tiaa/cref lazy portfolio

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rerod
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tiaa/cref lazy portfolio

Postby rerod » Sat Jul 18, 2015 9:09 pm

Hello everyone.

One of these days I will answer all the questions when asking for portfolio advice. Its complicated..
But this question doesn't ask percentages. Only, which mutual funds.

I allowed the Ibbotson calculator to decide which tiaa/cref funds to invest in 3 months ago. But its to cumbersome for a simpleton like myself and to aggressive and high ER's.

Two funds are already decided. TIAA traditional, and TIAA Real Estate as my fixed income, unless I should consider another. But which equity funds should I consider to be well diversified?

I have these to choose from. I wish they had more choices for vanguard as the ER's in the others are allot higher.


American Funds Capital Income Builder Fund Class R6 ER .29%
American Funds Capital World Growth and Income Fund - R6 0.44%
American Funds EuroPacific Growth Fund - R6 0.49%
American Funds Fundamental Investors Fund Class R6 0.31%
American Funds Growth Fund of America - R6 0.33%
American Funds New Perspective R6 0.45%
American Funds Washington Mutual Investors Fund R6 0.30%
CREF Equity Index R3 0.29%
CREF Global Equities R3 .38%
CREF Growth R3 0.32%
CREF Stock R3 .37%
Forward International Small Companies Fund Institutional 1.30%
Harbor International Fund Institutional Class 0.75%
Lazard Emerging Markets Equity Portfolio Institutional Class 1.09%
Royce Micro-Cap Fund Investment Class 1.48%
Royce Premier Instl 0.98%
T. Rowe Price Growth Stock Fund 0.68%
TIAA-CREF Emerging Markets Equity Fund - Institutional Class 0.95%
TIAA-CREF Emerging Markets Equity Index Fund - Instl Class 0.23%
TIAA-CREF Equity Index Fund - Institutional Class 0.05%
TIAA-CREF Global Natural Resources Fund - Institutional Cl 0.74%
TIAA-CREF Growth & Income Fund - Institutional Class 0.42%
TIAA-CREF International Equity Fund - Institutional Class 0.49%
TIAA-CREF International Equity Index Fund - Instl Class 0.06%
TIAA-CREF Real Estate Securities Fund - Institutional Class 0.52%
TIAA-CREF S&P 500 Index Fund - Institutional Class 0.06%
TIAA-CREF Social Choice Equity Fund - Institutional Class 0.18%
Thornburg International Value R5 0.99%
VICTORY MUN MIDCAP CORE GROW Y 1.13%
Vanguard Developed Markets Index Fund Institutional Shares 0.07%
Vanguard Extended Market Index Fund Institutional 0.08%
Vanguard Institutional Index Fund Institutional 0.04%

Thanks!
Last edited by rerod on Sun Jul 19, 2015 8:52 am, edited 1 time in total.

sawhorse
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Re: tiaa/cref lazy portfolio

Postby sawhorse » Sat Jul 18, 2015 11:06 pm

What are each of the expense ratios? They vary substantially by employer plan. In my R3 plan the index funds have ERs comparable to Vanguard.

ralph124cf
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Re: tiaa/cref lazy portfolio

Postby ralph124cf » Sun Jul 19, 2015 7:41 am

I like the TIAA Real Estate fund, but I am not sure why you are including it as fixed income.

Ralph

maitrina
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Re: tiaa/cref lazy portfolio

Postby maitrina » Sun Jul 19, 2015 8:52 am

I use the TIAA-CREF Equity Index Fund and the TIAA-CREF International Equity Index Fund to deal with my laziness. Time for a nap.
"I'd like to live like a poor man with lots of money." - Pablo Picasso

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Sun Jul 19, 2015 9:03 am

sawhorse wrote:What are each of the expense ratios? They vary substantially by employer plan. In my R3 plan the index funds have ERs comparable to Vanguard.


I added the expense ratios sawhorse..


ralph124cf wrote:I like the TIAA Real Estate fund, but I am not sure why you are including it as fixed income.

Ralph


That's a good point Ralph, as Iv read it should be viewed as roughly 50% equity/50% fixed income.

