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TIAA Annuity any experience?
09-18-2018, 05:28 AM
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#1
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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TIAA Annuity any experience?
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!
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09-18-2018, 10:52 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jan 2017
Location: Hog Mountian
Posts: 2,077
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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.
__________________
Never let yesterday use up too much of today.
W. Rogers
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09-18-2018, 11:12 AM
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#3
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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Thanks Badger...
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09-18-2018, 01:22 PM
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#4
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Recycles dryer sheets
Join Date: Aug 2005
Posts: 328
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I suggest a look at this forum, which is specifically about TIAA:
TIAA Funds
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09-18-2018, 03:44 PM
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#5
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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Didn't know about these, thanks!!
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09-18-2018, 05:47 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,211
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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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56...target 65/35/0 AA TBD
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09-18-2018, 06:02 PM
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#7
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
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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.
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09-18-2018, 06:26 PM
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#8
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Portland
Posts: 1,415
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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/y...tiaa-403b.html
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09-19-2018, 05:38 AM
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#9
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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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.
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09-23-2018, 07:45 AM
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#10
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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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!
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09-23-2018, 08:54 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,310
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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.
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09-23-2018, 09:11 AM
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#12
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Recycles dryer sheets
Join Date: Mar 2014
Location: A State of Mind
Posts: 83
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 Quote:
Originally Posted by 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.
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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
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