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Hello,

My wife belongs to TIAA-CREF, and the only index fund
that I saw among our choices was the CREF Equity Index
Account. They said they try to manage to fund to be
similar to the Russell 3000 Index, which indexes the
stocks of 3,000 of the largest US companies on the NYSE. (Yes, that's the Russell "3000", not "2000".)

Does that sound like a good choice to put most of our money? At this time, I have 85% going into this, and the rest going into a global fund. Alas, they do not have the Vanguard 500, nor any means to invest in stocks.

Thanks,
Joe Grant
St. Louis, MO
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Hey, Joe.

Check out this piece Morningstar did on investing via TIAA-CREF:

http://text.morningstar.net/cgi-bin/GetNews.exe?NewsStory=Ms/ThisOldPortfolio/TeachingTeacher/teachingteacher1.html

The Russell 3000 is a broader market index, and not necessarily "worse" than an S&P500 index. It will give you more diversification, so it'll look "bad" in years the S&P500 soars, but it'll look a lot better if the S&P flounders (relative to smaller cap stocks). I'm a fan of indexing (rather than individual funds) and the allocation youve described (85% R3000 index, 15% international) sounds pretty reasonable to me. Of course, remember that free advice is worth every cent you paid for it ;)

cheers,

Sandeep
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TIAA-CREF also offers a growth account as well as the standard Cref stock account and the one you mentioned - the equity account. The growth account has outperformed both the Cref and the Index account. You can get long-term performance figures from http://www.tiaa-cref.org


rickisme

PS I have been contributing to Tiaa-Cref since 1983 and have been very pleased with the overall performance.
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Greetings, Joe Grant, and welcome.

<<My wife belongs to TIAA-CREF, and the only index fund
that I saw among our choices was the CREF Equity Index
Account. They said they try to manage to fund to be
similar to the Russell 3000 Index, which indexes the
stocks of 3,000 of the largest US companies on the NYSE. (Yes, that's the Russell "3000", not "2000".)

Does that sound like a good choice to put most of our money? At this time, I have 85% going into this, and the rest going into a global fund. Alas, they do not have the Vanguard 500, nor any means to invest in stocks.>>

Deep and Rickisme both gave you a good reply, so I'll add nothing save to say I think overall TIAA-CREF does a right fine job for its investors.

Regards…..Pixy
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