No. of Recommendations: 1
Bob (and Hawkwin, and others),

Since I am retiring in June 2014, I had two meetings recently with TIAA-CREF to help get ready. In addition to my TIAA-CREF, I have some Schwab accounts that in aggregate are roughly equal in size to my TIAA-CREF, plus a fairly large (for me, at least) credit union account (in excess of $100K).

The T-C advisor was proposing a way for me to move funds out of those other places and into T-C for management. I also intend to begin annual withdrawals from TIAA and more them into CREF funds, since I have way more in the TIAA side than I want to keep there. (I know: I shoulda changed the allocation a long time ago; but I didn't. And it actually turned out quite well.)

So, their proposition is that I move $750K into their management, for which they would charge me 0.55% per annum. The recommended mix is:

86% munis, divided among five muni funds: Wells Fargo SMAVX, Bernstein SNDPX, Thornburg THMIX, T. Rowe Price PRSMX, and Oppenheimer OPITX.

5% DFA US large-cap value (DFSIX)
3% emerging market PIMCO bond
3% Aberdeen equity long short fund (GGUIX)
3% cash

All of these funds have fees, of course, in addition to the management fee.

To me, this looks nutty. If I wanted to accomplish their objective, I could do this with some ETFs and/or Vanguard plain-vanilla funds all by myself, and save a lot of money.

Equally important, munis are about the last place I would put 86% of my money these days. I already have some muni exposure, which I cut in half in May ... and glad I did. The muni market is facing way too much turmoil for my comfort, which is partly why I am sitting so heavily in cash.

Comments, critiques, suggestions VERY welcome.
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