SteveL
Recycles dryer sheets
- Joined
- Aug 1, 2005
- Messages
- 380
One of my sons is on the faculty of a large Texas university. He recently received a letter from the university advising him that the university had persuaded TIAA-CREF to move all the university participants funds from the "Retirement" class of TIAA-CREF funds to their "Premier" class of funds. The principal benefit would be that the expense ratios of Premier funds are lower than those of Retirement funds.
Since I was never employed in the public sector, I never had a chance to use TIAA-CREF, and thus don't know much about the firm or their investment options. My impression was that TIAA-CREF was a good low-cost provider.
However, in looking at information on the internet, it looks like Premier expense ratios for Index funds are higher than similar Vanguard funds.
Wouldn't participants in this university's retirement plans be better served with Vanguard funds as an option? Does TIAA-CREF have some in with public sector employers that keeps Vanguard out?
Since I was never employed in the public sector, I never had a chance to use TIAA-CREF, and thus don't know much about the firm or their investment options. My impression was that TIAA-CREF was a good low-cost provider.
However, in looking at information on the internet, it looks like Premier expense ratios for Index funds are higher than similar Vanguard funds.
Wouldn't participants in this university's retirement plans be better served with Vanguard funds as an option? Does TIAA-CREF have some in with public sector employers that keeps Vanguard out?