Pros and cons of leaving funds at TIAA

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Topic Author
MBL
Posts: 11
Joined: Tue Sep 18, 2018 3:49 pm

Pros and cons of leaving funds at TIAA

Post by MBL » Thu May 30, 2019 10:38 am

Retired two years ago after 34 year career in higher ed. My 403(b) is with TIAA, with 60% in Traditional (taking interest only from it now) and 40% in variable. What are the pros and cons of leaving the variable money with TIAA versus moving it to an IRA. Would love to hear from anyone who has already gone down that path. I plan to leave the Trad money in place and continue taking interest, with the option of converting to lifetime income stream if needed. My husband's pension and a few other income sources are enough for now. We both have Roth IRAs that we have not tapped, and neither of us has started SS yet. We also purchased a single premium fixed indexed annuity a couple of years ago that we have not tapped yet. Had planned on taking that as joint income in 7 years when he reaches 70 until I read about the tax tornado! Maybe we should start it a bit earlier. He may start SS next year when he turns 64. I will plan to wait until 70. Am 61 now.

dh
Posts: 363
Joined: Sun Mar 13, 2011 8:01 pm

Re: Pros and cons of leaving funds at TIAA

Post by dh » Thu May 30, 2019 11:05 am

MBL wrote:
Thu May 30, 2019 10:38 am
Retired two years ago after 34 year career in higher ed. My 403(b) is with TIAA, with 60% in Traditional (taking interest only from it now) and 40% in variable. What are the pros and cons of leaving the variable money with TIAA versus moving it to an IRA. Would love to hear from anyone who has already gone down that path. I plan to leave the Trad money in place and continue taking interest, with the option of converting to lifetime income stream if needed. My husband's pension and a few other income sources are enough for now. We both have Roth IRAs that we have not tapped, and neither of us has started SS yet. We also purchased a single premium fixed indexed annuity a couple of years ago that we have not tapped yet. Had planned on taking that as joint income in 7 years when he reaches 70 until I read about the tax tornado! Maybe we should start it a bit earlier. He may start SS next year when he turns 64. I will plan to wait until 70. Am 61 now.
While I have not "already gone down that path," I will within the next 10 years. While I cannot address some of your questions, I can give you my opinion on the pros and cons of leaving variable money with TIAA. While I have monies at Vanguard, I will keep some money at TIAA for the long run. You are already using one TIAA Traditional. TIAA Traditional is one reason I will keep money with TIAA (I will annuitize a portion of those funds). The other reason is the TIAA Real Estate account (not the T-C REIT mutual fund). I like that "steady eddie" diversifier into real estate! I can purchase far cheaper equity funds at Vanguard, so my equities will remain at Vanguard. I wish you the best!

ritaloveday
Posts: 1
Joined: Thu May 30, 2019 11:06 am

Re: Pros and cons of leaving funds at TIAA

Post by ritaloveday » Thu May 30, 2019 11:10 am

Husband is looking to retire at the end of this year. We are having the same questions! Hope others who have TIAA and CREF will tell of their experiences and decisions.

Tdubs
Posts: 607
Joined: Tue Apr 24, 2018 7:50 pm

Re: Pros and cons of leaving funds at TIAA

Post by Tdubs » Thu May 30, 2019 11:16 am

dh wrote:
Thu May 30, 2019 11:05 am
MBL wrote:
Thu May 30, 2019 10:38 am
Retired two years ago after 34 year career in higher ed. My 403(b) is with TIAA, with 60% in Traditional (taking interest only from it now) and 40% in variable. What are the pros and cons of leaving the variable money with TIAA versus moving it to an IRA. Would love to hear from anyone who has already gone down that path. I plan to leave the Trad money in place and continue taking interest, with the option of converting to lifetime income stream if needed. My husband's pension and a few other income sources are enough for now. We both have Roth IRAs that we have not tapped, and neither of us has started SS yet. We also purchased a single premium fixed indexed annuity a couple of years ago that we have not tapped yet. Had planned on taking that as joint income in 7 years when he reaches 70 until I read about the tax tornado! Maybe we should start it a bit earlier. He may start SS next year when he turns 64. I will plan to wait until 70. Am 61 now.
While I have not "already gone down that path," I will within the next 10 years. While I cannot address some of your questions, I can give you my opinion on the pros and cons of leaving variable money with TIAA. While I have monies at Vanguard, I will keep some money at TIAA for the long run. You are already using one TIAA Traditional. TIAA Traditional is one reason I will keep money with TIAA (I will annuitize a portion of those funds). The other reason is the TIAA Real Estate account (not the T-C REIT mutual fund). I like that "steady eddie" diversifier into real estate! I can purchase far cheaper equity funds at Vanguard, so my equities will remain at Vanguard. I wish you the best!
I've done the same--decided what portion I wanted to leave in traditional and TREA and moved the rest out to my Thrift Savings Plan and Vanguard.

mariezzz
Posts: 691
Joined: Mon Oct 02, 2017 11:02 pm

Re: Pros and cons of leaving funds at TIAA

Post by mariezzz » Thu May 30, 2019 3:26 pm

I'd make the decision simply based on fees. TIAA can offer very low cost Vanguard options (I have VTSAX at .04%) - but it all depends on whether the employer has chosen to make those options available. If you only have options that are higher ERs (.3% or so or higher), I'd move it.

Depending on your state, you may have better protections against creditors if money is left in 403b compared to an IRA.

Topic Author
MBL
Posts: 11
Joined: Tue Sep 18, 2018 3:49 pm

Re: Pros and cons of leaving funds at TIAA

Post by MBL » Mon Jun 03, 2019 6:41 pm

Good point

galectin
Posts: 250
Joined: Thu Jan 27, 2011 1:57 pm

Re: Pros and cons of leaving funds at TIAA

Post by galectin » Mon Jun 03, 2019 7:20 pm

I moved my variable TIAA funds to an existing IRA to simplify my investments, even though I had good low fee options available at TIAA. I would have been comfortable staying with TIAA in a self-directed plan.

As mariezz said, the fees and options in your plan should help inform this decision. There have been previous threads discussing the merits of having your funds at one vs. multiple providers.

I also had about ten percent of my funds in TIAA-Trad that I am withdrawing on the ten year plan.

columbia
Posts: 1653
Joined: Tue Aug 27, 2013 5:30 am

Re: Pros and cons of leaving funds at TIAA

Post by columbia » Mon Jun 03, 2019 7:44 pm

TIAA will likely charge you fees to hold “other” funds. I’d check the details of your plan.

drzzzzz
Posts: 388
Joined: Sat Sep 22, 2012 9:56 pm

Re: Pros and cons of leaving funds at TIAA

Post by drzzzzz » Mon Jun 03, 2019 8:18 pm

I also don't think you can do QCD (qualified charitable distributions from a 403B) so will likely move my funds ( or at least the yearly RMD) at TIAA to an IRA at Vanguard or Fidelity to be able to do QCDs.

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