By Johnny DeBiase, CFA
As you approach retirement, it is essential to consider how best to manage your retirement assets. For many college professors, these assets are tied to TIAA, a leading provider in higher education retirement plans such as 403(b) plans. Founded over a century ago, TIAA has built a reputation for serving the financial needs of those in academia and other non-profit fields. But what happens to your TIAA retirement assets once you retire? Let’s explore your options.
Understanding Your TIAA Retirement Assets
The first step in planning for your retirement is understanding what you have. Over your career, you may have worked at multiple institutions, each with its own retirement plan under the TIAA umbrella. It’s not uncommon for professors to accumulate multiple accounts, each with different investment options and rules. Therefore, a comprehensive review of your TIAA accounts is critical before making any decisions.
The Options: What Can You Do With Your TIAA Assets?
Once you’ve taken stock of your retirement accounts, you have several options to consider. Each option comes with its own set of pros and cons, and the best choice will depend on your financial goals, the specifics of your TIAA plan, and your comfort level with managing your own investments.
1. Roll Over Some or All of Your Assets Immediately
One option is to roll over some or all of your TIAA assets into another retirement account, such as an IRA. This option provides flexibility in choosing investments outside the TIAA platform, which is particularly appealing if you find the investment options within TIAA limited. Rolling over to an IRA could give you access to a broader range of investment vehicles, including stocks, bonds, and mutual funds.
Special consideration must be taken with accounts invested in TIAA Traditional, a guaranteed annuity product unique to TIAA. Unlike other investments, TIAA Traditional cannot be rolled over as a lump sum. Instead, it must be rolled over in ten equal installments over nine years. A financial advisor can help you determine how best to plan for rolling over your investment in TIAA Traditional.
2. Roll Over Assets Over Time
If you’re not ready to make a full transition out of TIAA or are currently still employed, you can choose to roll over your assets gradually. This approach allows you to continue working while transferring assets from old TIAA plans, gaining access to a broader investment universe with an IRA.
Assets that you don’t want to move or can’t move can be managed by certain advisors without requiring you to move them out of the TIAA platform. This can be an ideal solution if you prefer to keep your assets with TIAA but want professional management to keep your investments aligned with your retirement goals. These advisors can also help manage your TIAA assets in conjunction with other outside assets, providing a holistic approach to your retirement planning.
3. Leave Your Assets at TIAA
Another option is to leave your assets with TIAA. For many, this is the simplest and most straightforward option, especially if you are comfortable choosing your own investments and calling the TIAA customer service phone number when you need assistance.
Leaving your assets with TIAA might also make sense if you want to remain invested in TIAA Traditional or if you’re satisfied with the investment options provided by TIAA and the associated fees they charge.
Final Thoughts: Professional Guidance
As a college professor, you’ve dedicated your career to educating others. Now, as you approach retirement, it’s time to focus on pursuing your ideal financial future. Understanding your TIAA retirement assets and knowing your options are crucial steps in this journey.
Whether you choose to roll over your assets, leave them with TIAA, or gradually transition to a different investment strategy, the most important thing is to make informed decisions that align with your retirement goals. By taking the time to review your options and consulting with knowledgeable advisors, you can confidently navigate this next phase of your life and enjoy the retirement you’ve earned.
That’s where Gould Asset Management can help. Each client comes to our firm with unique circumstances. Age, assets, investment experience, life and financial goals, and risk tolerance are just a few factors. Based on careful consideration, our team crafts unique portfolios for each client.
To schedule a meeting, call (909) 445-1291, email contact@gouldasset.com, or request a meeting on our website.
About Johnny
Johnny DeBiase is Partner and Senior Portfolio Manager at Gould Asset Management, an independent registered investment adviser based in Claremont, California. The firm manages customized portfolios on behalf of individuals, families, and nonprofits, and offers a range of services, including retirement planning, charitable giving strategies, and values-based investment options. As fiduciaries, they always put their clients’ interests first while providing a culture of superior personal service.
With responsibilities including portfolio management, market and investment research, and client relationship management, Johnny enjoys how investing combines numbers and finance with an element of human psychology. A big part of his job involves breaking down complex topics and helping clients tune out the noise to see the big picture. He’s a firm believer that clients come to Gould for the investment advice and stay for the exceptional client service.
Johnny obtained his bachelor’s degree in economics with a minor in chemistry from the University of North Florida and his master’s degree in finance from the Robert Day School of Economics and Finance at Claremont McKenna College. He also holds the Chartered Financial Analyst® (CFA®) designation and is a member of the CFA Institute. In his free time, he enjoys hiking with his wife, Jill, playing with his dogs, Millie and Lola, cooking, practicing yoga, and reading fantasy and sci-fi books. To learn more about Johnny, connect with him on LinkedIn.