Search found 461 matches

by jjustice
Sun May 27, 2018 11:08 am
Forum: Investing - Help with Personal Investments
Topic: What would you do: TIAA traditional vs. TREA?
Replies: 39
Views: 1857

Re: What would you do: TIAA traditional vs. TREA?

I basically second Wizard's advice. My qualification would be that 70% equities is rich even for a young person. People are requiring a smaller equity risk premium these days, so equities may not be the money-makers in the future that they were in the past. I might completely agree with Wizard if th...
by jjustice
Fri May 25, 2018 7:13 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA TRAD as Fixed Income in my AA?
Replies: 9
Views: 775

Re: TIAA TRAD as Fixed Income in my AA?

In any event, I think you will get a 3% yield from bond funds or more going forward, but that TIAA Trad will be stuck at paying 3% for a while. You must be thinking of Traditional's 3% guarantee. Its actual accumulating rate has been 4% for quite a while, and I would not be surprised to see it go u...
by jjustice
Fri May 25, 2018 3:25 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA TRAD as Fixed Income in my AA?
Replies: 9
Views: 775

Re: TIAA TRAD as Fixed Income in my AA?

I would not be 100% TIAA TRAD myself. It is good to have when bond fund prices are dropping, but not so good when bond fund prices are recovering. Since bond fund prices have already dropped quite a bit, I think the ship has sailed this time. Traditional may indeed do relatively better when rates a...
by jjustice
Sun May 20, 2018 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate
Replies: 67
Views: 3785

Re: TIAA Real Estate

I hate to break it to you but the returns already have dropped below Traditional, dramatically in some cases, depending on the time period you choose to measure. ?? You would have to do some very motivated cherry picking to find a recent period where TIAA Real Estate has returned less than illiquid...
by jjustice
Sat May 19, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate
Replies: 67
Views: 3785

Re: TIAA Real Estate

I hate to break it to you but the returns already have dropped below Traditional, dramatically in some cases, depending on the time period you choose to measure. ?? You would have to do some very motivated cherry picking to find a recent period where TIAA Real Estate has returned less than illiquid...
by jjustice
Fri May 18, 2018 6:52 pm
Forum: Personal Finance (Not Investing)
Topic: both spouses not wait for SS ?
Replies: 26
Views: 3285

Re: both spouses not wait for SS ?

So she was not yet 62 on January 1, 2016 and is not eligible to do a restricted application for the spousal benefit while waiting to take her own benefit at 70. But you can. When you reach 66 (FRA), she can start her social security and you can do a restricted application. For four years you'll get ...
by jjustice
Thu May 10, 2018 10:02 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional annuitization vs. cash out
Replies: 16
Views: 1561

Re: TIAA Traditional annuitization vs. cash out

Do you happen to remember "how much less" (percentage less) the graded cost back in 2013? (That's probably age-dependent, in addition to the age factor of any annuity itself?) I take your question to be about how much more I would have gotten on my first payment if it had all been standard payout. ...
by jjustice
Thu May 10, 2018 8:59 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional annuitization vs. cash out
Replies: 16
Views: 1561

Re: TIAA Traditional annuitization vs. cash out

Ah - you've got both graded and not. For those two TIAA Trad Annuity lifetime incomes, are you able to compare the percentage (or yearly average percentage) of the *increase*? I began my Traditional annuities on August 1, 2013. Using the CPI-U index for July 2013 and April 2018, inflation has been ...
by jjustice
Wed May 09, 2018 6:38 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional annuitization vs. cash out
Replies: 16
Views: 1561

Re: TIAA Traditional annuitization vs. cash out

Speaking from personal experience, I am very happy on the first of the month to get an annuity check that I know will continue through both my and my wife's lifetime. Five years ago I started four annuities with TIAA. They were CREF Stock, TIAA Real Estate, TIAA Traditional graded payment, and TIAA ...
by jjustice
Mon May 07, 2018 9:44 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Guaranteed Annuity
Replies: 83
Views: 3682

Re: TIAA Guaranteed Annuity

The definitive information from TIAA about Traditional is in this white paper:

https://www.tiaa.org/public/pdf/complia ... -paper.pdf

John
by jjustice
Thu Apr 19, 2018 10:01 am
Forum: Personal Finance (Not Investing)
Topic: What is best strategy for taking RMD from VG IRA
Replies: 26
Views: 2216

Re: What is best strategy for taking RMD from VG IRA

I have a suggestion: qualified charitable distributions. Following up on the previous poster's suggestion of consolidation, you could put it all into two funds: a LifeStrategy fund and the Prime money market fund. Then you can write checks on the money market fund (minimum $250) directly to qualifie...
by jjustice
Tue Jan 30, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: Wow: Shiller PE is 34.52
Replies: 52
Views: 6770

Re: Wow: Shiller PE is 34.52

Don't you mean, unless you are a long-term investor? Buying (broad index) stocks in 1999 was profitable, for example. Took a bit of time though. I see your point, but I wouldn't say that buying US stocks in 1999 was a profitable activity, since saving that money and investing it a few years later w...
by jjustice
Tue Jan 30, 2018 10:35 am
Forum: Investing - Theory, News & General
Topic: Wow: Shiller PE is 34.52
Replies: 52
Views: 6770

Re: Wow: Shiller PE is 34.52

The CAPE can certainly tell you when it is not a profitable time to buy US stocks--unless perhaps you are a short-term trader.