I like the TIAA traditional guaranteed as fixed income especially with today's interest rates climbing.. But don't like the fact I can only move 10% annually.

On the other hand, I bought and hold allot of vbtlx november 2012, right before interest rates started to climb and am still in denial.

So where do you run to? Equities are swinging all over the map, and rising interest rates threatening bond returns..

Beth*
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Re: tiaa/cref lazy portfolio

Postby Beth* » Sun Jul 19, 2015 12:37 pm

If you goal is to keep it simple, use the CREF Stock Fund for all your equity holdings. It is basically an index fund weighted 70 percent domestic (using the Russell 3000 Index) and 30 percent international (includes both developed and emerging markets). You have access to the R1 fund which has an ER of .37 which is very good for a retirement plan. I use the CREF Stock Fund and I only have access to the R2 which has an ER of .46.

If you want to start playing around and saving at the margins on your ER, use a combination of the TIAA-CREF Equity Index Fund Institutional Class for domestic stocks (ER .05) and a combination of the TIAA-CREF International Equity Index Fund Institutional Class (ER .06) and the TIAA-CREF Emerging Markets Equity Index Fund (ER .23) for your international exposure. That will require somewhat more work on your part to both set up the portfolio and rebalance it.

sawhorse
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Re: tiaa/cref lazy portfolio

Postby sawhorse » Sun Jul 19, 2015 1:01 pm

Beth* wrote:If you goal is to keep it simple, use the CREF Stock Fund for all your equity holdings. It is basically an index fund weighted 70 percent domestic (using the Russell 3000 Index) and 30 percent international (includes both developed and emerging markets). You have access to the R1 fund which has an ER of .37 which is very good for a retirement plan. I use the CREF Stock Fund and I only have access to the R2 which has an ER of .46.

If you want to start playing around and saving at the margins on your ER, use a combination of the TIAA-CREF Equity Index Fund Institutional Class for domestic stocks (ER .05) and a combination of the TIAA-CREF International Equity Index Fund Institutional Class (ER .06) and the TIAA-CREF Emerging Markets Equity Index Fund (ER .23) for your international exposure. That will require somewhat more work on your part to both set up the portfolio and rebalance it.

Great advice. You have a fantastic selection of funds in your plan. The TIAA CREF index funds are very similar to the Vanguard funds with ERs to match so no reason to lament the fact that you don't have an account at Vanguard.

rerod
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Location: Iowa

Re: tiaa/cref lazy portfolio

Postby rerod » Wed Jul 29, 2015 1:58 pm

Beth* wrote:If you want to start playing around and saving at the margins on your ER, use a combination of the TIAA-CREF Equity Index Fund Institutional Class for domestic stocks (ER .05) and a combination of the TIAA-CREF International Equity Index Fund Institutional Class (ER .06) and the TIAA-CREF Emerging Markets Equity Index Fund (ER .23) for your international exposure. That will require somewhat more work on your part to both set up the portfolio and rebalance it.


Thanks. I need to consider the TCIEX / TEQKX mix instead of QCSTIX, cref stock. TCIEX / TEQKX mix is more diversified and lower ER

But what has me confused is, I'm wanting to go 50/50 but don't want to buy more traditional because I want to be able to move it.

Should I keep my 13% Guaranteed traditional and have 13% in equities (cref stock or TCIEX / TEQKX mix), and 74% real estate since I consider RE 50%-50%?

That sounds awful heavy in Real Estate.

Any suggestions on what other fixed income I should use?

JRA
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Re: tiaa/cref lazy portfolio

Postby JRA » Wed Jul 29, 2015 2:41 pm

I would recommend the following portfolio for your equities:
Vanguard Institutional Index Fund Institutional: 40%
Vanguard Extended Market Index Fund Institutional: 10%
Vanguard Developed Markets Index Fund Institutional Shares: 40%
TIAA-CREF Emerging Markets Equity Index Fund - Instl Class: 10%
Since no one knows which one will outperform, it splits domestic and international, roughly equaling market weights in both classes. Secondly, it is the least expensive. Why someone would pay 37 basis points for simplicities sake is beyond my comprehension (Cref Stock), and Cref Stock includes an active management component as well. Finally, the Real Estate Fund is only "fixed income" to the extent that approximately 20% of the portfolio is invested in treasuries. The rest is invested in direct ownership of commercial real estate and Reits. Both of these can prove to be quite risky as is evidenced in the 2008-09 financial crisis. I admit that this portfolio might take you a couple of extra minutes a year to manage, but you can add those minutes to the time you allocate to maintaining a proper equity-fixed income ratio. The only way to truly have a "lazy" portfolio is to buy a fund of funds, but the American Funds in your plan are a lot more expensive and actively managed.

