TIAA Traditional Annuity Strategy: Leverage Multiple Contracts for Maximum ROI

April 30, 2024

Are you a proud member of the higher education community, staring down the barrel of retirement with a TIAA account in hand? Well, buckle up, friends, because Greg Shepard from S&A Financial Services has a golden strategy just for you. We're not talking about dusty old 70/30 asset allocations or those yawn-inducing TIAA bond options. No, we're diving headfirst into TIAA Traditional, a hidden gem waiting to boost your retirement income.

Meet the Dynamic Duo: Imagine a couple, both dedicated to higher education, with retirement on the horizon. They're maxing out the wife's plan because, let's be honest, it offers far better returns than the husband's. Sound familiar? If you're within a decade of retirement, this scenario might hit a little too close to home.

The Bond Bummer: Now, traditionally, you'd fill that "safe" 30% of your portfolio with bonds. But in this case, the bond options were, well, lackluster. Think subpar returns that wouldn't even give your retirement kitty a gentle meow. Enter the game-changer: TIAA Traditional.

The TIAA Traditional Triumph: Specifically, we're talking about those sweet, illiquid contracts offering a luscious 6.25% on new deposits in January 2024. You won't find that kind of consistent love from any bond out there. So, we took a strategic leap: 30% of their funds went straight into a TIAA Traditional contract.

The Magic Mix: Boom! We achieved that perfect 70/30 balance, but with the 30% juiced up by TIAA Traditional's magic elixir. Fast forward a few years before retirement, and this dynamic duo can opt for a seven-year Transfer Payout Annuity (TPA) while still actively working. This allows them to strategically redirect those payments and maximize their returns.

The Liquidity Lowdown: Now, before you dive headfirst into this TIAA treasure chest, remember: illiquid means illiquid. These contracts aren't exactly ATMs. So, plan your strategy wisely. Think of it as a long-term commitment, a retirement nest egg with a hefty interest rate, not a quick cash grab.

The Roth Revelation: Oh, and here's a bonus tip for all you TIAA treasure hunters: don't overlook the Roth 403b option in your plan. Our dynamic duo stumbled upon a forgotten $60,000 in Roth contributions! Knowledge is power, folks, so dig deep and see what hidden gems your TIAA account might hold.

Feeling overwhelmed by the intricacies of your TIAA account or have questions about this TIAA Traditional treasure hunt? Don't fret! Greg Shepard from S&A Financial Services is here to guide you through the maze. Reach out, and let's unlock the full potential of your higher education retirement.

Remember, folks, your golden years deserve golden returns. So, go forth, explore the riches of TIAA Traditional, and let S&A Financial Services be your map to retirement bliss!

Greg Shepard

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*Disclosure* S&A Financial Services, Inc. is a registered investment advisor. Content presented is for informational purposes only and should not be considered as investment advice or as an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Always consult with your tax advisor or attorney regarding your specific situation.