TIAA Cref and 401k

[theiacowtipper]

Before we jump into this with both feet I wanted the honest unbiased opinion of the millionaire investors of HROT. My wife just moved employment from Mercy Iowa City to the University of Iowa with that turnover. Prior to that, before Mercy IC, she was with Mercy One in Des Moines. As a result, she has two different 401k accounts. One through Fidelity, one through Vanguard. Total value is just less than 100k. She meets with the advisor for TIAA this week. Is there an advantage to rolling both of those 401k accounts into TIAA? Is it worth the time?

The returns on both the accounts are pretty good. 15-20% last year. Closer to 15%. I have absolutely no idea what it is invested in. No clue. Also, any info anyone has on TIAA would be appreciated.

 

[StormHawk42]

You probably want to find out what both are invested in. TIAA uses a lot of annuities so if one has an annuity buried in it I wouldn’t want to commingle it with the other.

If neither has an annuity, I would roll both into the new one. Really no reason to keep them in different spots. If you or wife doesn’t know what it’s invested in, she’s likely in a target fund or index funds so really no cost savings between either.

Only other thing I would mention is if you do roll both into the new one, make sure the proceeds actually get invested and not just sit in cash once it moves.

Edit: just realized they’re moving to TIAA not the other way around. Overall point remains the same though.

 

[markfromj]

As always, a pic of wife would help us help you.

 

[noleclone2]

It really all depends on how they are invested, if you want to compare apples to apples. I am sure the new one offers similar mutual funds you could look at matching up to. Might want to see what sort of fees are applied to each 401k plan also.

When I jumped ship to my current place 7 years ago, I decided to dump prior plans into this one (Charles Schwab) vs juggling 4 different accounts. I was mid 40s and felt this was likely last stop so just made everything easy to track and grow. I am glad I did now in my early 50s and closer to that light at the end of tunnel. It’s mainly psychological though since you get to see all good in one pot that throws out a bigger total number (and total number of dollars made) vs looking at it spread in different 401k accounts.

 

[theiacowtipper]

Is there typically a fee to roll something into another fund?

 

[StormHawk42]

Is there typically a fee to roll something into another fund?

Shouldn’t be. They’ll usually liquidate the whole thing and then send a check to the new custodian.

 

[onlyTheObvious]

I rolled one over several years ago. My current employer had more investment options and the website was easy to move things around so I rolled.

Another issue is when you get really old or die the less places you have money laying around the easier it likely will be for everybody.

Do I think it’s a huge deal either way? No

 

[chonk]

Before we jump into this with both feet I wanted the honest unbiased opinion of the millionaire investors of HROT. My wife just moved employment from Mercy Iowa City to the University of Iowa with that turnover. Prior to that, before Mercy IC, she was with Mercy One in Des Moines. As a result, she has two different 401k accounts. One through Fidelity, one through Vanguard. Total value is just less than 100k. She meets with the advisor for TIAA this week. Is there an advantage to rolling both of those 401k accounts into TIAA? Is it worth the time?

The returns on both the accounts are pretty good. 15-20% last year. Closer to 15%. I have absolutely no idea what it is invested in. No clue. Also, any info anyone has on TIAA would be appreciated.

TIAA has a guaranteed investment option that people end up in, and don’t realize the only way out of it is a 10 year payout option, so avoid that unless you are ok with those features. I would move it out of employer plans and into an IRA whenever you can…main reason is to have full control of the funds. When you are in an employer account, you are subject to their decisions, investment options and the provisions they decide to have on the plan.

 

[BustingNarratives]

I love Fidelity and their investment options. I hear Vanguard is quite good also based in what my son has. I have to believe they both have better options than TIAA but you should still check out their investment options and use Morningstar as a resource to compare historical gains and current star ratings for the various fund options.

 

[Obviously Oblivious]

TIAA/CREF has a diverse portfolio of managed funds, just about anything you can think of and annuities as well. Depending on your risk preferences you have a lot of options to choose from.

 

[DogBoyRy]

It really all depends on how they are invested, if you want to compare apples to apples. I am sure the new one offers similar mutual funds you could look at matching up to. Might want to see what sort of fees are applied to each 401k plan also.