Just some friendly suggestions. . . Good luck.

jalbert
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Re: tiaa/cref lazy portfolio

Postby jalbert » Wed Jul 29, 2015 3:18 pm

60% cref stock
15% tiaa real estate
25% fixed income (you pick)

is tiaa-cref's recomnendation for a lazy portfolio. You can adjust the weightings if desired. Decide on an asset allocation, and they implement the asset class in a single fund. The above weightings can be used throughout one's career as well, and are their recommendation for an efficient portfolio.

-jalbert

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Wed Jul 29, 2015 3:20 pm

JRA wrote: Why someone would pay 37 basis points for simplicities sake is beyond my comprehension ?

Just some friendly suggestions. . . Good luck.


That's is a great question about cref stock JRA. And thanks for your cheaper fund suggestions for the equities half of my portfolio. I had no idea, and still have a hard time understanding all the different funds. I find it increasingly difficult to accomplish all of lifes chores lately.

jalbert wrote:60% cref stock
15% tiaa real estate
25% fixed income (you pick)

is tiaa-cref's recommendation for a lazy portfolio. You can adjust the weightings if desired. Decide on an asset allocation, and they implement the asset class in a single fund. The above weightings can be used throughout one's career as well, and are their recommendation for an efficient portfolio.

-jalbert


The you pick part is difficult. Im still reeling from my vbtlx buy in my taxable account.

traveltoomuch
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Re: tiaa/cref lazy portfolio

Postby traveltoomuch » Wed Jul 29, 2015 4:04 pm

That is an amazing selection of funds. Don't discount the Vanguard funds at the bottom of that list. They're almost all you need.

I love the idea of using TIAA Real Estate, but only if you're intending to market time it. Search here for "TREA". (And if you are, in fact, willing to be attentive and market time it, I have no objection to using a lot of it.)

Even though you have access to the R3 class of CREF annuities, I would still skip them all. On the domestic side, I would instead use an 20:80 ratio of: Vanguard Extended Market Index Fund and Vanguard Institutional Index Fund.
(see http://www.bogleheads.org/wiki/Approxim ... ock_market)

You have several international choices. Especially since it's available in dirt-cheap (as active funds go) R6 share class, consider the American Funds EuroPacific Growth Fund, perhaps 50:50 with the Vanguard Developed Markets Index Fund. If you want, add a little bit of the TIAA-CREF Emerging Markets Equity Index Fund.

sharpjm
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Re: tiaa/cref lazy portfolio

Postby sharpjm » Wed Jul 29, 2015 4:37 pm

I use the following in my TIAA CREF Account:
TIAA-CREF Equity Index Fund - Institutional Class 0.05%
TIAA-CREF International Equity Index Fund - Instl Class 0.06%
TIAA-CREF Emerging Markets Equity Index Fund - Instl Class 0.23%

I also have a total bond index fund available to finish off my 3-fund portfolio.

Be sure you pick the equity index funds! There is only 1 word difference between "Equity Fund" and "Equity Index Fund" and once I accidentally rebalanced into the non-index version of an international fund. I had to wait 60 days to avoid the 2% penalty that TIAA-CREF charges for flip flopping those funds in short time frames.

But keep in mind that both TIAA-CREF International funds don't have small-cap exposure and the developed markets fund does not include Canada. I don't know much about those vanguard funds but they may have limitations as well since they are not analogs to VEA/VWO.

I wouldn't use TIAA traditional as the only fixed income investment. You want to have some liquid fixed income that is available for you to rebalance in the event another 2008 happens.

