TIAA Real Estate Movement

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inepteft
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TIAA Real Estate Movement

Post by inepteft » Sat Mar 14, 2020 2:13 pm

Any insight or opinions on holding TIAA Real Estate in the current market environment based on movement in the broader REIT market? I know this was a topic of interest during the Great Recession and we find ourselves again with likely stress on commercial real estate. Of course, moving out of TIAA Real Estate requires a move into something else which is a whole separate issue. Thanks!

Tdubs
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Re: TIAA Real Estate Movement

Post by Tdubs » Sat Mar 14, 2020 2:32 pm

Given the new COVID-19 pressure on already stressed retail properties, I'd think there is little to lose in watching TREA a few more months before buying new shares. It is a slow-moving battleship of a fund whose performance had already flattened before the latest crisis.

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willthrill81
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Re: TIAA Real Estate Movement

Post by willthrill81 » Sat Mar 14, 2020 2:56 pm

You may find this thread on TIAA Real Estate relevant to your question.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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ResearchMed
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Re: TIAA Real Estate Movement

Post by ResearchMed » Sat Mar 14, 2020 5:24 pm

Tdubs wrote:
Sat Mar 14, 2020 2:32 pm
Given the new COVID-19 pressure on already stressed retail properties, I'd think there is little to lose in watching TREA a few more months before buying new shares. It is a slow-moving battleship of a fund whose performance had already flattened before the latest crisis.
willthrill81 wrote:
Sat Mar 14, 2020 2:56 pm
You may find this thread on TIAA Real Estate relevant to your question.
willthrill81's link provides a lot of relatively recent discussion about this, including discussions about what Tdubs mentions.

In the past, and I'm thinking especially to the 2008-2009 crisis, TREA lagged quite some time behind the regular REITs (as in months - hence the "slow-moving battleship").
So people were able to watch how REITs performed, and *then* "get out" of TREA if desired.

Some changes were made to TREA to lessen this effect, but we haven't had a "chance" to see if that made a difference.

Do make note of the restrictions on TREA:
(This may not be current?)
-- One may not purchase more in your account if the amount of TREA is at/above $150,000;
-- One can only sell ONCE per quarter, not matter how much/little, or early/late in the quarter.

When we went through this in 2008, I waited until almost the end of each quarter to sell, lest the financial situation "get even worse" later in the quarter.
We then bought back in later, and also had a single opportunity in our specific 403b to purchase as much as we wanted. (That's now gone.)

In earlier years, we called TREA "the little fund that could", give it's fairly amazing performance. Those days appear over, alas.

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Re: TIAA Real Estate Movement

Post by abuss368 » Sat Mar 14, 2020 5:32 pm

inepteft wrote:
Sat Mar 14, 2020 2:13 pm
Any insight or opinions on holding TIAA Real Estate in the current market environment based on movement in the broader REIT market? I know this was a topic of interest during the Great Recession and we find ourselves again with likely stress on commercial real estate. Of course, moving out of TIAA Real Estate requires a move into something else which is a whole separate issue. Thanks!
There is a lag between TIAA and REITS in terms of valuations. I would own the haystack with a simple one or two portfolios and stay the course.
John C. Bogle: Two Fund Portfolio - Total Stock & Total Bond - “Simplicity is the master key to financial success."

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Re: TIAA Real Estate Movement

Post by willthrill81 » Sat Mar 14, 2020 5:42 pm

ResearchMed wrote:
Sat Mar 14, 2020 5:24 pm
In earlier years, we called TREA "the little fund that could", give it's fairly amazing performance. Those days appear over, alas.
TREA has certainly outperformed TBM over the last several years both in terms of returns and volatility, which TREA basically hasn't had, but I'm not sure if that will continue.

YTD, TREA peaked on March 9th and has been sliding since. Given its history of lagging REITs, this is to be expected. I certainly wouldn't want to own it right now.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: TIAA Real Estate Movement

Post by abuss368 » Sat Mar 14, 2020 5:54 pm

inepteft wrote:
Sat Mar 14, 2020 2:13 pm
Any insight or opinions on holding TIAA Real Estate in the current market environment based on movement in the broader REIT market? I know this was a topic of interest during the Great Recession and we find ourselves again with likely stress on commercial real estate. Of course, moving out of TIAA Real Estate requires a move into something else which is a whole separate issue. Thanks!
I have family that has access to TIAA. When looking at the real estate fund we ultimately decided to pass.