When I jumped ship to my current place 7 years ago, I decided to dump prior plans into this one (Charles Schwab) vs juggling 4 different accounts. I was mid 40s and felt this was likely last stop so just made everything easy to track and grow. I am glad I did now in my early 50s and closer to that light at the end of tunnel. It’s mainly psychological though since you get to see all good in one pot that throws out a bigger total number (and total number of dollars made) vs looking at it spread in different 401k accounts.

Pretty much the same here.
Rolled two ira’s plus later an inheritance ira into schwab.
Really like the ease of schwab both online and the app.

 

[Jimmy McGill]

Is IPERS not an option?

 

[theiacowtipper]

Is IPERS not an option?

To be frank it seems like it won’t pay off well. She only has 7 years to retirement. The IPERS pension for her at that point wouldn’t amount to a whole lot. Since she has the 401k already,she went with TIAA.

In addition, there was some uncertainly with mine. I have IPERS and she would never come close to matching it on Her own. If I die first, I’m nit sure if she could draw both IPERS.

I ain’t going to lie, IPERS is a cheat code for retirement.

 

[Urohawk]

Vanguard usually has super low expense ratios meaning the money they charge you to run the fund is much cheaper. To give you an example, SP500 through vanguard is a 0.03% expense ratio versus TIAACREF is 0.18%. Difference of losing 3 cents versus 18 cents for every 100 dollar invested. It's not a huge loss but begins to add up.

Also check what funds you can purchase. Some of the old versus the new ones may have more or less investment options.

 

[HawkMachine]

No way I’d put my money with TIAA.

Limited investment options. Others have mentioned annuities. Anyone that suggests an annuity has ZERO clue about investing. Don’t listen to a word they say.

Stick with the big boys, Fidelity, Schwab, etc. Low fees and offer every investment out there.

 

[MitchLL]

No way I’d put my money with TIAA.

Limited investment options. Others have mentioned annuities. Anyone that suggests an annuity has ZERO clue about investing. Don’t listen to a word they say.

Stick with the big boys, Fidelity, Schwab, etc. Low fees and offer every investment out there.

Agree!

I have an annuity and the damn expenses amount to nearly 1.5%.
One of my biggest investment mistakes.

BTW...I love using Vanguard for my "play money" investing.

 

[Finance85]

In my experience, 401K plans can be similar in the funds they offer, but not always. I've found that 401K plans at Fidelity can be more restricted in their offerings. Obviously Fidelity and Vanguard will offer similar major index funds. It's really easy to compare. I have found that Fidelity makes it really hard to move your money compared to Vanguard, and charges more. Also, a number of 401(k) plan have started charging monthly maintenance fees.

I'd say the initial consideration is the vesting rules. If fully vested, I'd move an old Fidelity 401(k) to a Vanguard rollover IRA in a NY minute. It would be hard to beat some of the Vanguard funds - VWUAX, VIGAX, VMGAX, VITAX.

 

[Rifler]

Investment options don't usually vary drastically,.. Look at the fees.

 

[prlyles]

Depending on your tax bracket, you may be better off rolling them over into a Roth IRA at Schwab.

 

[IAFB2021Champs]

To be frank it seems like it won’t pay off well. She only has 7 years to retirement. The IPERS pension for her at that point wouldn’t amount to a whole lot. Since she has the 401k already,she went with TIAA.

In addition, there was some uncertainly with mine. I have IPERS and she would never come close to matching it on Her own. If I die first, I’m nit sure if she could draw both IPERS.

I ain’t going to lie, IPERS is a cheat code for retirement.

Hmm. I feel like everyone I know has chosen TIAA over IPERS. I’m curious how you would consider IPERS so much better?

 

[hawkiniowacity]

Lot of random opinions for not knowing the details here. Is the TIAA plan one of their annuity plans or open architecture? What's the M&E if it's an annuity, or DAC if open arch? If open arch, what's the fund lineup look like? Heavily TIAA or using Vanguard, Fidelity, etc?

If an annuity, I wouldn't roll funds to it. Those tend to be more expensive with fund choices primarily consisting of TIAA funds. If it's open arch then it would typically be lower cost however the fund choices would be the deciding factor for me.

 

[SoDakHawk]

TIAA has a guaranteed investment option that people end up in, and don’t realize the only way out of it is a 10 year payout option, so avoid that unless you are ok with those features. I would move it out of employer plans and into an IRA whenever you can…main reason is to have full control of the funds. When you are in an employer account, you are subject to their decisions, investment options and the provisions they decide to have on the plan.