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Wed Jul 29, 2015 4:39 pm

traveltoomuch wrote:I love the idea of using TIAA Real Estate, but only if you're intending to market time it. Search here for "TREA". (And if you are, in fact, willing to be attentive and market time it, I have no objection to using a lot of it.)
.


The only timing I can pull off is after a correction, and getting more aggressive. Now I ask myself why have I held onto real estate fund all these years. And why I was thinking about investing 70 some percent of my retirement in it.

I will hold onto the 13% of traditional. I feel comfortable making a decision on the equities side of my port with all the input here. But still unsure and reluctant about which fixed income fund.

sharpjm wrote:I wouldn't use TIAA traditional as the only fixed income investment. You want to have some liquid fixed income that is available for you to rebalance in the event another 2008 happens.


Exactly!
Last edited by rerod on Thu Jul 30, 2015 8:48 am, edited 1 time in total.

jalbert
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Re: tiaa/cref lazy portfolio

Postby jalbert » Wed Jul 29, 2015 4:52 pm

Vbtlx should be held in a tax qualified acct if possible. If you have a good balance of taxable and qualified accounts, hold vanguard index funds in your taxable acct, tiaa real estate and traditional annuity in your group retirement account, and hold some cref stock in your GRA (or some muni bonds in your taxable acct if you have a large taxable account) to meet your asset allocation.

Split tiaa trafitional with cref bond market if you want more liquidity to rebalance, or just use tiaa traditional available liquidity and redirection of future contributions to rebalance.

-jalbert

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Thu Jul 30, 2015 7:40 am

I think I might have a 50/50 port I can live with now..

VINIX .04% ER, Vanguard Institutional Idx 20%
VEXMX .08% ER, Vanguard Extended Market Idx 5%
VTMGX .07% ER, Vanguard Developed Markets Idx 20%
TEQLX .23% ER, TIAA-CREF Emerging Markets Eq Idx 5%
============
TIAA traditional 25%
QCBMIX .37% ER, CREF bond market 25%

Does that look better? I know its not a lazy port, but I can still understand it.

But I read something about traditional ..

"Lock up for Traditional is for RA/GRA, but not for SRA/GSRA. My Traditional is liquid although I get only 3.15%+ rate."

Can someone explain the above comment please?
Last edited by rerod on Thu Jul 30, 2015 8:53 am, edited 2 times in total.

traveltoomuch
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Re: tiaa/cref lazy portfolio

Postby traveltoomuch » Thu Jul 30, 2015 7:55 am

rerod wrote:"Lock up for Traditional is for RA/GRA, but not for SRA/GSRA. My Traditional is liquid although I get only 3.15%+ rate."


As I recall:

Within a retirement annuity or group retirement annuity, TIAA traditional can only be withdrawn over a ten year period. Within a supplemental retirement annuity or group supplemental retirement annuity, you can withdraw the full amount any time. Different account types, different rules. But you pay dearly for the flexibility. The former are paying 3.9% currently. The latter are only paying 3.15%.

Beth*
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Re: tiaa/cref lazy portfolio

Postby Beth* » Thu Jul 30, 2015 9:06 am

rerod wrote:Should I keep my 13% Guaranteed traditional and have 13% in equities (cref stock or TCIEX / TEQKX mix), and 74% real estate since I consider RE 50%-50%?


I have no idea why you would want to you 74 percent real estate. It sounds way too high to me. If you are looking for an alternative to TIAA Traditional that is less volatile than stocks, the general recommendation is to use a bond fund. I don't see a bond fund listed among the funds in your original post, but I can't believe that your plan doesn't have one. I also don't see any target retirement date funds listed and almost every retirement plan has those. Can you double-check and make sure that you have listed all the options in your plan? If you have, and there really is not bond fund or target retirement date fund I think you need to talk to the plan administrators.

