TIAA Annuity any experience?

[Lstansbury]

I'm considering adding another annuity to my fixed income stream to cover needs in retirement. A Roth IRA I have at TIAA offers an annuity that claims a 6% or so payout and no fees. From the literature I received, the 6% is based on return of principal plus interest. I don't have one of those legacy accounts, it was opened in 2010, I believe.

I would still have 250K or so in 401Ks in Vanguard. This is just the final part of that fixed income stool I'm trying to cover.

Anyone here take a TIAA annuity and notice things in the process that I might need to stay aware of? Thank you for any information, appreciate the help!

 

[Red Badger]

Apologies. No help here. I have observed annuities are not wildly popular here (FWIW, I'm no fan either; that could change based on age and/or interest rates).

Is the contract the size of a post card or is it dozens of pages? If the latter, buyer beware.

Good luck in your decision.

 

[Lstansbury]

Thanks Badger...

 

[Robert the Red]

I suggest a look at this forum, which is specifically about TIAA:
TIAA Funds

 

[Lstansbury]

Didn't know about these, thanks!!

 

[pb4uski]

All you are doing is buying a SPIA from TIAA that will be within the Roth.

How old are you? According to immediateannuities.com a SPIA for a 65 yo male from NY would pay 6.7% payout rate.

You might want to look at immediateannuities.com and Vanguard to see if the 6% is competitive before pulling the trigger.

 

[Lstansbury]

Thanks PB... I am 60. I did look at Vanguard, since they have so mich of my corporate 401k. Unfortunately, it seemed to me that they shift you out to all the usual players, the same as immediateannuities.com. I thought TIAA might be more reliable than that list of vendors, considering it's nonprofit status.

 

[Scrapr]

story from NYT last year on TIAA pushing clients fears to sell proprietary funds. ie: high cost funds. A bit at the bottom of the article on immediate annuities

https://www.nytimes.com/2017/11/13/your-money/tiaa-403b.html

 

[Lstansbury]

Had no idea about TIAA... read this article and another one linked to it. !! Jeez. Thank you!

I had noticed that the fees on fund choices were higher than Vanguard, which surprised me. As an individual IRA holder, now I understand why. And now I need to call them today and ask them if I can even withdraw a lump sum as an option instead of an annuity, or if I am forced into a 10-year payoff. When I've done other investigation about the TIAA annuity, I noticed that others remarked on how impossible it is to completely understand it the TIAA Traditional accounts. And these stories verified this issue. Criminey.

 

[Lstansbury]

Fwiw, after reviewing the references from forum members, I stopped my Roth IRA contributions to TIAA and opened a FIDO Roth to take all future contributions. May move the whole TIAA account there instead. Am working through more analysis on that. So thank you to everyone!

 

[Tadpole]

I had about $155,000 at TIAA-Cref (old name) from a job I held for 3 years in the 80s. TIAA money could only be withdrawn over 10 years. It was a small amount of money so I just transferred it all to a 10 year payout annuity that earns 4% on the balance each year and deferred SS to age 70. It has gone smoothly and ends in two more years. There is currently about $35,000 left in the account. I have received a little over $152,000 so far.


Everything has gone smoothly with the TIAA product. I don't know about people's experience with other annuity products.

 

[Lstansbury]

I had about $155,000 at TIAA-Cref (old name) from a job I held for 3 years in the 80s. TIAA money could only be withdrawn over 10 years. It was a small amount of money so I just transferred it all to a 10 year payout annuity that earns 4% on the balance each year and deferred SS to age 70. It has gone smoothly and ends in two more years. There is currently about $35,000 left in the account. I have received a little over $152,000 so far.


Everything has gone smoothly with the TIAA product. I don't know about people's experience with other annuity products.

Yes, that's my next conversation with them. Am I under of the 10 year pay out rule? Regardless, Glad to hear that your withdrawal went smoothly Tadpole