This. Roll both those 401ks into a Rollover IRA. More control.

 

[ICWestfan]

Before we jump into this with both feet I wanted the honest unbiased opinion of the millionaire investors of HROT. My wife just moved employment from Mercy Iowa City to the University of Iowa with that turnover. Prior to that, before Mercy IC, she was with Mercy One in Des Moines. As a result, she has two different 401k accounts. One through Fidelity, one through Vanguard. Total value is just less than 100k. She meets with the advisor for TIAA this week. Is there an advantage to rolling both of those 401k accounts into TIAA? Is it worth the time?

The returns on both the accounts are pretty good. 15-20% last year. Closer to 15%. I have absolutely no idea what it is invested in. No clue. Also, any info anyone has on TIAA would be appreciated.

I would just google TIAA retirement plans. Most if not all the questions you have will be answered.

Good to hear she is getting her Mercy IC retirement funds. I had heard that this was not going to be funded by UIHC.

 

[joelbc1]

Before we jump into this with both feet I wanted the honest unbiased opinion of the millionaire investors of HROT. My wife just moved employment from Mercy Iowa City to the University of Iowa with that turnover. Prior to that, before Mercy IC, she was with Mercy One in Des Moines. As a result, she has two different 401k accounts. One through Fidelity, one through Vanguard. Total value is just less than 100k. She meets with the advisor for TIAA this week. Is there an advantage to rolling both of those 401k accounts into TIAA? Is it worth the time?

The returns on both the accounts are pretty good. 15-20% last year. Closer to 15%. I have absolutely no idea what it is invested in. No clue. Also, any info anyone has on TIAA would be appreciated.

Now might be a great time to take her two funds, talk not a Financial Planner and move them to his control…..and have your bride continue her 401K thru her current employer……Methinks you’d wanna be thinking along these lines anyway and get your “retirement plans”organized that way.

 

[theiacowtipper]

Now might be a great time to take her two funds, talk not a Financial Planner and move them to his control…..and have your bride continue her 401K thru her current employer……Methinks you’d wanna be thinking along these lines anyway and get your “retirement plans”organized that way.

So TIAA is not a choice. It’s mandatory. I guess a choice between that and IPERS but TIAA is better for us. The choice is whether to move the other retirements into that and consolidate. I don’t think we will

 

[joelbc1]

So TIAA is not a choice. It’s mandatory. I guess a choice between that and IPERS but TIAA is better for us. The choice is whether to move the other retirements into that and consolidate. I don’t think we will

Personally, I did very well with TIAA CREF… but then Clinton was POTUS and America was never more vibrant…

 

[HawkMachine]

The choice is whether to move the other retirements into that and consolidate.

9/10 times I tell my clients to not roll over an old 401k into their new 401k.

Roll the money over into an IRA. Way more flexibility and way more investment options.

You can do it yourself or find a good investment guy. Investment guy, NOT an insurance guy. Most charge an annual fee of 1% on the assets managed. Which means, if you do good, they do good.

Good luck, any questions let me know.

 

[theiacowtipper]

9/10 times I tell my clients to not roll over an old 401k into their new 401k.

Roll the money over into an IRA. Way more flexibility and way more investment options.

You can do it yourself or find a good investment guy. Investment guy, NOT an insurance guy. Most charge an annual fee of 1% on the assets managed. Which means, if you do good, they do good.

Good luck, any questions let me know.

I understand investment options. Could you expand on flexibility?

 

[HawkMachine]

I understand investment options. Could you expand on flexibility?

There are basic rules when it comes to 401k/403b plans that everyone needs to follow.

However, your company can also have their own added rules you need to follow.

So no additional rules to follow if you roll the money into an IRA.

There's also more flexibility when it comes to taxes in an IRA.

The money is taxed exactly the same when you pull it out but you can control the withholding in an IRA.

You take a distribution out of a 401k, there's a mandatory 20% withholding for Federal. You take a distribution out of an IRA, you can control whatever withholding you want, if anything.



Additional note for all Iowa folk: If you don't know, Iowa isn't taxing retirement accounts anymore so that's pretty nice. So IRA's, pensions, etc.