looks to me as if my intuitiv...
by jjustice
Fri May 01, 2015 1:22 pm
Forum: Investing - Theory, News & General
Topic: CREF Stock R3 Fund - Variable Annuity?
Replies: 16
Views: 1958

Re: CREF Stock R3 Fund - Variable Annuity?

That is, one can use the T-C "Equity Index fund" instead of the CREF "Equity Index fund" (which has a higher ER), and later move the T-C money to the CREF fund, and *then* annuitize. RM Careful! Things have changed. The R3 class of the Equity Index annuity account has an ER of ....
by jjustice
Fri May 01, 2015 12:16 pm
Forum: Investing - Theory, News & General
Topic: CREF Stock R3 Fund - Variable Annuity?
Replies: 16
Views: 1958

Re: CREF Stock R3 Fund - Variable Annuity?

The word "annuity" in the name is a historical relic. It's basically irrelevant. The fund acts pretty much like a mutual fund. I disagree. You cannot annuitize a mutual fund. These accounts, or any portion of them, can be turned into high quality variable annuities when you retire. Being ...
by jjustice
Thu Apr 30, 2015 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security Question:
Replies: 33
Views: 4539

Re: Social Security Question:

I think that most of us agree that an older, higher-PIA husband should delay social security to 70. What I am curious about is how much younger a lower-PIA wife should be in order to make her filing at 62 the best present-value strategy. I suspect that 10 years younger makes filing at 62 preferable....

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