Avoid This HUGE Mistake with TIAA Traditional

Greg Shepard - S&A Financial Services, Inc.
#tiaatraditional #tiaaa #tiaa
Greg Shepard, your trusted expert at S&A Financial Services, unveils a crucial warning in this essential video for anyone navigating higher education retirement plans, particularly involving TIAA accounts.
In this impactful presentation, Greg addresses a common mistake observed in retirement planning, focusing on TIAA Traditional. He stresses the need to grasp the intricacies before making any account adjustments.
Key Insights:
Real-Life Scenario: Greg illustrates a costly error made by an informed individual who transferred funds into TIAA Traditional, aiming to capitalize on a high rate. However, this move resulted in unexpected illiquidity.
Liquidity Concerns: The video underscores the liquidity challenge within TIAA Traditional, particularly with significant investments. Greg emphasizes understanding these aspects fully.
Options After Mistake: Greg outlines post-error options, including a Transfer Payout Annuity (TPA) or accepting a 2.5% penalty for enhanced liquidity, within the context of a Group Retirement Annuity (GRA) exceeding $5,000.
PSA for Higher Ed Professionals: Greg's PSA urges thorough research before engaging with TIAA Traditional, advocating contacting TIAA or himself for clarity on liquidity implications.
Avoid pitfalls in your retirement plan. Watch this video, heed the warning, and make informed choices about your TIAA accounts. Greg Shepard wishes you a secure retirement journey. Don't miss out - watch now!
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Disclosure S&A Financial Services, Inc. is a registered investment advisor. Content presented is for informational purposes only and should not be considered as investment advice or as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Always consult with your tax advisor or attorney regarding your specific situation.

[@daveh893]

Great advice. When I retired I had much of my account in TIAA Traditional and forgot the restrictions on withdrawals. I am currently able to take about 10% per year, but have had to be on a strict budget under those rules.

[@user-jm4mk2pb2b]

When you make a trade into the illiquid Traditional, there are very blatant messages telling you about the restrictions. So anyone who just ignores this is pretty clueless

[@timothybuchman6944]

It would be helpful to know the age and intended retirement age for the person reported on. One reason a GRA might have a 6.75% "new money" rate IS the fact that withdrawals are restricted. Fully-liquid IRAs at TIAA might have had new money rates around 3.25% at the same time! You can't have it both ways. It's also risky to compare volatile NAV bond mutual funds with guaranteed-not-to-decline values in TIAA Traditional. Retirees who need money from illiquid TIAA may have interest-only payout (IPRO) options, or proportional RMD withdrawal options (after 72 or 75) that bypass liquidity restrictions.

[@HB-yq8gy]

My wife works for a non-profit hospital she has two 401k and one 403b with TIAA. We self-managed I have a steady pension we are both 60 y/o. We might consider a portion to annuitize in our seventies. She doesn't have GRA.

[@OpenDGuitar]

The illiquid aspect of the traditional annuity kind of blindsided me a few years ago. And now with retirement on the horizon, I’m at a loss as to how to take payments…monthly? Annually over 10 years? Frustrating

[@TIAAsimplified]

Hi OpenDGuitar, yes...can be, and is, frustrating. I've seen a lot of folks in your same situation. Depending on the contract typed there may be other options. Feel free to email me at [e-mail]

[@baybay7898]

I currently have about 30% of my 403 b in the TIAA traditional account and will retire in 5 years. Since we don't pay into SS, neither myself nor my wife will get SS income in retirement. We probably will annuitize the TIAA traditional portion of my portfolio to a "pension" upon retirement. What do you think?

[@TIAAsimplified]

Hi baybay, too many unknown variables at play to give you concrete answer, but if you're looking for that "safe" paycheck at retirement, I think you're on the right track. Remember, you can annuitize the CREF portion if you'd like upon retirement as well.