Keep investing simple.
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Re: TIAA Real Estate Movement

Post by jjustice » Sat Mar 14, 2020 7:03 pm

For the 10 years ending 3/12/20, $10K in TREA grew to $23,255 while VNQ, Vanguard's REIT index ETF, grew to $22,823. Looking at the chart shows that the predominant difference in the two is volatility. TREA has a far higher Sharpe ratio.
Add VNQ as a comparison in this Morningstar chart.
https://quotes.morningstar.com/chart/fu ... e=MLE&cur=

John

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inepteft
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Re: TIAA Real Estate Movement

Post by inepteft » Sat Mar 14, 2020 8:50 pm

Thanks to all for the feedback. Given willthrill81's link to the past discussion and current perspective, it does seem like it is still possible to sell before TREA fully reflects the recent (and potentially future) downturn in the real estate market. Still speculation, but might also serve to simplify our portfolio.

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camillus
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Re: TIAA Real Estate Movement

Post by camillus » Sat Mar 14, 2020 8:54 pm

The interesting part of the discussion with TREA is what happens when you start noticing REITS move upwards. That's probably what they're taking about at the TIAA board at morningstar.

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Re: TIAA Real Estate Movement

Post by yohac » Sun Mar 15, 2020 8:43 am

TIAA is on my last nerve. I transferred my 403B to a TIAA IRA a couple years ago. Last year I was able to initiate partial IRA transfers to Vanguard online. Limited to 50K at a shot, but better than nothing, and it worked fine. I had left about 150K to keep in TREA. Was considering doing another transfer this week - but NO, that option is no longer available online. Nor is there a form available to download. I now have to call them (and no doubt listen to a hard sell) to do an IRA transfer of any amount.

They make it so easy to put money in, but man, how they hate giving it up. Of course I could initiate from Vanguard, but they insist on that stupid medallion signature.

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Re: TIAA Real Estate Movement

Post by Call_Me_Op » Sun Mar 15, 2020 8:51 am

Don't know why there is so much negativity regarding TIAA Real Estate. It is a direct unleveraged investment in US real estate. Nothing more, nothing less. If you want to invest in US real estate with low risk and no hassle, this is a way to do it.
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inepteft
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Re: TIAA Real Estate Movement

Post by inepteft » Sun Mar 15, 2020 12:47 pm

Call_Me_Op wrote:
Sun Mar 15, 2020 8:51 am
Don't know why there is so much negativity regarding TIAA Real Estate. It is a direct unleveraged investment in US real estate. Nothing more, nothing less. If you want to invest in US real estate with low risk and no hassle, this is a way to do it.
The original post was not intended to be negative about TIAA Real Estate, it was just wondering whether it was a good time to take advantage of its unique structure to avoid a hit to its value. Thanks for the replies.

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Re: TIAA Real Estate Movement

Post by yohac » Sun Mar 15, 2020 1:04 pm

People often refer to the Green Street index for timing TREA. Moreso than REITs, which flail around. The index dipped just a bit last month. The great thing about TREA is that it won't drop ten percent in a day.

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Re: TIAA Real Estate Movement

Post by Tdubs » Sun Mar 15, 2020 1:28 pm

It isn't negativity, it's uncertainty. There is little to gain in buying now and much you may lose. For some time, TREA has been growing at a steady 5 percent rate. So, you might lose out on 1 or 2 percent return if you wait a few months to invest in it.

But we really don't know what the coronavirus will do to retail property values and rents. So why jump on board a ship that may be sinking? Especially when you only get once chance per quarter to bail out.

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Re: TIAA Real Estate Movement

Post by finite_difference » Mon Mar 16, 2020 4:57 pm

Timely thread.