John
by jjustice
Tue Jan 30, 2018 10:31 am
Forum: Investing - Help with Personal Investments
Topic: Revisiting Annuity vs. Lump Sum decision
Replies: 10
Views: 854

Re: Revisiting Annuity vs. Lump Sum decision

You would probably find Dirk Cotton's January 26 essay on retirement strategy helpful in making your decision.
http://www.theretirementcafe.com/

John
by jjustice
Thu Jan 18, 2018 2:26 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing bands tighter than 5 / 25?
Replies: 17
Views: 1413

Re: Rebalancing bands tighter than 5 / 25?

I think that some suggested bands take trading costs and capital gains taxes into account. It also matters what the alternative to stock is. In my retirement funds, where I have neither costs nor taxes and my alternative is TIAA Traditional, the equity target is 50%. When it reaches 52.5% I exchange...
by jjustice
Wed Jan 10, 2018 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA vs Vanguard Index Funds
Replies: 3
Views: 627

Re: TIAA vs Vanguard Index Funds

If you are not going to establish an annuity, there is no reason to stay in annuity accounts. Many TIAA clients, including me, are happy to have a lifetime annuity.

John
by jjustice
Fri Nov 03, 2017 2:57 pm
Forum: Investing - Help with Personal Investments
Topic: Should I max out 403(b) on last check?
Replies: 9
Views: 1069

Re: Should I max out 403(b) on last check?

Teague wrote:
Fri Nov 03, 2017 9:51 am
Should I stick $9k in these tax-deferred accounts from my final check, or my usual $2-4K?
Neither. Put it all in your taxable account or spend it on something for your family. Congratulations on a secure retirement!

John
by jjustice
Fri Nov 03, 2017 12:39 pm
Forum: Investing - Help with Personal Investments
Topic: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds
Replies: 12
Views: 1176

Re: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds

If they need to annuitize in year 2057, they can transfer dollars into CREF Stock at that time, with zero disadvantages. Yes, in theory. I often hear and read this, but I have never heard or read of anyone who actually funded a CREF annuity with money he or she had saved up in equity mutual funds. ...
by jjustice
Fri Nov 03, 2017 10:14 am
Forum: Investing - Help with Personal Investments
Topic: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds
Replies: 12
Views: 1176

Re: CREF VarAnty funds vs TIAA Access TIAA-CREF Mutual Funds

Your son's partner has access to two of TIAA's best annuity accounts on the same conditions as everyone else: TIAA Traditional and TIAA Real Estate. It is at times like these, with both stocks and bonds high, that TIAA Traditional is at its best. I am very happy to have a significant portion of my o...
by jjustice
Sat Oct 28, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Allocation Question
Replies: 13
Views: 1176

Re: TIAA Allocation Question

I yearn for the simple days of signing up for 70%Cref/30% TIAA! So go for it! You are fortunate to have the R3 class CREF annuity accounts. It sounds like a 60/40 allocation to CREF Stock and Traditional might suit you. You (and I) like TIAA Real Estate also, so you might do 50% CREF Stock, 35% Tra...
by jjustice
Fri Oct 27, 2017 10:14 am
Forum: Investing - Help with Personal Investments
Topic: How Well Do You Know About Retirement Income?
Replies: 40
Views: 5241

Re: How Well Do You Know About Retirement Income?

I got 36/38 and missed the same two questions that jhfenton missed. We may have given the same wrong answers. Twins separated at birth?

John
by jjustice
Wed Oct 25, 2017 6:34 pm
Forum: Investing - Theory, News & General
Topic: TIAA traditional -- How did they do that and What's the catch?
Replies: 31
Views: 3052

Re: TIAA traditional -- How did they do that and What's the catch?

It's for profit: "In 1997, Congress revoked the company’s nonprofit status as part of a tax reform bill, saying the status gave TIAA an unfair advantage over other companies. This meant TIAA’s costs would rise significantly because it would have to pay taxes." from https://www.nytimes.com/2017/10/2...
by jjustice
Wed Oct 25, 2017 11:58 am
Forum: Investing - Theory, News & General
Topic: TIAA traditional -- How did they do that and What's the catch?
Replies: 31
Views: 3052

Re: TIAA traditional -- How did they do that and What's the catch?

