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Frequent Contributor

Updated TIAA Traditional FAQ's

I don't recall that this update (information clearly runs through 2018) has been previously posted.

Here's  a link to the pdf--

https://www.tiaa.org/public/pdf/TT_FAQ.pdf

Several things caught my attention:

1. It's the first time I have seen TIAA explicitly acknowledge its participation in state guaranty associations (p, 2).  In a conversation with a TIAA principal several years ago, I was told TIAA could not use the information in published materials.  Clearly, this is no longer the case.

2.  The "vintage" nomenclature has been abandoned.  TIAA now uses "interest buckets" (see section 10, p. 4, especially).

3. In boldface, TIAA states the price of liquidity with respect to TIAA Traditional in its many versions (see p. 5).  The price is at least 0.50-0.75--e.g., higher crediting rates for an RA; lower rates for an IRA.

Finally (on p. 7) there appear some interesting  factoids:

"As of year-end 2018, 8271 people age 95 and older, 988 people age 100 and older, and 40 people age 105 and older were still receiving lifetime income from TIAA Traditional." :smileylol:

Bob

19 Replies
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Participant ○

Re: Updated TIAA Traditional FAQ's

Thanks for that link, Bob.

I wanna be one of those 40 people 35 years from now!

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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

Yep, Wizard.

I wanna go on a l O N G lifetime income run. :smileylol:

Bob 

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Participant ○○

Re: Updated TIAA Traditional FAQ's

GO for it!

I'm taking a different path to producing lifetime income, but you're on one that's just as good if not better. My "plan" takes into account found money that arrived within the last 5 years.

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Participant ○

Re: Updated TIAA Traditional FAQ's

Buckets??  Vintages made me feel like a sophisticated oenophile.  Now I'm just a member of a bucket brigade?  TIAA never thinks of our feelings!

John

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Frequent Contributor

Re: Updated TIAA Traditional FAQ's [White Paper; Financial Strength]

Traditional While Paper [Updated 03/19]   https://www.tiaa.org/public/pdf/compliance/tiaa-traditional-white-paper.pdf

General Account Financial Strength [Updates 02/19]   https://www.tiaa.org/public/pdf/performance/retirement/profiles/TIAA_Gen_Act_Fin_Strength.pdf

@GLI2019 , reading through the White Paper, it seems that the term "vintage" hasn't been retired. May be the FAQs got a new writer/editor who took upon himself/herself to use "buckets" instead. "Vintages" are also used in the website data on current rates, e.g. RA   https://www.tiaa.org/public/investment-performance/tiaatraditional/profile?ticker=47933630

YBB
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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

Well, John, lifetime income was always on my bucket list. 

But being an oenophile sounds good. :smileyvery-happy:

Bob

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Participant ○○

Re: Updated TIAA Traditional FAQ's

At this age and stage, it's MY vintage more than the vintages of my Traditional holdings that matters. It's also the fact that I think I get reasonable services from the TIAA company -- perhaps because I have a wealth advisor (for no extra fee).

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Explorer ○○

Re: Updated TIAA Traditional FAQ's


@jjustice wrote:

Buckets??  Vintages made me feel like a sophisticated oenophile.  Now I'm just a member of a bucket brigade?  TIAA never thinks of our feelings!

John


My wife opines that, if they're going to drop "vintages" for a different term, she would have preferred "cookie jars."  Thought it sounded friendlier and produced a more charming mental image of containers than--draw out the pronunciation of the first syllable as you say this--buuuckets.

Furthermore, where longevity issues are concerned, when was the last time anybody ever heard of someone "kicking the cookie jar"?  Or, for that matter, the piggy bank?  Just doesn't happen.  Safety in words.

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Explorer ○○

Re: Updated TIAA Traditional FAQ's

I don't remember anyone here retiring and taking only the TIAA Traditional minimum distributions (did not annuitize), but that was the route I took 18 years ago. A tiny factoid -- my beginning balance is down just 13%. Still pleased with that decision. 

AKA recoveringdprof and rubirosa.
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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

Rubirosa,

That’s the important thing--that you are pleased after a lengthy period of time.

In my view, too little attention is paid to retirement satisfaction.  Such satisfaction can be achieved in a number of ways by different individuals, but satisfaction--not a magical number--is the bottom line.

Cheers.

Bob

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Participant ○○○

Re: Updated TIAA Traditional FAQ's

Bob, sometimes seeing the obvious is very difficult.

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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

Hope your travels are going well, Dede.

Years ago my wife and I spent the X-mas/New Year period in Singapore visiting an old friend on the faculty of NUS.  We had a splendid time!  In some ways, Singapore struck me as what, perhaps, Plato imagined as an ideal Republic.

As for Turkey, we loved our two weeks (5 days sailing on a gulet)--a beautiful country (with great food!).  I'll skip the politics.

Safe travels.

Bob

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Participant ○

Re: Updated TIAA Traditional FAQ's

When I am 105, I'll tell the young whippersnappers that I remember when TIAA Traditional used to have vintages.

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Participant ○○○

Re: Updated TIAA Traditional FAQ's

Bob, Singapore has accomplished a lot with what little they have.  Very impressive.  One has to see it to believe it.

Turkey's Mediterranean and Aegean coasts are incredibly beautiful and rich in history.  You are writing about Blue Voyage (or Blue Journey.)  Cappadocia is definitely worth seeing too.  And then there is Istanbul...

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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

If you reach 105, Oldzey, you have every right to claim "vintage." :smileylol:

Go for it!

Bob

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Participant ○

Re: Updated TIAA Traditional FAQ's

Thanks for the updated information, Yogi!

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Participant ○

Re: Updated TIAA Traditional FAQ's

Thanks for the updated information, Bob!

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Highlighted
Explorer ○○○

Re: Updated TIAA Traditional FAQ's


@GLI2019 wrote:

I don't recall that this update (information clearly runs through 2018) has been previously posted.

Here's  a link to the pdf--

https://www.tiaa.org/public/pdf/TT_FAQ.pdf

Several things caught my attention:

1. It's the first time I have seen TIAA explicitly acknowledge its participation in state guaranty associations (p, 2).  In a conversation with a TIAA principal several years ago, I was told TIAA could not use the information in published materials.  Clearly, this is no longer the case.

2.  The "vintage" nomenclature has been abandoned.  TIAA now uses "interest buckets" (see section 10, p. 4, especially).

3. In boldface, TIAA states the price of liquidity with respect to TIAA Traditional in its many versions (see p. 5).  The price is at least 0.50-0.75--e.g., higher crediting rates for an RA; lower rates for an IRA.

Finally (on p. 7) there appear some interesting  factoids:

"As of year-end 2018, 8271 people age 95 and older, 988 people age 100 and older, and 40 people age 105 and older were still receiving lifetime income from TIAA Traditional." :smileylol:

Bob


First, sure enough, looking at the different Trad Ann interest rates in our accounts, it now mentions the buckets.  Yes, "vintages" had a lot of je ne sais quoi, and "buckets" has... none.

But about the "people vintages", MIL is among the approx 8271, and in a bit more than a year, she'll be among the approx 988.  And she still plays bridge every day, and complains if there aren't enough good bridge players around.  And approximately two years ago, she finally agreed to use a walker.

She's benefiting from COLA'd SS payments and TIAA Trad Annuity payments that have also grown slowly over the years.

RM 

[P.S.  Why does the "approx" symbol show as the "caret" (~), and the "caret" symbol also shows as a "caret" (^) here on M*?]

 

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Frequent Contributor

Re: Updated TIAA Traditional FAQ's

That’s fantastic, RM. All power to your MIL. :smileyhappy:

Bob 

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