The following was on an Internet website (not TIAA-CREF)-TIAA-CREF disclosed that it had shortchanged roughly 30,000 investors in the retirement share class of TIAA-CREF Institutional International Equity (TRERX). In a filing with the SEC, the firm said it wrongly allocated income and capital gains between share classes of the fund on May 26, 2006, leaving retirement share class holders with lower returns than they would have had otherwise. TIAA-CREF says it will compensate investors who lost more than $10 by this November. The firm has not provided a total dollar amount for the error.
I'm getting more and more disgusted with TIAA-CREF.I took out all my mutual funds from them when they changed the fee structure -- against the will of the voting majority, I might add -- and made them among the most expensive funds to own. That was over $300,000 they lost by that move.I still have my Money Market account with them, but will close that out by the end of this year.My retirement account is still with them, but only because I have no control over it. They better get their act together soon... as their reputation is going down the tubes and more and more investors will flee like I did.
I'm getting more and more disgusted with TIAA-CREF.I took out all my mutual funds from them when they changed the fee structure -- against the will of the voting majority, I might add -- and made them among the most expensive funds to own. That was over $300,000 they lost by that move.I still have my Money Market account with them, but will close that out by the end of this year.My retirement account is still with them, but only because I have no control over it. They better get their act together soon... as their reputation is going down the tubes and more and more investors will flee like I did.There is life on this board (and, here, I thought it was Franco, still dead).As far as I can see, TIAA-Cref offers nothing, except TIAA—Traditional, not available for less at Vanguard, and Vanguard has lots more fund options. More importantly, Vanguard has a brokerage service that has free auction bids on Treasuries, brokered CDs, etc.I have never had any interest in TIAA- Cref other than retirement plan. I do intend on sticking with TIAA-Traditional in the regular retirement account after retirement. But all supplemental money is going out into a Traditional IRA (probably spread across a couple of credit unions for CDs and Vanguard for TIPS auctions and Corporates and maybe some remnants of stock funds, though most stock money will be in taxable account).I'm not convinced I can beat TIAA-Traditional in the regular retirement account with a conservative CD/bond ladder. But it should be pretty easy to do better than TIAA-Traditiona in the supplemental account.
Loki-At my employer, I have the option of TIAA or Fidelity. I have been keeping both my regular and supplemental accounts at TIAA, but it sounds like you would recommend moving the supplemental money out to Fidelity. (20+ years to retirement)The only reason I haven't done that is the hassle of having yet another account. I suppose that 35 or so basis points is enough to make it worth my while, and I should just bite the bullet. I even have the forms sitting around somewhere...Thanks for motivating me.-KenF
Hi (other) Ken.I think you need to check very carefully what Fidelity has available, and what the costs are, for yoou 403 (b) plan. It may be different, and more expensive, than the Fidelity expense ratios and options for taxable and IRA accounts. I know the expense ratios for variable annuities at Vanguard (e.g., for a Total Stock Market Index Fund equivalent) are comparable to TIAA-Cref's, i.e., about 25 basis points more than more a taxable account or IRA (.44%, Cref's is .43%). And, even in the Supplemental, TIAA-Traditional is a good option to have available, if you can't get access to CDs or free Treasury auctions.Traditional IRAs seem to be a much better deal than employer sponsored plans, even the better employer sponsored plans, which TIAA-Cref is. Of course, that assumes you aren't stupid and use the greater flexibility to day trade or something.What I'm looking at is not changing employer sponsored plan providers. I'm looking at getting out of the plan and into a Traditional IRA, come retirement, whatever that means (tentatively July 2014). That will allow me to get CDs and TIPS or Treasuries at auction, as well as to do slice and dice/rebalancing with what remains of stock fund assets in tax deferred accounts (probably not much). I think beating TIAA-Traditional (or bond funds) in the Supplemental account by 50 basis points, with no added risk, will be a breeze—quite likely 100 basis points. And since this will be the bulk of my retirement holdings, that's a big deal.If Fidelity really does have the options you want, and if the expenses are the same as for their individual accounts, I'd certainly think it's worth filling out a few forms. But check and be sure.
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