Assuming this week is a good time to sell, I need to identify where to put the money:

1) Could shift balance of TREA into total stock market, buying not at the bottom but selling high and buying lowish.
2) Could put it into TIAA Traditional, but I think the option we have is illiquid and then can’t be taken out.
3) Could do nothing. EF is adequate and these funds won’t be needed until maybe 5 years at earliest. Is it OK to do nothing or is it stupid to not sell this week?
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

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Re: TIAA Real Estate Movement

Post by livesoft » Mon Mar 16, 2020 5:06 pm

Thanks for the reminder to do some market timing here. I might as well announce that I will sell all my TIAA Real Estate assets within the next 6 months.
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inepteft
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Re: TIAA Real Estate Movement

Post by inepteft » Mon Mar 16, 2020 5:28 pm

finite_difference wrote:
Mon Mar 16, 2020 4:57 pm
Timely thread.

Assuming this week is a good time to sell, I need to identify where to put the money:

1) Could shift balance of TREA into total stock market, buying not at the bottom but selling high and buying lowish.
2) Could put it into TIAA Traditional, but I think the option we have is illiquid and then can’t be taken out.
3) Could do nothing. EF is adequate and these funds won’t be needed until maybe 5 years at earliest. Is it OK to do nothing or is it stupid to not sell this week?
I'm in the same boat, which resulted in the original post. I didn't sell my TREA positions back in 2008/2009. Although everything worked out fine, you do feel like a sucker not selling when you can pretty clearly see the writing on the wall. I might sell TREA and split the difference between a total stock market index and Traditional (I have access to the liquid and illiquid versions in separate accounts). Then again, the losses in total stock market might end up being similar depending on how things go. Good luck!

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Re: TIAA Real Estate Movement

Post by bikechuck » Mon Mar 16, 2020 7:30 pm

I sold my TREA today as I think that it is inevitable that commercial real estate is in for some very tough days, months and perhaps years.

TREA was only 5% of my portfolio and I held it in an IRA. I moved it to TIAA Traditional which is only paying 1% and change in an IRA. I am OK with that because it is liquid and it in conjunction with my wife's SS and interest on some other guaranteed funds with higher yields will enable me to avoid selling any equities for the next four years.

I can actually go for approx 15 years without selling equities if I sell off my guaranteed funds. I would rather not do that though because they are paying a blended average 4.0%.

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Re: TIAA Real Estate Movement

Post by finite_difference » Tue Mar 17, 2020 8:44 am

inepteft wrote:
Mon Mar 16, 2020 5:28 pm
finite_difference wrote:
Mon Mar 16, 2020 4:57 pm
Timely thread.

Assuming this week is a good time to sell, I need to identify where to put the money:

1) Could shift balance of TREA into total stock market, buying not at the bottom but selling high and buying lowish.
2) Could put it into TIAA Traditional, but I think the option we have is illiquid and then can’t be taken out.
3) Could do nothing. EF is adequate and these funds won’t be needed until maybe 5 years at earliest. Is it OK to do nothing or is it stupid to not sell this week?
I'm in the same boat, which resulted in the original post. I didn't sell my TREA positions back in 2008/2009. Although everything worked out fine, you do feel like a sucker not selling when you can pretty clearly see the writing on the wall. I might sell TREA and split the difference between a total stock market index and Traditional (I have access to the liquid and illiquid versions in separate accounts). Then again, the losses in total stock market might end up being similar depending on how things go. Good luck!
I’ll need to check if there’s a decent bond fund.

I agree that stocks may be worse off but if stocks have fallen 50% and TREA has fallen 5%, you get the opportunity to buy stocks low.

Splitting 50/50 between total stock / Traditional makes sense to me since you should be made whole using 50% of the investment, assuming stocks recover back to 100%, while the other 50% is in something safe.
The most precious gift we can offer anyone is our attention. - Thich Nhat Hanh

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Re: TIAA Real Estate Movement

Post by finite_difference » Tue Mar 17, 2020 8:45 am

livesoft wrote:
Mon Mar 16, 2020 5:06 pm
Thanks for the reminder to do some market timing here. I might as well announce that I will sell all my TIAA Real Estate assets within the next 6 months.
Yay, livesoft is back! Didn’t anybody tell you that you aren’t allowed to go on vacation without letting anyone know, lest we all get scared?

