|
Seeking Info on TIAA Traditional Withdrawal Options
12-01-2016, 04:12 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,466
|
Seeking Info on TIAA Traditional Withdrawal Options
DH retired a couple of months ago and we are in the process of consolidating his various 401Ks into IRAs at Fido. His decades old TIAA-CREF account consists of CREF stock which will be rolled over and just under $100K in TIAA Traditional.
We had assumed our only option was to deplete this over the course of 10 years. During a phone conversation yesterday, the rep also advised us we could annuitize this for life at a payout rate of 8.43%. Current interest rate paid is 4.2%. He stated the breakeven point is about 12 years (haven't done the math yet). He also stated that if DH dies before 10 years, his beneficiary would receive the balance in the account.
Is anyone familiar with this account...I am assuming there is only one type of TIAA Traditional, but could be wrong. Their website is sorely lacking in information. The rep is sending us info. We have an appointment at the local office, however, the earliest available is at the end of January! TIA for any info.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
12-01-2016, 04:17 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Check the morningstar forum about TIAA-CREF for more info. Those folks live and breathe this thing.
I own 3 different types of TIAA Traditional, so there must be at least 8 different ways to own it and 8 different ways of withdrawals, etc.
It's not going anywhere, so waiting until January for more info should have no consequences.
But one may (?) be able to buy more of the old 4.2%-paying TIAA with your old CREF stock, so I would not rollover the CREF stock without figuring out what one can do in that regard. Or one might want to use the CREF stock to buy TIAA Real Estate account shares.
|
|
|
12-01-2016, 05:27 PM
|
#3
|
Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,466
|
Thank you. We will definitely hold off doing anything with the CREF stock until we meet with them next January. I'll also check out the Morningstar forum.
|
|
|
12-01-2016, 11:28 PM
|
#4
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
I have TIAA-Traditional and it's currently paying 4.8% because most of it was purchased in in the late 1980s. I use it as part of my fixed income and just reinvest the interest.
You have lots of income options with TIAA-Traditional.....
There's the 10 year payout annuity if you want to roll it over and you can make systematic withdrawals, just take the interest or annuitize it. The TIAA annuities are pretty good as SPIAs go, but compare with other annuities if you go that route. Personally with bonds looking like they might be a bit of a roller coaster soon I'd just keep the TIAA-Traditional as is.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
12-02-2016, 09:34 AM
|
#5
|
Dryer sheet wannabe
Join Date: Feb 2008
Posts: 15
|
I also have a small TIAA traditional account from the 1980s. It's currently paying out more than 4.4%. In retirement I just draw out the interest every month. Works for me. My advisor reminded me that no where else can I get such a guaranteed rate of return, and to hold onto it with dear life!
|
|
|
12-02-2016, 02:13 PM
|
#6
|
Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,466
|
I looked at the wrong line...the TIAA is paying 4.835% interest, not 4.2% as I thought! The account is pre 1982. DH always kicks himself for being too conservative in his early years with all his investments. The account started at 50/50 contributions sometime in the mid 70s, ending before '82. It's now slightly more than 75% CREF equities, <25% TIAA. He has to do something with it next year as he turns 70.
|
|
|
12-02-2016, 03:36 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2005
Posts: 10,252
|
Although 4.835% sounds nice right now, we all paid for that by getting less early on.
I've read a study that showed that TIAA traditional has simply done about as well at a total US bond index fund over the years. That's not bad at all, but no miracle has been performed with TIAA traditional.
|
|
|
12-02-2016, 04:23 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
|
Quote:
Originally Posted by LOL!
Although 4.835% sounds nice right now, we all paid for that by getting less early on.
I've read a study that showed that TIAA traditional has simply done about as well at a total US bond index fund over the years. That's not bad at all, but no miracle has been performed with TIAA traditional.
|
This is true, but TIAA-Traditional has a lot less risk. Older accounts (like mine and that of the OP) have a guaranteed minimum annual return of 3% and are currently paying 4.8%. I have always just included it as part of my fixed income portfolio and with the uncertainty around bond funds today i'm glad I have it.
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
|
|
|
12-04-2016, 08:22 PM
|
#9
|
Recycles dryer sheets
Join Date: Nov 2011
Location: Beaver island, MI and St. Augustine, FL
Posts: 90
|
I think there is no fixed income investment as attractive as the TIAA traditional that you hold. If you want to cover some of your basic expenses in retirement with an annuity (a good idea I think) then you probably can't do better than converting your TIAA to an annuity --but I would wait until interest rates go up a bit if you can.
|
|
|
12-05-2016, 05:42 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,427
|
I am currently doing a 10 year payout annuity from TIAA. My payout annuity pays 4%/year. It started in 2011.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|