TIAA Traditional Interest Rates- Whoops, I'm not getting that

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Fremdon Ferndock
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TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by Fremdon Ferndock »

I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.
"Risk is what’s left over when you think you’ve thought of everything." ~ Morgan Housel
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ResearchMed
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by ResearchMed »

Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.

I take it at least one of these is a liquid Trad Annuity?

If so, and it's earning 3%, there are some of us here who have posted about removing the money from the liquid Trad Ann, waiting the 120+ days, and then putting it back in the liquid Trad Ann. (Less than 120 days, and it gets the same old rate back again, so don't mis-count...)

But keep in mind that the vintage rates can change, and vintages can get combined, etc.
But for now, yes, there is "better than 3%", or so it seems at this time.

RM
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Fremdon Ferndock
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by Fremdon Ferndock »

ResearchMed wrote: Thu Sep 22, 2022 1:13 pm
Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.

I take it at least one of these is a liquid Trad Annuity?

If so, and it's earning 3%, there are some of us here who have posted about removing the money from the liquid Trad Ann, waiting the 120+ days, and then putting it back in the liquid Trad Ann. (Less than 120 days, and it gets the same old rate back again, so don't mis-count...)

But keep in mind that the vintage rates can change, and vintages can get combined, etc.
But for now, yes, there is "better than 3%", or so it seems at this time.

RM
Yes, my Trad is in a Supplemental Retirement Annuity which I guess is "liquid" since I can withdraw at will. You are saying that it might be possible to roll out for 120+ days and roll back in to get a possibly higher rate (new vintage?). I just rolled some out into a rollover IRA, assuming that this would not close the door to rolling back into TIAA later if I chose to do so.
"Risk is what’s left over when you think you’ve thought of everything." ~ Morgan Housel
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ResearchMed
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by ResearchMed »

Fremdon Ferndock wrote: Thu Sep 22, 2022 1:18 pm Yes, my Trad is in a Supplemental Retirement Annuity which I guess is "liquid" since I can withdraw at will. You are saying that it might be possible to roll out for 120+ days and roll back in to get a possibly higher rate (new vintage?). I just rolled some out into a rollover IRA, assuming that this would not close the door to rolling back into TIAA later if I chose to do so.

I can't say for sure about what happens when you remove money out of TIAA entirely. Some plans may allow "outside IRA money" to be transferred in, but do all?

What we are doing is to move the money out of Trad Ann, but kept the money IN the same TIAA plan account.
(We didn't even move it into a TIRA at TIAA; it stayed in the same account, but in a different choice of "investment".)

If you can move that money back into TIAA to the same plan account, then it should (??) work the same way.

RM
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crefwatch
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by crefwatch »

Fremdom, some of these discussions may be of interest to you:

Should I "churn" my TIAA Traditional?
viewtopic.php?f=10&t=318376
viewtopic.php?p=5523782#p5523782
viewtopic.php?f=1&t=329005
viewtopic.php?f=1&t=342065
viewtopic.php?t=382118&start=50

Some of the threads are long, so I'll just point out in a simplistic way that you are not supposed to be getting "market rates". TIAA Traditional is not a money market fund. While it is not a fractional ownership product (like a mutual fund, I mean), it's designed to reflect longer-term interest rates at the time your money was invested.

Although you'll have to dig for them, these references contain a LOT of one-year snapshots of TIAA Traditional interest rate structures, or "vintages."
JayB
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by JayB »

Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.
If you're willing to give up some liquidity for a higher-yielding current vintage, you can shift some funds from the liquid version (e.g., GSRA) to the less liquid and higher-yielding one (e.g. GRA). I have done this before and received the rate for new contributions on these transferred funds in the receiving account.
JayB
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by JayB »

ResearchMed wrote: Thu Sep 22, 2022 1:26 pm Some plans may allow "outside IRA money" to be transferred in, but do all?
Years ago, I transferred 403(b) and 457(b) assets from outside custodians to TIAA Traditional and received the new contribution rate. My sense is that TIAA will allow these kinds of transfers because they are from workplace retirement accounts. At the time, TIAA did not allow the shifting of IRA assets into TIAA Traditional.
student
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by student »

