Invest In Your Legacy — TIAA (2024)

FAQs

Is TIAA traditional a good investment? ›

Yes. Contributing to TIAA Traditional consistently over your working career, instead of waiting until you are about to retire, could help increase the amount of your lifetime income.

If your plan allows it, you can withdraw money online. If an online withdrawal is not an option, call us at 800-842-2252. Please be sure to contact us two to three months before you must receive your withdrawal to ensure you receive funds by the required deadline.

It's generally better to wait to collect Social Security until your "full retirement age" of 66 or 67, determined by your birthdate. If you claim earlier, your payment will be lower. If you hold off to age 70, you can usually maximize your monthly payments.

When we talk about lifetime income at TIAA, we are referring to payments in retirement that can help cover essential living expenses. Just as you may have built a diversified savings plan for retirement, you can apply the same strategy to pay yourself in retirement.

Monthly Payout On $1.5 Million

Lifetime annuity with fixed return: A $1.5 million annuity from Charles Schwab, purchased 30 years in advance and structured as a lifetime annuity with a fixed return, could yield approximately $29,624 per month during retirement.

Tradition, its flagship product, offers the highest new money payout in more than 20 years. NEW YORK, Dec. 19, 2023 /PRNewswire/ — Participants electing lifetime income from TIAA Traditional, TIAA's flagship annuity, in January 2024 will receive a historically high payout rate of 8.2%.

Like checking accounts, savings accounts are FDIC-insured, meaning the bank insures your money up to $250,000.

If you transfer out of TIAA Traditional and transfer back in under the same contract within 120 days, the amount transferred in, up to the total amount transferred out, will be credited with the same interest rates that would have applied if the transfer out had not taken place.

Even if your plan doesn't allow cash distributions, you can withdraw your entire retirement savings if your TIAA Traditional Account value does not exceed $2,000 and your overall account balance is below a limit set by your employer's plan (either $1,000 or $5,000).

What Is the Rule of 55? Under the terms of this rule, you can withdraw funds from your current job's 401(k) or 403(b) plan with no 10% tax penalty if you leave that job in or after the year you turn 55. (Qualified public safety workers can start even earlier, at 50.)

What is the 3 rule for retirement? ›

In some cases, it can decline for months or even years. As a result, some retirees like to use a 3 percent rule instead to reduce their risk further. A 3 percent withdrawal rate works better with larger portfolios. For instance, using the above numbers, a 3 percent rule would mean withdrawing just $22,500 per year.

What is the 7 Percent Rule? In contrast to the more conservative 4% rule, the 7 percent rule suggests retirees can withdraw 7% of their total retirement corpus in the first year of retirement, with subsequent annual adjustments for inflation.

It has conservative investments that will not lead to volatility in income, but is also invested in a sophisticated manner for higher investment returns. There are other investment options within TIAA-CREF that demonstrate innovation in providing better ways to invest retirement savings.

The average account balance was $349,786 with 64 percent of the balance invested in equities. The mean employee contribution to these plans was 7.5 percent of salaries while the average employer contribution was 8.9 percent. New contributions were also almost 59 percent invested in equities.

TIAA Bank also benefits from being a privately held subsidiary of TIAA, one of only three insurance groups in the U.S. that hold the highest-possible rating from three of the four leading insurance company rating agencies for its stability, claims- paying ability and overall financial strength.

For its stability, claims-paying ability and overall financial strength, Teachers Insurance and Annuity Association of America (TIAA) is a member of one of only three insurance groups in the United States to currently hold the highest rating available to U.S. insurers from three of the four leading insurance company ...

TIAA Bank has a decades-long record of consistent profitability, built on a strong capital base and conservative approach to risk-management.