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Thu Jul 30, 2015 10:08 am

American Funds Capital Income Builder Fund Class R6
American Funds Capital World Growth and Income Fund - R6
American Funds EuroPacific Growth Fund - R6
American Funds Fundamental Investors Fund Class R6
American Funds Growth Fund of America - R6
American Funds New Perspective R6
American Funds Washington Mutual Investors Fund R6
CREF Equity Index R3
CREF Global Equities R3
CREF Growth R3
CREF Stock R3
Columbia Mid Cap Value Z
Columbia Small Cap Value I Z
Eaton Vance Large Cap Value I
Forward International Small Companies Fund Institutional
Harbor International Fund Institutional Class
Lazard Emerging Markets Equity Portfolio Institutional Class
Royce Micro-Cap Fund Investment Class
Royce Premier Instl
T. Rowe Price Growth Stock Fund
TIAA-CREF Emerging Markets Equity Fund - Institutional Class
TIAA-CREF Emerging Markets Equity Index Fund - Instl Class
TIAA-CREF Equity Index Fund - Institutional Class
TIAA-CREF Global Natural Resources Fund - Institutional Cl
TIAA-CREF Growth & Income Fund - Institutional Class
TIAA-CREF International Equity Fund - Institutional Class
TIAA-CREF International Equity Index Fund - Instl Class
TIAA-CREF Large-Cap Growth Fund - Institutional Class
TIAA-CREF Large-Cap Growth Index Fund - Institutional Class
TIAA-CREF Large-Cap Value Fund - Institutional Class
TIAA-CREF Large-Cap Value Index Fund - Institutional Class
TIAA-CREF Mid-Cap Growth Fund - Institutional Class
TIAA-CREF Mid-Cap Value Fund - Institutional Class
TIAA-CREF Real Estate Securities Fund - Institutional Class
TIAA-CREF S&P 500 Index Fund - Institutional Class
TIAA-CREF Small-Cap Blend Index Fund - Institutional Class
TIAA-CREF Small-Cap Equity Fund - Institutional Class
TIAA-CREF Social Choice Equity Fund - Institutional Class
Thornburg International Value R5
VICTORY MUN MIDCAP CORE GROW Y
Vanguard Developed Markets Index Fund Institutional Shares
Vanguard Extended Market Index Fund Institutional
Vanguard Institutional Index Fund Institutional
Vanguard Small-Cap Growth Index Fund Institutional
Vanguard Small-Cap Index Fund Institutional
Fixed Income
CREF Bond Market R3
CREF Inflation-Linked Bond R3
Goldman Sachs Government Income Instl
MainStay High Yield Corporate Bond I
Oppenheimer Senior Floating Rate Fund Class I
PIMCO Total Return Instl
TIAA-CREF High-Yield Fund - Institutional Class
TIAA-CREF Short-Term Bond Fund - Institutional Class
TIAA-CREF Social Choice Bond Fund - Institutional Class
Templeton Global Bond Fund Advisor Class Shares
Vanguard Total Bond Market Index Fund Institutional
Western Asset Core Plus Bond
Guaranteed
TIAA Traditional
CREF Money Market R3
Multi-Asset
American Funds Income Fund of America R6
CREF Social Choice R3
T. Rowe Price Cpital Appreciation Fund
TIAA-CREF Lifecycle Index 2010 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2015 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2020 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2025 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2030 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2035 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2040 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2045 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2050 Fund - Institutional Class
TIAA-CREF Lifecycle Index 2055 Fund - Institutional Class
TIAA-CREF Lifecycle Index Retirement Income Fund - Instl Cl
Real Estate
TIAA Real Estate

CFM300
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Re: tiaa/cref lazy portfolio

Postby CFM300 » Thu Jul 30, 2015 10:17 am

rerod wrote:I think I might have a 50/50 port I can live with now..

VINIX .04% ER, Vanguard Institutional Idx 20%
VEXMX .08% ER, Vanguard Extended Market Idx 5%
VTMGX .07% ER, Vanguard Developed Markets Idx 20%
TEQLX .23% ER, TIAA-CREF Emerging Markets Eq Idx 5%
============
TIAA traditional 25%
QCBMIX .37% ER, CREF bond market 25%

Why not drop the first two for the single fund, TIAA-CREF Equity Index Fund - Institutional Class 0.05%?

It has a nearly identical expense ratio (0.05% vs. 0.048% for the Vanguard combination) and it tracks the Russell 3000, which covers the entire U.S. market except microcaps.

If you want to try to make up for the lost two-tenths of one percent, you can use TIAA-CREF International Equity Index Fund - Instl Class 0.06%, rather than Vanguard Developed Market 0.07%.