JayB wrote: Thu Sep 22, 2022 4:19 pm
Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.
If you're willing to give up some liquidity for a higher-yielding current vintage, you can shift some funds from the liquid version (e.g., GSRA) to the less liquid and higher-yielding one (e.g. GRA). I have done this before and received the rate for new contributions on these transferred funds in the receiving account.
I assume you are doing this in 2 steps, assuming you have room, correct? 1) Move money from TIAA Traditional to, say, Stock in GSRA. 2) Move money from Stock to TIAA Traditional in GRA.
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ResearchMed
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by ResearchMed »

JayB wrote: Thu Sep 22, 2022 4:33 pm
ResearchMed wrote: Thu Sep 22, 2022 1:26 pm Some plans may allow "outside IRA money" to be transferred in, but do all?
Years ago, I transferred 403(b) and 457(b) assets from outside custodians to TIAA Traditional and received the new contribution rate. My sense is that TIAA will allow these kinds of transfers because they are from workplace retirement accounts. At the time, TIAA did not allow the shifting of IRA assets into TIAA Traditional.

It may be plan-specific, per Employer arrangement with TIAA?

We've been told that our plan *does* allow a "transfer in" from an TIRA, but we haven't done that. And for this little procedure for the >120 day "out of Trad Ann to get higher rate when back in", we just kept the money at TIAA, in a different investment for the duration. Less paperwork!

RM
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JayB
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by JayB »

student wrote: Thu Sep 22, 2022 4:38 pm
JayB wrote: Thu Sep 22, 2022 4:19 pm
Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.
If you're willing to give up some liquidity for a higher-yielding current vintage, you can shift some funds from the liquid version (e.g., GSRA) to the less liquid and higher-yielding one (e.g. GRA). I have done this before and received the rate for new contributions on these transferred funds in the receiving account.
I assume you are doing this in 2 steps, assuming you have room, correct? 1) Move money from TIAA Traditional to, say, Stock in GSRA. 2) Move money from Stock to TIAA Traditional in GRA.
I have shifted funds from a GSRA to a GRA in the past in one step with a simple phone call to TIAA.
student
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by student »

JayB wrote: Thu Sep 22, 2022 4:48 pm
student wrote: Thu Sep 22, 2022 4:38 pm
JayB wrote: Thu Sep 22, 2022 4:19 pm
Fremdon Ferndock wrote: Thu Sep 22, 2022 1:01 pm I saw that TIAA Traditional is paying 5.50% for the RA and 4.75% for the SRA. I've kept a pile of my retirement assets in Traditional over the years, paying a minimum yield of 3% while other comparative investments were paying a goose-egg. Happy me. So, I was even happier to learn about these new interest rates.

But wait. Looking deeper I saw that my Traditional interest rate was currently 3.33%. Whoops. Far lower than the current rates being offered. But that's only for new money apparently. I guess the vintages cut both ways. Those rates are much lower than current rates. I can earn that much or more right now in T-Bills, so I guess it might finally be time to do a rollover. Just thought I'd post a heads-up to others out there who might be hanging onto some of those older Traditional vintages. Better check your rates.
If you're willing to give up some liquidity for a higher-yielding current vintage, you can shift some funds from the liquid version (e.g., GSRA) to the less liquid and higher-yielding one (e.g. GRA). I have done this before and received the rate for new contributions on these transferred funds in the receiving account.
I assume you are doing this in 2 steps, assuming you have room, correct? 1) Move money from TIAA Traditional to, say, Stock in GSRA. 2) Move money from Stock to TIAA Traditional in GRA.
I have shifted funds from a GSRA to a GRA in the past in one step with a simple phone call to TIAA.
Thanks. One thing to keep in mind is there may be different rules governing GSRA and GRA. At my place, the employer does not allow borrowing from GRA and does not allow distributions before retirement in GRA, as the employer contributed the money, but no such rules in GSRA. Of course, every place is different.
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Fremdon Ferndock
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Re: TIAA Traditional Interest Rates- Whoops, I'm not getting that

Post by Fremdon Ferndock »

My TIAA plan is a GSRA I believe. I recall some years ago that I rolled over some IRA money from Vanguard into the GSRA, at least I think I did. All my funds have been in Traditional, although some were in TREA at one time. I think I'll give it a go with a small sum from my TIRA to see if I can roll into the GSRA Traditional. I suppose I'll get the old rate, since I just rolled money out to the TIRA from the GSRA but I can find out if I can roll it back in so that after the 120 days could be an option.
"Risk is what’s left over when you think you’ve thought of everything." ~ Morgan Housel
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