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.
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
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.
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
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 greg@shepardfinancial.com
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.
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?
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.
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.
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
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.
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
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 greg@shepardfinancial.com
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.
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?
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.