On topic: why such a long time window?
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Re: TIAA Real Estate Movement

Post by Flashes1 » Tue Mar 17, 2020 9:25 am

I have approx. 3.5% of our assets in TIAA RE - I have to say I'm very tempted to transfer it to the S&P 500 Index......just not sure I have the guts.

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Re: TIAA Real Estate Movement

Post by Tdubs » Tue Mar 17, 2020 9:39 am

I jumped out on February 28, the last day to get Traditional at 3.5 percent in RA.

In addition to the threat to retail, I think the mass move to teleworking will not be undone. Even partial success will make a lot of companies and government agencies question why they a renting so much space.

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Re: TIAA Real Estate Movement

Post by classicjazzfan » Tue Mar 17, 2020 6:39 pm

My holdings in TREA are spread over four different TIAA contracts. Would the "one trade per quarter" rule prevent me from moving TREA money in each of those four contracts to another fund (e.g., a bond fund or an international fund) held within the same contract? Or would four such transfers count as a single trade if done on the same day? I can't decipher the prospectus. Thank you.

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Re: TIAA Real Estate Movement

Post by desiderium » Tue Mar 17, 2020 9:25 pm

Tdubs wrote:
Tue Mar 17, 2020 9:39 am
I jumped out on February 28, the last day to get Traditional at 3.5 percent in RA.

In addition to the threat to retail, I think the mass move to teleworking will not be undone. Even partial success will make a lot of companies and government agencies question why they a renting so much space.
I agree with the point that in the longer-term occupancy of office space will undergo a re-think of central office vs telework. Short and medium term prospects don't look great either. I also bailed on my TREA

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Re: TIAA Real Estate Movement

Post by inepteft » Wed Mar 18, 2020 9:40 am

classicjazzfan wrote:
Tue Mar 17, 2020 6:39 pm
My holdings in TREA are spread over four different TIAA contracts. Would the "one trade per quarter" rule prevent me from moving TREA money in each of those four contracts to another fund (e.g., a bond fund or an international fund) held within the same contract? Or would four such transfers count as a single trade if done on the same day? I can't decipher the prospectus. Thank you.
I believe the limits are by contract and not overall. I just sold my TREA in two separate contracts yesterday without a problem.

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Re: TIAA Real Estate Movement

Post by alex345 » Wed Mar 18, 2020 11:10 am

I have (had) 18% of assets in TREA but I will be redeeming them in the near future as well.

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Re: TIAA Real Estate Movement

Post by ResearchMed » Wed Mar 18, 2020 11:18 am

For those who are considering selling any TREA, don't forget the "once per quarter" restriction for selling.

That is, IF one sells on or before March 31st (two weeks from yesterday), then one will have another opportunity to sell in the quarter starting in April.
OTOH, if one waits a few days later, and sells some in early April, then one would need to wait for the start of the *next* quarter to sell any additional TREA.

That's always important to keep in mind, of course, but especially with the crazy volatility these days.

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Re: TIAA Real Estate Movement

Post by abuss368 » Wed Mar 18, 2020 11:18 am

livesoft wrote:
Mon Mar 16, 2020 5:06 pm
Thanks for the reminder to do some market timing here. I might as well announce that I will sell all my TIAA Real Estate assets within the next 6 months.
Are you simplifying or moving out of real estate permanently?
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Re: TIAA Real Estate Movement

Post by livesoft » Wed Mar 18, 2020 11:34 am

abuss368 wrote:
Wed Mar 18, 2020 11:18 am
livesoft wrote:
Mon Mar 16, 2020 5:06 pm
Thanks for the reminder to do some market timing here. I might as well announce that I will sell all my TIAA Real Estate assets within the next 6 months.
Are you simplifying or moving out of real estate permanently?
I would move out permanently. I got screwed to the tune of a 20% loss in TIAA Real Estate the last time.

