Originally Posted by ats5g
I think JohnEyles just annuitized some money in a CREF account. Perhaps he can shed some more light on this.
Rocketdog, I did, and it's pretty bizarre. For one thing, I asked
them to annuitize 50% of my CREF, not realizing the non-CREF
accounts (the instituitonal mutual funds) would not be included.
So I didn't really annutiize as much as I though; evidently, you
have to transfer those funds to CREF (of TIAA) accounts in order
to annuitize them. But I didn't really care, I was just signing up
for a minimal monthly annuity to qualify for state retirees' free
health insurance (since I'm semi-retired and consulting).
But things REALLY get bizarre once you've annuitized, trying to
understand the "annuity units" and how to go about rebalancing.
You can NOT just specify a percentage amount in each account
and have them rebalance for you. No. You have to ask them
to move a certain number of these arcane annuity units from
one account to the other. And you have to do it by phone !
My advice is to balance everything the way you want it, with
the right percentages into each CREF account, BEFORE you
My impression also was that TIAA isn't a very good deal, graded
payout or not, and I am doing the 10-year process of moving all
my TIAA Traditional funds into CREF (the part of CREF I haven't
yet annuitized). Of course, I'll keep some reasoanble allocation
between the equity and bond accounts at CREF.
Hope this helps. There should be a support group somewhere
for TIAA-CREF people. And they ought to at least get their
website somewhere into the late 1990s, so you can, for example,
move money among the annuitized accounts online. Did I
mention you have to call on the phone to sell after-tax mutual