Firecalc and Tiaa-Cref

[palomalou]

I am required when I retire to annuitize at least half of my TIAA-CREF account, which is about 25% of net worth not including real estate. It will vary according to how the market (i.E., the subsections we have chosen) does. Is that roughly equivalent to a COLA? Or only partially? Or should I put it in as non-COLA? Thanks.

 

[clifp]

If TIAA Cref offers COLA annuities you can certainly make it an a COLA annuity.

I could argue that you simple treat the money as you would regular portfolio with a normal asset allocation. It is a very interesting question since in effect what you are getting is a variable pension, which depends on your investment performance and the interest rates when you retire.

 

[palomalou]

It is a very interesting question since in effect what you are getting is a variable pension,

Precisely! They don't CALL it a COLA.
Thanks for your thoughts.

 

[Gerbil Wheel]

I once participated in a consulting project at TIAA. They were so unbelievably f-ed up it's amazing. My advice: reconcile your statements.