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Participant ○

Re: TREA - Is the time to sell coming?

I'm not "gone" from TREA. My last transaction only cut 1/4 of my TREA holding. I can't cut any more til April 1. TREA limits the number of transfers from the account to one per calendar quarter. My former employer -- sponsor of my TIAA account -- doesn't allow me to add to TREA.

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Participant ○○

Re: TREA - Is the time to sell coming?

I moved 40% of our portfolio investment in TREA to TRAD (GSRA) this morning.  At this point, a 3% return was a powerful motivator.

Brian

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Explorer ○○○

Re: TREA - Is the time to sell coming?


@BrianG wrote:

I moved 40% of our portfolio investment in TREA to TRAD (GSRA) this morning.  At this point, a 3% return was a powerful motivator.

Brian


Lucky RA Guys. IRA types get less than 1/2 that!!! I cab go to another brokerage and rival TIAA IRA with their MMF!!!!    :-(((

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Follower ○○

Re: TREA - Is the time to sell coming?

We are restricted to one transfer out of TREA per quarter, but this is per contract, correct? My TREA is in 8 separate contracts.

Thanks you.

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Participant ○

Re: TREA - Is the time to sell coming?

@contact2 To be more precise, the limit is 1 transfer out of TREA per CALENDAR quarter. So you could make one on, say, March 20 and another on April 1. (You can transfer into TREA at any time.) I also think you are correct that this applies to each plan/contract separately.

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Valued Contributor

Re: TREA - Is the time to sell coming?

VNQ is now at a 52 week low.

I am NOT rubbing salt into anyone's wound.

I AM observing that some of us old timers remember the lead/lag case between REIT vs. TREA performance. We shall see in the fullness of time.

Yogi may be right that the new supplement is laying the groundwork for severely downward revaluation.  He has his 3 % rule. I will wait and see.

Interesting times for sure.

Bob 

P.S. $424.24 is TREA's 52 week low.

P.P.S. If you are emotionally up to it, check out the new highs and lows figures for the NYSE.

As of market close, the S & P is down 15% this week. I said 15%.

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Explorer ○○○

Re: TREA - Is the time to sell coming?


@GLI2019 wrote:

VNQ is now at a 52 week low.


Bob, it's worse than that.  VNQ is down for the past 5 years.  $10K had become $9,220 at yesterday's close.  It will be lower after today.

John

 

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Valued Contributor

Re: TREA - Is the time to sell coming?

3/20/20  435.84 -0.13%.

-1.41% from peak.

YBB
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Highlighted
Explorer ○○○

Re: TREA - Is the time to sell coming?

TREA is down 1.04% YTD.

John

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Follower ○○○

Re: TREA - Is the time to sell coming?

And down about 1.4% from its high.

Yogi, is your 3% rule more than an arbitrary thumb rule? I have thumb rules, too, but my decision to sell TREA wasn't based on a preselected price movement. It was an assessment that this isn't just a general downturn. It is more like the 10th plague of Egypt in singling out its victims, many of whom rent space in TREA held retail property.

Office space will likely be a slow aftershock as leases expire and organizations move to smaller space. I can't think of another event that has so quickly and radically forced so many workers to change work locations. Some are going to like it. My agency is in full telework. Today, I was permitted to go back to my office to get materials. Saw not a soul except guards. We were already reducing office size and cutting leased space. All of a sudden, my co-workers are going to be good at using all the teleconferencing and shared work tools available. They will press to work more from home, and so will Congress. 

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Explorer ○

Re: TREA - Is the time to sell coming?

 


@Zonkers wrote:

...."Office space will likely be a slow aftershock as leases expire and organizations move to smaller space. I can't think of another event that has so quickly and radically forced so many workers to change work locations. Some are going to like it. My agency is in full telework."

Elected to move TREA over to Traditional on Wednesday.  Had read some of the earlier posts on this thread (thanks to all) and decided that TREA upside was not that great compared to the risk for retail and office space suffering in the current climate.   Working folks I've spoken with are talking about how well teleworking is functioning and are thinking this may change how their companies work, even after Corona is over.

I did check with TIAA ahead of time; both my account and spouses contracts would allow  a future move back to TREA from Traditional.  The SRA funds in Traditional could move anytime in any amount.  The TREA that moved into an RA Traditional would be subject to their 9 year policy.  Also, we will never have as much as we did prior because we were well over the $150K cap. 

We decided it was worth it to us to protect the downside risk.  Our goal as retirees is more capital protection.  So, definitely not advising this for anyone else.  Just reporting what we did.


 

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Participant ○○

Re: TREA - Is the time to sell coming?

dhmva wrote:   "...Also, we will never have as much as we did prior because we were well over the $150K cap..."

Systematic transfer allows you to exceed the 150K limit with no upper limit.  If you ever want to invest over 150K in TREA, I suggest that you look into it.

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Explorer ○

Re: TREA - Is the time to sell coming?

