Maintaining TIAA Traditional after moving substantial holdings to Vanguard

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imretired
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Joined: Wed Jun 13, 2018 8:44 pm

Maintaining TIAA Traditional after moving substantial holdings to Vanguard

Post by imretired » Wed Jun 13, 2018 8:48 pm

Retiring after years of contributions to TIAA, we’ve noticed that we’re paying a lot more in expense ratios than we would if we were invested in Vanguard. So we’re thinking about moving some of ours funds to Vanguard but retaining with TIAA, in each account, the Traditional holdings plus some cushion of other holdings so that, when we withdraw the RMDs (we’ve just turned 70.5), we can avoid withdrawing the Traditional. We’re having difficulty calculating the cushion sizes (relative to the TIAA holdings), and we need some help in this. Also, assuming that we’d like our overall portfolio to be 60 (stocks)-40 (bonds), how would we allocate the fixed income and equities in the cushion, while keeping our Traditional money intact. Any ideas?

Call_Me_Op
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Location: Milky Way

Re: Maintaining TIAA Traditional after moving substantial holdings to Vanguard

Post by Call_Me_Op » Thu Jun 14, 2018 6:51 am

imretired wrote:
Wed Jun 13, 2018 8:48 pm
Retiring after years of contributions to TIAA, we’ve noticed that we’re paying a lot more in expense ratios than we would if we were invested in Vanguard. So we’re thinking about moving some of ours funds to Vanguard but retaining with TIAA, in each account, the Traditional holdings plus some cushion of other holdings so that, when we withdraw the RMDs (we’ve just turned 70.5), we can avoid withdrawing the Traditional. We’re having difficulty calculating the cushion sizes (relative to the TIAA holdings), and we need some help in this. Also, assuming that we’d like our overall portfolio to be 60 (stocks)-40 (bonds), how would we allocate the fixed income and equities in the cushion, while keeping our Traditional money intact. Any ideas?
Two things for you to consider, although not directly answering your questions.

1.) Rolling money into an IRA may reduce creditor protections. Check applicable state law.

2.) TIAA has a couple of unique investments you will not find at Vanguard, one being TIAA Traditional and the other being the Real Estate Fund. So you may want to keep some money in those vehicles.

TIAA Traditional can be used as part of your fixed income.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

The Wizard
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Location: Reading, MA

Re: Maintaining TIAA Traditional after moving substantial holdings to Vanguard

Post by The Wizard » Thu Jun 14, 2018 7:07 am

I agree with keeping some funds in Trad and TREA.
Other stock funds will depend on your expense ratio class; if R3 then not so bad.

Additionally, you should be thinking about annuitizing a portion of your TIAA assets for lifetime income around age 70. This assumes your health and life expectancy are decently good...
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