I also read the morning star link. The reason I asked this question is because the morningstar forum post about TIAA lawsuit, I only realized TIAA is a for-profit organization yesterday. And that spooked me a little. You need to go back and reread our discussion at Morningstar's TIAA forum. I asked...
by jjustice
Fri Oct 20, 2017 1:04 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Questions
Replies: 13
Views: 1424

Re: TIAA Questions

ResearchMed gave you good information about the Equity Index Accounts (not called funds). I just want to add that, although the variable annuity accounts can be handled just like mutual funds, their great advantage is that when you retire, if you so choose, you can turn them into lifetime annuities....
by jjustice
Wed Oct 18, 2017 1:31 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe:Better To Face The Correction
Replies: 51
Views: 7501

Re: Larry Swedroe:Better To Face The Correction

Noted author Peter Bernstein provided this insight: “In the end, what matters is the quality of our decisions in the face of uncertainty.” I agree with Bernstein. If the decision is full speed ahead with CAPE at 31, I doubt the quality of the decision. Our uncertainty about the dates of corrections ...
by jjustice
Wed Sep 20, 2017 12:31 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security - Applying Online for Age 70 Benefit - Avoiding Retroactive Payments
Replies: 5
Views: 1116

Re: Social Security - Applying Online for Age 70 Benefit - Avoiding Retroactive Payments

I applied online for benefits starting at age 70. I had no trouble. It went smoothly. They aren't going to sneak retroactive payments past you.
John
by jjustice
Mon Sep 18, 2017 6:48 pm
Forum: Personal Finance (Not Investing)
Topic: Equifax Credit Freeze 100% online
Replies: 35
Views: 5927

Re: Equifax Credit Freeze 100% online

The only hiccup was that at Equifax when I did my wife's and my son's they generate a PIN and show you a page with the PIN on it. When i did mine, i got a message saying i had to mail in my information. I figured i would try again a little later. When i did that I was only given the option to tempo...
by jjustice
Thu Jun 29, 2017 6:43 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional Annuity (GSRA) and Bond Fund
Replies: 12
Views: 1437

Re: TIAA Traditional Annuity (GSRA) and Bond Fund

Is TTA TIAA Traditional Annuity? If so, yes, most of my Traditional is in the higher paying RA. I think that many people are unnecessarily spooked by the illiquidity issue. I keep as much as I think, based on experience, I may want to use for rebalancing in a good (bad?) equity bear market in my SRA...
by jjustice
Fri May 05, 2017 1:29 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Traditional reaction to inflation/deflation
Replies: 6
Views: 842

Re: TIAA Traditional reaction to inflation/deflation

You ask what type of bond Traditional would "act more as." The answer is probably neither. Traditional does not have an asset value that fluctuates with interest rates. Here is what TIAA says in its white paper on Traditional: "TIAA Traditional Annuity returns historically have had little or no corr...
by jjustice
Thu May 04, 2017 2:20 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 5025

Re: TIAA Real Estate vs CREF Equity Index

According to their government filing, on 3/31/2017 they had 14.6% leverage.

John
by jjustice
Thu May 04, 2017 12:36 pm
Forum: Investing - Help with Personal Investments
Topic: Cref Stock vs Cref Equity Index
Replies: 8
Views: 846

Re: Cref Stock vs Cref Equity Index

With your proportions of the two accounts you have a 83.5%/16.5% domestic/foreign allocation. If that is the allocation you want, you're good. If you want 30% foreign, go all CREF Stock. If you want 100% domestic, use only Equity Index. CREF Stock is pretty much a closet index fund, with a few basis...
by jjustice
Thu May 04, 2017 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 5025

Re: TIAA Real Estate vs CREF Equity Index

The real estate annuity account does use leverage. From the prospectus: "The Account is authorized to borrow money and assume or obtain a mortgage on a property — i.e., make leveraged real estate investments. Under the Account’s current investment guidelines, management intends to maintain the Accou...
by jjustice
Tue May 02, 2017 10:27 am
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 5025

Re: TIAA Real Estate vs CREF Equity Index

Most, if not all, of the TIAA annuity accounts have just lowered their ERs. For example, CREF Stock R2 is .43%, down from .49%. Makes me happy!
John
by jjustice
Mon May 01, 2017 12:45 pm
Forum: Investing - Help with Personal Investments
Topic: TIAA Real Estate vs CREF Equity Index
Replies: 61
Views: 5025

Re: TIAA Real Estate vs CREF Equity Index

If you want to increase your equities, I wouldn't go with either Real Estate or the Equity Index. Having those two TIAA annuity accounts, you must have access to CREF Stock R1 as well. It has a 30% portion in foreign stock. That's where I would invest if I wanted more equity. Another possibility: if...
by jjustice
Fri Feb 24, 2017 2:50 pm
Forum: Investing - Theory, News & General
Topic: Market Run Ups - Now vs. Then
Replies: 88
Views: 8438

Re: Market Run Ups - Now vs. Then

It seems the same to me: frogs "staying the course" while coming up with reasons why the water hasn't really gotten that hot yet. Besides if it were to get too hot, you wouldn't know when to jump back in. So sit still and be boiled.

