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Hi All,
As part of my new job, I have a retirement plan through TIAA-CREF. I see they have their Traditional Annuity which is currently paying a rate of 4% with a minimum rate of 3%. Would this be a good substitute for bonds? The restrictions are that I cannot take any money out for 10 years once it is invested in the plan for employer money and for any money I put in through my 403b I can take the money out at any time. For employer money I can take a lump sum withdrawal for 180 days after termination of employment.
I realize most people don't really recommend annuities, but with current yields so low, I'm wonder if putting at least some of my money into this fund would help diversify me further while keeping the rest of the money in funds such as their S&P 500 Index. The S&P 500 Fund is a bit more expensive than Vanguard, but still not terrible. Thanks for your opinions.
Also, I've heard that TIAA-CREF has had some issues in the past. Are they really all that bad? The performance of their S&P 500 Index was at one point 4% better than Vanguards S&P 500 Index fund and it is currently 1% lower than Vanguards S&P 500 Index over a 10 year period.
As part of my new job, I have a retirement plan through TIAA-CREF. I see they have their Traditional Annuity which is currently paying a rate of 4% with a minimum rate of 3%. Would this be a good substitute for bonds? The restrictions are that I cannot take any money out for 10 years once it is invested in the plan for employer money and for any money I put in through my 403b I can take the money out at any time. For employer money I can take a lump sum withdrawal for 180 days after termination of employment.
I realize most people don't really recommend annuities, but with current yields so low, I'm wonder if putting at least some of my money into this fund would help diversify me further while keeping the rest of the money in funds such as their S&P 500 Index. The S&P 500 Fund is a bit more expensive than Vanguard, but still not terrible. Thanks for your opinions.
Also, I've heard that TIAA-CREF has had some issues in the past. Are they really all that bad? The performance of their S&P 500 Index was at one point 4% better than Vanguards S&P 500 Index fund and it is currently 1% lower than Vanguards S&P 500 Index over a 10 year period.