TIAA Vs. Schwab w/focus on backend support

[FargoI]

I have invested with TIAA-CREF for approximately 20 years and I am very pleased with my Financial Advisor. Until recently I was blissfully in the contribute and build mode; post retirement I have shifted into the consolidation mode favoring two organizations TIAA and Schwab.

Two recent unrelated (material) experiences are tugging at my loyalty to TIAA; human errors by backend support staff; my overall confidence in TIAA has fallen precipitously.

Schwab has always appeared to be better positioned than TIAA to provide consistently excellent customer service; offering competitive/expanded investment options and providing 24*7*365 customer support. The bifurcated model of investing is in deference to watching some of America's biggest and once upon a time, reputable, businesses spiral out of control.

My options include: forgiving and forgetting TIAA's (material) errors, continuing to keep a sharp eye on everything TIAA does on my behalf, consolidating all positions with Schwab. My reluctance to consolidate with any one company is rooted in past failures of seemingly superior financial institutions. The counter point to consolidation is simplicity in light of aging. I recognize that my ability and desire to chaperone professionals will likely dwindle with time; worse yet, if I pass before my DW, the DW has no interest and little ability, to assume the auditor role.

I am interested in objective input based upon personal experience with TIAA and/or Schwab. Accuracy of transactions, routine customer service, escalated customer services for material matters, competitive investment options for guaranteed funds as some specific examples of what I would benefit from hearing. Yes, I am aware there is another option available to me...migrate away from TIAA and start a new relationship with a 'highly' regarded (until proven otherwise) competitor.

Thanks in advance.
FargoI.

 

[jazz4cash]

Forgive but DO NOT forget. Give them 2 or 3 strikes.

 

[target2019]

I have no experience with TIAA, just hearing about the funds on this board and others.

While you are accumulating not much service is required. I had two 401(k) accounts, Vanguard for Roth and Sep-IRA, and Schwab brokerage. Spouse has similar.

Schwab became the consolidation point for the 401's. There's office, online, email support. It has all been very responsive for me. After reading auto-biography of founder, I could understand why the experience was better than Vanguard. Either a company builds a better interface and improves support continuously, or....

If everything investable can fit one institution, it is a decisive moment for you. I think TIAA can provide so-so support and therefore pass on more earnings. Schwab probably has similar investments.

BTW, Fidelity investors seem to do fine as well.

 

[MRG]

Some of these companies do their own support and enhance their core systems, others outsource to other providers. When SHTF that provider has to determine what issues to fix first. TIAA's issues may not be the first in queue for the provider.

I like financial services companies that have their own problem solvers on staff with access to the code that supports their customers. There's only three places in this country that fit that bill for me. I'd take my money to one of the other places.

ETA: I'd never have all eggs in the same place. Problems get resolved but sometimes it requires time.

 

[Phroig]

I have not had any issues at TIAA, and the reps I've spoken with over the years have all been professional, courteous, and knowledgeable. That said, customer service is very good at Schwab/Fidelity, and the investment options and costs are far superior.
Is access to Traditional and TIAA RE important for you? To simplify things for your spouse, are you likely to annuitize any of your money in the future? If so, you could keep some of your money at TIAA, and transfer the rest. Schwab frequently offers a bonus for transfers from other institutions.

 

[CyclingInvestor]

I have been an active investor with Schwab since 1979. Never any back-office problems. The half dozen or so times I have had more complex issues they passed me up to someone who could deal with them (partnership UBTI in my IRA, 72t rules, etc).

 

[Bamaman]

My wife's TIAA-CREF accounts were her university hospital's version of a 401K. TIAA has many of the university and school teacher's accounts in the country, and it's a very large operation. But I've never been impressed with their returns.

We left the funds there only because they were our most conservative investments and very stable--and I wanted to keep them separate as she accrued them before we were married.

My MegaCorp dealt with Fidelity on 401K's, and needless to say they're a supermarket of anything to do with investments. I was able to take a little more risk with Fidelity since the more conservative investments were sitting at TIAA.

 

[FargoI]

Feedback

Thank you to all for your insights, sage advice, sharing of experiences.

Like: concept of one more strike. Downside with tiaa is moving money from unrestricted retirement account to chase substantially higher interest rates comes with a minimal five year withdrawal schema. And after careful consideration we are not interested in TIAA or others single, guaranteed, etc. annuities- DW said it best, why hand over a large chunk of money to tiaa when we've managed our money so well for so long. Besides, SSA is our path towards an annuitiy.

Like- Schwab has (essentially) one of the strongest in-house support models. While we've been clients for >25 years...we've never had to test out their escalation processes...light bulb moment, ...that actually speaks volumes.

Neutral to negative starting new relationship(s), although the alrur of sign on bonus may be enticing. We've played that game too many times with credit cards and checking accounts and at this stage in life ( mid 60s), we can see its actually exhausting chasing a few hundred dollars. Thousands would be worthwhile, perhaps.

Negative: thinking about Mutual Benefit Life and how we almost lost all of DWs retirement money back in the ~ 80s. We were fortunate to have recovery principal only over a five year recovery period. Consequently all eggs in one basket, as convenient as it would be for RMD, brings too much risk for our appetites.

Thanks again everyone. And thanks in advance to those contributing additional thoughts.

 

[FargoI]

Update. The reversal of the unauthorized withdrawal initiated by TIAA has finally been completed. Unfortunately corrective actions to roll over the funds into an alternate internal account appear to have fallen off the preverbal rail; another escalation ļticket has been opened at my request.

Meanwhile, no one from leadership has reached out to explain the root cause of the unauthorized withdrawal. And no one from corporate compliance has responded to my request to be contacted directly.

My long time TIAA Financial Advisor, basically said he has done all he can to assist with my situation; I find this position to be insightful, alarming, and frankly, disheartening.

I'm left to infer that absent the ability to closely monitor transactions at TIAA, as one ages, one will not be able to depend upon anyone there to proactively or reactively assist with problems. The prospect of this being reality is troubling.