John
by jjustice
Fri Feb 24, 2017 11:00 am
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 26563

Re: Extreme Valuations, and why you should reconsider

The preacher said that there is a time for everything under the sun. I think that CAPE nearing 30 is a time for market timing. After all, it is not losses that are being locked in. It is the harvesting of bountiful gains before the crop spoils in the field.

John
by jjustice
Thu Feb 23, 2017 11:09 am
Forum: Investing - Theory, News & General
Topic: Extreme Valuations, and why you should reconsider
Replies: 307
Views: 26563

Re: Extreme Valuations, and why you should reconsider

To me the "Stay the course" mantra is suitable for calming fears in low markets. It is less well used to reassure the greedy in high markets. You stay the course when things are bad, and there is reasonable expectation of things becoming better. I have my doubts about staying the course when things ...
by jjustice
Thu Jan 19, 2017 11:57 am
Forum: Investing - Help with Personal Investments
Topic: When to annuitize?
Replies: 36
Views: 5272

Re: When to annuitize?

I'm not sure what you are confused about, Whomever. There are two things to recognize. First, the payout for an annuitant who has invested over a career is determined by the rates of the various vintages to which he or she has contributed. Second, current rates have an effect. They affect the rates ...
by jjustice
Wed Jan 18, 2017 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: When to annuitize?
Replies: 36
Views: 5272

Re: When to annuitize?

Just saw TomP10's reply: "If you move everything to an annuity today, and then two years from now interest rates are significantly higher, you will regret the move" Is that true for TIAA Trad? My understanding is that it isn't, i.e. if two people have equal current Trad balances today, and one annu...
by jjustice
Wed Oct 19, 2016 9:20 am
Forum: Investing - Help with Personal Investments
Topic: TIAA traditional: annuity vs. RMD
Replies: 7
Views: 1317

Re: TIAA traditional: annuity vs. RMD

You say that leaving an estate is not a consideration and that you have a wife 8 years younger than you. To me, this is an ideal situation for a two-life annuity. The annuity will provide a reliable income for both of you for life. It also sounds like there is no need for a guarantee period. You can...
by jjustice
Tue Oct 18, 2016 9:17 am
Forum: Personal Finance (Not Investing)
Topic: SS COLA for 2017 will be 0.3% [Cost of Living Adjustment]
Replies: 34
Views: 3868

Re: SS COLA for 2017 will be 0.4%

So why is the social security administration announcing 0.3%? [OT comment removed by admin LadyGeek] Or did pshonore get the CPI-W numbers wrong? Inquiring minds want to know.

John
by jjustice
Tue Oct 18, 2016 8:48 am
Forum: Personal Finance (Not Investing)
Topic: SS COLA for 2017 will be 0.3% [Cost of Living Adjustment]
Replies: 34
Views: 3868

Re: SS COLA for 2017 will be 0.4%

News organizations are saying 0.3%. Perhaps pshonore did calculate from last year's CPI-W?

John
by jjustice
Sun Oct 02, 2016 11:38 am
Forum: Personal Consumer Issues
Topic: Where/how do Bogleheads get their tires inflated?
Replies: 97
Views: 8512

Re: Where/how do Bogleheads get their tires inflated?

Schwinn Floor Pump (bicycle pump) $21.95 at Amazon. Very easy and has all the valve attachments that you could ever need. My daughter gave it to me for Christmas one year--great gift.

John
by jjustice
Fri Sep 23, 2016 1:01 pm
Forum: Investing - Theory, News & General
Topic: TIAA traditional and real estate
Replies: 17
Views: 2022

Re: TIAA traditional and real estate

Just about everything that you might want to know about TIAA Traditional is covered in this White Paper.

https://www.tiaa.org/public/pdf/complia ... -paper.pdf

John
by jjustice
Wed Aug 17, 2016 2:00 pm
Forum: Investing - Theory, News & General
Topic: [403b fiduciary lawsuits: MIT Yale NYU Duke Hopkins Penn Vanderbilt Emory Columbia]
Replies: 64
Views: 7409

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 30% MSCI All Country World Ex USA. Even ...
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: 1295

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: 37
Views: 3200

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: 84
Views: 11621

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 the terminology shift accoumpl...
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: 84
Views: 11621

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: 941

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