So, for equity, this:

25% TIAA-CREF Equity Index Fund - Institutional Class
20% TIAA-CREF International Equity Index Fund
5% TIAA-CREF Emerging Markets Eq Idx

If it were me, I wouldn't even worry about having a 5% exposure to Emerging Markets. So I'd go with this:

25% TIAA-CREF Equity Index Fund - Institutional Class
25% TIAA-CREF International Equity Index Fund

Add your 25% Traditional and 25% CREF bond, and you've got a nice quarter-style portfolio.

CFM300
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Re: tiaa/cref lazy portfolio

Postby CFM300 » Thu Jul 30, 2015 10:19 am

Just saw your post above listing bond funds. If the expense ratio of Vanguard's Total Bond fund is less than the CREF bond fund, I'd go with it, obviously.

CyclingDuo
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Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Mon Jan 09, 2017 12:51 pm

Bumping this thread in search of what is available at employer's 403b (limited choices) to solicit advice from those of you who are also stuck in an employer 403b plan that may have limited choices, and not the lowest fees.

Currently invested in the Lifecycle 2025 (age 55 with 10-12 more years of work and contributions in this plan). In essence, it has acted as a lazy portfolio of sorts. Currently, the Lifecycle 2025 Fund's target allocation consists of an equity/fixed-income/direct real estate mix of approximately 61.1%/36.4%/2.5%

The current amount in the 403b is equal to 7.5% - 8% of overall household portfolio, and about 15%-16% of overall retirement accounts (403b/401a/IRA's/Deferred Annuity).

• TIAA-CREF Lifecycle 2025 Fund Retirement (ER .66)

Here are what at least looks like the only possible choices to attempt to attempt a lazy portfolio and possibly lower the ER a bit:

• CREF Equity Index Account (ER .42)***
• CREF Stock Account (ER .49)***
• CREF Growth Account (ER .46)
• CREF Global Equities Account (ER .53)
• CREF Inflation-Linked Bond Account (ER .44)
• CREF Bond Market Account (ER .44)***
• CREF Inflation-Linked Bond Account (ER .41)
• TIAA-CREF Small-Cap Equity Fund Retirement (ER .73)
• TIAA-CREF Mid-Cap Value Fund Retirement (ER .71)
• TIAA-CREF Mid-Cap Growth Fund Retirement (ER .73)
• TIAA-CREF International Equity Fund Retirement (ER .78)
• TIAA-CREF Large-Cap Value Fund Retirement (ER .71)
• TIAA Real Estate Account (ER .90)

***Possibly switch to these cut ER and get a lazy balance?

The rest are all the Lifecycle funds and money market funds.

TIA for any suggestions. Keep in mind, the plan is the only choice available to take advantage of employer match contributions. Any thoughts on what you would do if in a similar situation? It would be possible to pick up any funds at Fidelity in our IRA's to offset what is not possible at TIAA-CREF.

Update: The employer plan changed and now also include these!

Vanguard Total International Stock Fund Index Admiral (ER .12))
Vanguard Extended Market Index Fund Admiral (ER .09)
Vanguard 500 Index Fund Admiral (ER .05)
Vanguard Total Bond Market Fund Admiral (ER .06)
Last edited by CyclingDuo on Sat Jan 14, 2017 5:03 am, edited 3 times in total.

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mrc
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Re: tiaa/cref lazy portfolio

Postby mrc » Mon Jan 09, 2017 1:42 pm

With such a small amount of your overall portfolio here (for now at least), could you choose the lowest ER fund 100% and let it ride? Direct new contribs there as well. Balance your AA with the assets outside of this account. Don't give up on the employer match -- that generally overwhelms even poor ERs.
A great challenge of life: Knowing enough to think you're doing it right, but not enough to know you're doing it wrong. — Neil deGrasse Tyson

CyclingDuo
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Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Mon Jan 09, 2017 7:39 pm

With such a small amount of your overall portfolio here (for now at least), could you choose the lowest ER fund 100% and let it ride? Direct new contribs there as well. Balance your AA with the assets outside of this account. Don't give up on the employer match -- that generally overwhelms even poor ERs.