At the moment, I think TREA is about 10% of my net worth.
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Re: TIAA Real Estate Movement

Post by dknightd » Wed Mar 18, 2020 11:45 am

I want to keep about 10% of my assets in TREA. Because of changes in other parts of my investments, I'll probably sell a little TREA today, and move it into stocks. I like that TIAA real estate (TREA) moves a little slower than other assets. I'll probably always keep about 10% in it. It is more liquid than tiaa traditional (at least in most of my accounts), typically returns more than "cash".
I'm not going to time my investments in and out (that is, I'm not going to try to predict the future) but I will rebalance in and out as required to keep my AA about where I want it. Right now it is about time to take a little out of TREA.
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Re: TIAA Real Estate Movement

Post by abuss368 » Wed Mar 18, 2020 11:54 am

livesoft wrote:
Wed Mar 18, 2020 11:34 am
abuss368 wrote:
Wed Mar 18, 2020 11:18 am
livesoft wrote:
Mon Mar 16, 2020 5:06 pm
Thanks for the reminder to do some market timing here. I might as well announce that I will sell all my TIAA Real Estate assets within the next 6 months.
Are you simplifying or moving out of real estate permanently?
I would move out permanently. I got screwed to the tune of a 20% loss in TIAA Real Estate the last time.

At the moment, I think TREA is about 10% of my net worth.
Do you invest in REITs or real estate. Do you think real estate is needed in a portfolio?
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Re: TIAA Real Estate Movement

Post by livesoft » Wed Mar 18, 2020 12:19 pm

abuss368 wrote:
Wed Mar 18, 2020 11:54 am
Do you invest in REITs or real estate. Do you think real estate is needed in a portfolio?
I do not own any rental properties and never have. I used to buy VNQ (a REIT index), but have not owned any VNQ shares in years. I use a small number of stock index funds such as VTI that have REITs in them.

I do not believe one needs real estate as a separate asset class in a portfolio.
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Re: TIAA Real Estate Movement

Post by ResearchMed » Wed Mar 18, 2020 12:26 pm

livesoft wrote:
Wed Mar 18, 2020 12:19 pm
abuss368 wrote:
Wed Mar 18, 2020 11:54 am
Do you invest in REITs or real estate. Do you think real estate is needed in a portfolio?
I do not own any rental properties and never have. I used to buy VNQ (a REIT index), but have not owned any VNQ shares in years. I use a small number of stock index funds such as VTI that have REITs in them.

I do not believe one needs real estate as a separate asset class in a portfolio.
You had more TREA and didn't sell (or didn't sell in time?) last time, and now, "TREA is about 10% of [your] net worth", but "you do not believe one needs real estate as a separate asset class in a portfolio"?

:confused

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Re: TIAA Real Estate Movement

Post by livesoft » Wed Mar 18, 2020 12:27 pm

TREA is now 10% of my net worth because the rest of my net worth is going down faster. That is, my TREA has not really grown much in dollar value.

I would not mind selling my TREA and buying equities in the near future.
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Re: TIAA Real Estate Movement

Post by dodecahedron » Wed Mar 18, 2020 12:29 pm

livesoft wrote:
Wed Mar 18, 2020 12:19 pm
abuss368 wrote:
Wed Mar 18, 2020 11:54 am
Do you invest in REITs or real estate. Do you think real estate is needed in a portfolio?
I do not own any rental properties and never have. I used to buy VNQ (a REIT index), but have not owned any VNQ shares in years. I use a small number of stock index funds such as VTI that have REITs in them.

I do not believe one needs real estate as a separate asset class in a portfolio.
I decided to get out of my (small, token) remaining position in TREA on 3/10/20 and will not be going back in. TREA is not very diversified and has a fairly high concentration of very expensive properties in big cities on East and West coast that are particularly hard hit by Coronavirus. It had a pretty decent Sharpe ratio for quite a long time, but that seems unlikely to persist in the current environment.

Will stick to simpler, more diversified, more transparent (less opaque) investments going forward.

My real estate holdings going forward will be confined to whatever their share within broad index funds like VTSAX own. (And of course my owner-occupied home, but I regard that as primarily consumption rather than an investment.)

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Re: TIAA Real Estate Movement

Post by nolapepper » Wed Mar 18, 2020 3:48 pm

Thank you very much for the clear instructions! I plan to sell those from my old university. I have been thinking about simplifying my portfolio to two or three funds and maybe get rid off real estate.