Thanks, Learner.  I am guessing we may never choose to return to our prior amounts, but good to know there is a mechanism.

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Participant ○○○

Re: TREA - Is the time to sell coming?


@Learner wrote:

dhmva wrote:   "...Also, we will never have as much as we did prior because we were well over the $150K cap..."

Systematic transfer allows you to exceed the 150K limit with no upper limit.  If you ever want to invest over 150K in TREA, I suggest that you look into it.


That was also my understanding when I had TREA. However, I never needed to go beyond that limit because of other considerations.

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Valued Contributor

Re: TREA - Is the time to sell coming?

@Zonkers , my 3% down and out for T-REA is personal/arbitrary and I have mentioned it for years. It has kept me in T-REA for 12+ years. 

Technically, it is also related to 200-dMA. T-REA is a slow mover, so its 200-dMA is typically only 1.4-1.5% below the price. Many would allow 1-3% piercing of 200-dMA, and I picked a middle value, so all that came to nice round 3% down. I have substantial equity investments, and as you can guess, those can be/are down a lot. T-REA money would have been in Traditional if not in T-REA and 3% down is all that I can allow for it. I am watching quarter end closely - if it is close to trigger, I may do half and half in Q1 and Q2. Or, if it magically turns around or stabilizes, I can stick with it for another few years. That is the rest of the story, as late Paul Harvey would often say.

YBB
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Participant ○○

Re: TREA - Is the time to sell coming?

I understand yogi's approach regarding TREA.  What is not clear to me is for how long he would stay with TREA if it remains flattish for a year or two or three or longer.  There is a theoretical possibility, just a possibility that it could linger in the 0% to -2.9% change range for years.  

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Participant ○

Re: TREA - Is the time to sell coming?

"There is a theoretical possibility, just a possibility that it could linger in the 0% to -2.9% change range for years."

And if it did that -- and if you allow for a look-back starting point -- it could well beat the larger equities market. And it could be worth retaining.

I've been reasonably satisfied with some holdings that reliably aren't net negative performers, even if they're only modest positive ones. Case in point: money market account. For most years I've looked to TREA to do better than just maintaining its value, whether inflation-adjusted or nominal. But I know from history that it can collapse. And I'm paying attention to whether I should sell it in the near future. However, I can't sell it before April 1 because of a trading restriction that I mentioned earlier on this thread.

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Valued Contributor

Re: TREA - Is the time to sell coming?


@GLI2019 wrote:

VNQ is now at a 52 week low.

I am NOT rubbing salt into anyone's wound.

I AM observing that some of us old timers remember the lead/lag case between REIT vs. TREA performance. We shall see in the fullness of time.

Yogi may be right that the new supplement is laying the groundwork for severely downward revaluation.  He has his 3 % rule. I will wait and see.

Interesting times for sure.

Bob 

P.S. $424.24 is TREA's 52 week low.

P.P.S. If you are emotionally up to it, check out the new highs and lows figures for the NYSE.

As of market close, the S & P is down 15% this week. I said 15%.


So? VNQ Dividend yield is 5.32% which is sufficient income for me. I don’t need to sell shares. When VNQ hits bottom I will buy more.
why are you obsessed with the comparison of price between VNQ which is an ETF which owns 185 publicly traded REITs  which are marked to market each trading day and TREA which is a varaible annuity that owns RE properties which are not valued daily? VNQ price is subject to volatility when markets contract because investors sell off all equities without regard to the fair value of the equities assets which creates a buying opportunity for intelligent investors. TREA assets are valued based upon appraisals which can be higher than fair market value of the properties when they are sold in a recession.

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Participant ○○

Re: TREA - Is the time to sell coming?


@Juris2 wrote:

"There is a theoretical possibility, just a possibility that it could linger in the 0% to -2.9% change range for years."

And if it did that -- and if you allow for a look-back starting point -- it could well beat the larger equities market. And it could be worth retaining.

I've been reasonably satisfied with some holdings that reliably aren't net negative performers, even if they're only modest positive ones. Case in point: money market account. For most years I've looked to TREA to do better than just maintaining its value, whether inflation-adjusted or nominal. But I know from history that it can collapse. And I'm paying attention to whether I should sell it in the near future. However, I can't sell it before April 1 because of a trading restriction that I mentioned earlier on this thread.


Correct, but the equities market is not the only game in town, so to speak.  I was thinking of TIAA Trad, especially if returning to TREA in the future is not a problem.

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Participant ○○

Re: TREA - Is the time to sell coming?

intruder wrote: 

"...VNQ Dividend yield is 5.32% which is sufficient income for me. I don’t need to sell shares. When VNQ hits bottom I will buy more."

If it goes up, it's great.  If it goes down, it's great.  What a great investment!

"why are you obsessed with the comparison of price between VNQ which is an ETF which owns 185 publicly traded REITs which are marked to market each trading day and TREA which is a varaible annuity that owns RE properties which are not valued daily?"

Many of us did not join this group just last week.  (Better late than never.)

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