Yes, could certainly do that with one of the lower cost funds and pick up the other portion of the trilogy at Fidelity in our IRA's.

Yes, you are correct - there is no way one wants to bypass the employer match benefit. :moneybag

Unfortunately, after enjoying over 10+ years of an 8% employer match, it got cut to 6% for the past two years, and was cut to 5% this current academic calendar year. It seems the employer wants to move our institution to more of an industry standard rate of 4% match. Sorry to see those :dollar 's go, as the 8% match was really helping move things :arrow:

student
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Re: tiaa/cref lazy portfolio

Postby student » Mon Jan 09, 2017 7:47 pm

CyclingDuo wrote:Unfortunately, after enjoying over 10+ years of an 8% employer match, it got cut to 6% for the past two years, and was cut to 5% this current academic calendar year. It seems the employer wants to move our institution to more of an industry standard rate of 4% match. Sorry to see those :dollar 's go, as the 8% match was really helping move things :arrow:


This is horrible. Since you mentioned academic calendar, I assume that you work at a university. If you don't mind me asking, is this a public or private university? Of the universities that I am aware of, for those that not offer a pension, they usually offer 10%.

CyclingDuo
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Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Mon Jan 09, 2017 8:22 pm

This is horrible. Since you mentioned academic calendar, I assume that you work at a university. If you don't mind me asking, is this a public or private university? Of the universities that I am aware of, for those that not offer a pension, they usually offer 10%.


Small, private college. And yes, it has not been welcome.

student
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Re: tiaa/cref lazy portfolio

Postby student » Mon Jan 09, 2017 8:30 pm

CyclingDuo wrote:
This is horrible. Since you mentioned academic calendar, I assume that you work at a university. If you don't mind me asking, is this a public or private university? Of the universities that I am aware of, for those that not offer a pension, they usually offer 10%.


Small, private college. And yes, it has not been welcome.


Thanks for the info.

CyclingDuo
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Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Wed Jan 11, 2017 11:26 am

mrc wrote:With such a small amount of your overall portfolio here (for now at least), could you choose the lowest ER fund 100% and let it ride? Direct new contribs there as well. Balance your AA with the assets outside of this account. Don't give up on the employer match -- that generally overwhelms even poor ERs.


Exciting Update: It looks like my employer has switched plans at TIAA, and my account at TIAA has the largest portion in the old plan with about $7K in the new plan which I have been contributing to since they switched. This thread has helped investigate my TIAA holding and options. I just switched all of the funds from the old plan to the new plan today on the phone.

Under this new plan with all of my TIAA portfolio, I have available the following funds now at TIAA...

Vanguard Total International Stock Fund Index Admiral (ER .12))
Vanguard Extended Market Index Fund Admiral (ER .09)
Vanguard 500 Index Fund Admiral (ER .05)
Vanguard Total Bond Market Fund Admiral (ER .06)

That's a marked improvement from the .66 I have been paying on the LIfeCycle 2025 fund. Once the transfer is complete, all I need to do is move into a suggested grouping of these funds. Since I don't have the Total Stock Market Index Fund - should I divide up between the Extended Market Index Fund and the 500 Index Fund for that portion?

TIA
Last edited by CyclingDuo on Sat Jan 14, 2017 4:47 am, edited 1 time in total.

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oldzey
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Re: tiaa/cref lazy portfolio

Postby oldzey » Wed Jan 11, 2017 2:10 pm

Here's what I would do:

TIAA-CREF Equity Index Fund - Institutional Class - 65%
TIAA Traditional - 25%
TIAA Real Estate Account - 10%

I don't use international myself, but if I wanted some I'd swap out some of the Equity Index Fund with this (up to 20% of my portfolio):

TIAA-CREF International Equity Index Fund - Instl Class
"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

rerod
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Re: tiaa/cref lazy portfolio

Postby rerod » Wed Jan 11, 2017 3:33 pm

For my US equity portion, I did a 4 : 1 mix of VINIX and VEXMX, which is a reasonable proxy for the VG Total Stock market (VTSMX) but with a lower ER because VTSMX wasn't offered in my choices.