I am thinking to sell half now for stocks and maybe another half in April, depending on the situation then.
ResearchMed wrote:
Wed Mar 18, 2020 11:18 am
For those who are considering selling any TREA, don't forget the "once per quarter" restriction for selling.

That is, IF one sells on or before March 31st (two weeks from yesterday), then one will have another opportunity to sell in the quarter starting in April.
OTOH, if one waits a few days later, and sells some in early April, then one would need to wait for the start of the *next* quarter to sell any additional TREA.

That's always important to keep in mind, of course, but especially with the crazy volatility these days.

RM

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Re: TIAA Real Estate Movement

Post by willthrill81 » Wed Mar 18, 2020 4:13 pm

As expected, TREA is lagging REITs and continuing to fall, though not nearly as much as REITs are.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: TIAA Real Estate Movement

Post by ResearchMed » Wed Mar 18, 2020 4:45 pm

willthrill81 wrote:
Wed Mar 18, 2020 4:13 pm
As expected, TREA is lagging REITs and continuing to fall, though not nearly as much as REITs are.
The regular equity markets are down considerably, as is, for example, VNQ (Vanguards real estate ETF).

TREA is down, from the recent high, something like one percent.

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Re: TIAA Real Estate Movement

Post by Tdubs » Thu Mar 19, 2020 5:04 am

TIAA has added this note to its TREA prospectus. Not a promising sign.

https://www.sec.gov/Archives/edgar/data ... 231820.htm

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Re: TIAA Real Estate Movement

Post by bgf » Thu Mar 19, 2020 6:34 am

our target date fund holds a little. looks like this is another quandary owning a target date fund saves me from dealing with.
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Re: TIAA Real Estate Movement

Post by greenspam » Thu Mar 19, 2020 7:59 pm

Time to bail.
I called it before when REITS crashed (and TIAA RE lagged); calling it again now.
I dont remember if it was on Morningstar forum, or here, but i do recall an argument with Larry Swederoe (sp?) about ability to ‘time’ TIAA RE based on it lagging REIT funds.

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nolapepper
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Joined: Wed Mar 25, 2015 3:06 pm

Re: TIAA Real Estate Movement

Post by nolapepper » Thu Mar 19, 2020 11:06 pm

edited:

I plan to sell all my TREA tomorrow. 30% exchange to s&p500, 70% exchange to TIAA traditional( which will be used to buy more stocks if it drops again). Does this sound like a good exit plan?

I was thinking to exchange 30% first then wait until April to do a second batch, but then I thought why not just exchange to TIAA Traditional first, so I don"t have to worry about the quarterly limit? Then i can exchange to stocks little by little if the market continue to drop.

I hope I do not miss anything here. Does TIAA traditional have any restrictions? Can I exchange to stocks later with TIAA traditional? Or, Should i park in money market instead? This is in the account of the university that I no longer works. The traditional is in the GSRA Account.

Thanks for any guidance.
Last edited by nolapepper on Fri Mar 20, 2020 9:49 am, edited 1 time in total.

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ResearchMed
Posts: 10261
Joined: Fri Dec 26, 2008 11:25 pm

Re: TIAA Real Estate Movement

Post by ResearchMed » Fri Mar 20, 2020 7:47 am

nolapepper wrote:
Thu Mar 19, 2020 11:06 pm
I plan to get all out tomorrow. 30% goes to s&p500, 70% TIAA traditional( which will be used to buy more stocks if it drops again). Does this sound like a good exit plan?

I was thinking to exchange 30% first then wait until April to do a second batch, but then I thought why not just exchange to TIAA Traditional first, so I don"t have to worry about the quarterly limit? Then i can exchange to stocks little by little if the market continue to drop.

I hope I do not miss anything here. Does TIAA traditional have any restrictions? Should i park in money market instead? This is in the account of the university that I no longer works. The traditional is in the GSRA Account.

Thanks for any guidance.
Do you mean TREA, the TIAA Real Estate Account, instead of their Traditional (Annuity)?

