nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
TIAA-Traditional is s deferred annuity that pays a minimum of 3% and my account is currently accumulating at 4.413%. The trick with TIAA-Traditional is that there are several ways to take income that preserve yours and you heirs access to the principal, although you can buy an annuity if you want.
One option is just to take the interest and if you want to get at the principal you can pay out the entire balance in equal amounts over 10 years. So it's sort of like a 10 year CD paying 4.413%. Also if rates go up so will the interest rate that TIAA-Traditional pays. It looks like a good option for fixed income as long as you don't need fast access to principal.
One option is just to take the interest and if you want to get at the principal you can pay out the entire balance in equal amounts over 10 years. So it's sort of like a 10 year CD paying 4.413%. Also if rates go up so will the interest rate that TIAA-Traditional pays. It looks like a good option for fixed income as long as you don't need fast access to principal.