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mrc
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Re: tiaa/cref lazy portfolio

Postby mrc » Thu Jan 12, 2017 5:07 am

CyclingDuo wrote:Exciting Update: It looks like my employer has switched plans at TIAA ...


That is great news. Others will have allocation ideas. I'm just glad you found a plan you can live wtih.

We just made a similar move without our TIAA holdings: transferred funds from a small employer's higher ER plan to a large employer's lower ER plan. Don't know why I didn't do that earlier.
A great challenge of life: Knowing enough to think you're doing it right, but not enough to know you're doing it wrong. — Neil deGrasse Tyson

Valuethinker
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Re: tiaa/cref lazy portfolio

Postby Valuethinker » Thu Jan 12, 2017 8:08 am

CyclingDuo wrote:
mrc wrote:With such a small amount of your overall portfolio here (for now at least), could you choose the lowest ER fund 100% and let it ride? Direct new contribs there as well. Balance your AA with the assets outside of this account. Don't give up on the employer match -- that generally overwhelms even poor ERs.


Exciting Update: It looks like my employer has switched plans at TIAA, and my account at TIAA has the largest portion in the old plan with about $7K in the new plan which I have been contributing to since they switched. This thread has helped investigate my TIAA holding and options. I just switched all of the funds from the old plan to the new plan today on the phone.

Under this new plan with all of my TIAA portfolio, I have available the following funds now at TIAA...

Vanguard Total International Stock Fund Index Admiral (ER .12))
Vanguard Extended Market Index Fund Admiral (ER .09)
Vanguard 500 Index Fund Admiral (ER .05)


To cover the US market, roughly speaking the split of $100 in the 2 funds would be $85 S&P500 $15 Extended Market Index.

History says that this won't make a big difference to your performance over S&P 500 index fund ($100). And you pay a very slightly higher expense ratio. But I am someone who believes that since we cannot call what "factor" would do well in the future (small cap v. large cap, say) we should try to grab all factors.

A portfolio like:

20% international fund
34% S&P500 fund
6% market extension fund
40% Total Bond Market fund

Should serve you well. If you are under 35 you could consider 10% more in equities (spread in proportion across the funds) and 30% in bonds. Over 50 you might consider 50% in bonds.

On the TIAA RE annuity we have debated it many times in many places here. I would say it is a "nice to have" not a "must have" and if you do have it, 10% is about the right amount. DO NOT treat it as a bond equivalent. 10% in TIAA RE is more like putting 6% in equities and 4% in bonds, or, in fact, 10% in equities. The underlying asset class (Commercial Real Estate) is volatile, and you are betting on one asset class, one manager, one portfolio-- that's lot of risk.

CyclingDuo
Posts: 210
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Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Thu Jan 12, 2017 8:34 am

Valuethinker wrote:To cover the US market, roughly speaking the split of $100 in the 2 funds would be $85 S&P500 $15 Extended Market Index.

History says that this won't make a big difference to your performance over S&P 500 index fund ($100). And you pay a very slightly higher expense ratio. But I am someone who believes that since we cannot call what "factor" would do well in the future (small cap v. large cap, say) we should try to grab all factors.

A portfolio like:

20% international fund
34% S&P500 fund
6% market extension fund
40% Total Bond Market fund

Should serve you well. If you are under 35 you could consider 10% more in equities (spread in proportion across the funds) and 30% in bonds. Over 50 you might consider 50% in bonds.


Thank you Valuethinker. Here's to cutting the ER fees and moving forward! :sharebeer :moneybag

CyclingDuo
Posts: 210
Joined: Fri Jan 06, 2017 9:07 am

Re: tiaa/cref lazy portfolio

Postby CyclingDuo » Sat Jan 14, 2017 4:59 am

mrc wrote:
CyclingDuo wrote:Exciting Update: It looks like my employer has switched plans at TIAA ...


That is great news. Others will have allocation ideas. I'm just glad you found a plan you can live wtih.

We just made a similar move without our TIAA holdings: transferred funds from a small employer's higher ER plan to a large employer's lower ER plan. Don't know why I didn't do that earlier.


That's why we are all here, right? To learn.

Or should we say.... "Quibbles and sense (cents)!" 8-)


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