RM
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nolapepper
Posts: 193
Joined: Wed Mar 25, 2015 3:06 pm

Re: TIAA Real Estate Movement

Post by nolapepper » Fri Mar 20, 2020 9:47 am

Yes. I want to replace my TREA with stocks and something else (TIAA tradtional or money market).
ResearchMed wrote:
Fri Mar 20, 2020 7:47 am
nolapepper wrote:
Thu Mar 19, 2020 11:06 pm
I plan to get all out tomorrow. 30% goes to s&p500, 70% TIAA traditional( which will be used to buy more stocks if it drops again). Does this sound like a good exit plan?

I was thinking to exchange 30% first then wait until April to do a second batch, but then I thought why not just exchange to TIAA Traditional first, so I don"t have to worry about the quarterly limit? Then i can exchange to stocks little by little if the market continue to drop.

I hope I do not miss anything here. Does TIAA traditional have any restrictions? Should i park in money market instead? This is in the account of the university that I no longer works. The traditional is in the GSRA Account.

Thanks for any guidance.
Do you mean TREA, the TIAA Real Estate Account, instead of their Traditional (Annuity)?

RM

livesoft
Posts: 72031
Joined: Thu Mar 01, 2007 8:00 pm

Re: TIAA Real Estate Movement

Post by livesoft » Fri Mar 20, 2020 9:55 am

nolapepper wrote:
Thu Mar 19, 2020 11:06 pm
...
I hope I do not miss anything here. Does TIAA traditional have any restrictions?
I want to write that there are many different types of "TIAA Traditional Annuity" that depend on what is available in your plan(s). I have 3 different plans from a former employer and in two of the plans there are severe restrictions for TIAA Traditional Annuity and in one of the plans there are no restrictions. This is all generally quite confusing.

So from this side of the Internet, I cannot tell you what is available in your plan(s). You may even need to talk to a TIAA rep on the phone about all this as their web site may not be clear enough as well.
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ofckrupke
Posts: 746
Joined: Mon Jan 10, 2011 2:26 pm

Re: TIAA Real Estate Movement

Post by ofckrupke » Fri Mar 20, 2020 10:45 am

nolapepper wrote:
Thu Mar 19, 2020 11:06 pm
I hope I do not miss anything here. Does TIAA traditional have any restrictions?
[...]
The traditional is in the GSRA Account.
Being in GSRA means the most liquid flavor of Traditional. Can transfer out, in entirety if participant chooses, as easily/quickly as in.

nolapepper
Posts: 193
Joined: Wed Mar 25, 2015 3:06 pm

Re: TIAA Real Estate Movement

Post by nolapepper » Fri Mar 20, 2020 3:42 pm

Thank you!

Ready to execute!
ofckrupke wrote:
Fri Mar 20, 2020 10:45 am
nolapepper wrote:
Thu Mar 19, 2020 11:06 pm
I hope I do not miss anything here. Does TIAA traditional have any restrictions?
[...]
The traditional is in the GSRA Account.
Being in GSRA means the most liquid flavor of Traditional. Can transfer out, in entirety if participant chooses, as easily/quickly as in.

GreendaleCC
Posts: 37
Joined: Sun Dec 22, 2019 3:24 am

Re: TIAA Real Estate Movement

Post by GreendaleCC » Sun Mar 22, 2020 5:20 pm

I've only been in TREA since 2014 (in a Roth IRA). With current equity losses, my TREA position now exceeds 13% of my overall portfolio. I decided to exchange out to the 1.25% TIAA Traditional tomorrow and rollover the account to Fidelity to build up my (non-RE) equity positions.

livesoft
Posts: 72031
Joined: Thu Mar 01, 2007 8:00 pm

Re: TIAA Real Estate Movement

Post by livesoft » Tue Apr 28, 2020 7:57 am

It has been more than month, so time for an update.

In that time TREA has gone up slightly, then dropped slightly, so it is within half a percent of where it was on March 20th and January 1st. TREA has held its value since the beginning of the year, so it didn't lose any money in 2020 like equities. Since 3/20, equities have gone up more than 20% and even bonds have gone up 6%. Thus, rebalancing out of TREA has been a tremendous boost to return.
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