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.
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.