TIAA Traditional Rules
TIAA Traditional can often be THE exception to the "rule" must of us seem to follow when it comes to annuities. Make sure you know what you're giving up before you have this client exit this product. Of course, it would have to fit into the overall allocation that is appropriate. TIAA-CREF has a division that assists advisors with these products and decisions. You can call them at 1-888-842-0318. Be sure to ask them about the composite rate that this account has. Traditional applies the rates at the time of contribution as "vintages" that continue through the life of the account. Sometimes the composite of these vintages can be extremely attractive. Hope that helps.
Unless the funds are in a Group Supplemental Retirement Annuity (GSRA) or Supplemental Retirement Annuity (SRA), the client is limited to the 10%/yr. withdrawal rate. The 5- and 10-yr. return trailing 1/31/07 for the Retirement Annuity (RA) and Group Retirement Annuity (GRA) has been 5.9% and 6.6% . Those are "Bill Gross" numbers, but PIMCO does not guarantee a 3% positive annual return. Unless the client must get his/her hands on the money, they could do a lot worse with their fixed income allocation. You can set up what they call a Transfer Payout Annuity and TIAA-CREF will automatically remove the 10% annually on each future anniversary.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.