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This page is dedicated to giving you the information you need to make the most of your TIAA-CREF retirement plan.
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It's important that you understand the basis for our recommendations, because you'll be more likely to implement them and stay the course. If you have questions, check our FAQs.
According to our records, current TIAA-CREF plan options are linked here and listed below. Please let us know if your plan has changed, or if there are additions or deletions to these lists.
CREF Variable Annuity Accounts
- WORLD
Global Equities
- U.S./INTERNATIONAL EQUITY
Stock
- U.S. EQUITY
Equity Index
Growth
- BALANCED
Social Choice
- FIXED INCOME
Bond Market
Inflation-Linked Bond
- MONEY MARKET
Money Market
TIAA Variable Annuity Accounts
Retirement Class Mutual Funds
- INTERNATIONAL
International Equity
International Equity Index
- U.S. EQUITY
Equity Index
Growth & Income
Large-Cap Growth
Large-Cap Growth Index
Large-Cap Value
Large-Cap Value Index
Mid-Cap Blend Index
Mid-Cap Growth
Mid-Cap Growth Index
Mid-Cap Value
Mid-Cap Value Index
Small-Cap Blend Index
Small-Cap Equity
Small-Cap Growth Index
Small-Cap Value Index
Social Choice Equity
S & P 500 Index
- FIXED INCOME
Bond
Bond Plus II
High-Yield II
Inflation-Linked Bond
Short-Term Bond II
- MONEY MARKET
Money Market
- ASSET ALLOCATION
Asset Allocation II
- REAL ESTATE
Real Estate Securities
- LIFECYCLE
Lifecycle 2010 - 2040 (7 funds)
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Aggressive Portfolio
When you want to take out all the stops and "go for it," this is the portfolio for you. Equally at home in the U.S. and abroad, this combination is a favorite of young investors with plenty of time before retirement. It's also suited for those on a fast track who want or need all the speed and distance they can get from their investments. Because 100 percent of the portfolio is in equities, the only buffer against the slings and arrows of the market is time. But if you've got the time, this is the way to go. Our expected annual return for this portfolio is 10 to 13 percent, with the likely one year loss of 30 to 40 percent.
Moderate Portfolio
This combination is a fine choice for many employees and especially for long-term investors. Its 60 percent weighting in equities gives it plenty of power for stock market growth, while the 40 percent in fixed-income provides stability and safety during declines in the market. This portfolio is most suitable for investors with five or more years until they will need their money. Our expected annual return for this portfolio is 7 to 10 percent, with the likely one year loss of 15 to 25 percent.
Conservative Portfolio
This combination stresses safety, with a mix of 40 percent equities and 60 percent fixed-income investments. It is most suitable for investors who consider themselves conservative, who are close to or past the age of retirement or who, for whatever reason, care more about holding onto their money than making it grow. Our expected annual return for this portfolio is 6 to 9 percent, with the likely one year loss of 5 to 15 percent.
Investment Options
The first basic list contains only six equity options: a stock fund (large blend), a global equities fund, a growth fund (large growth), an equity index fund (large blend), a "social choice" fund (large blend) and a real estate fund.
This leaves investors no way to get proper diversification. Everything is overweighted in large-cap U.S. stocks. Because there is no international fund, we must get limited international exposure throughnthe global equities fund, which we believe has a substantial position in large-cap U.S. stocks as well as international ones. Of these options, we believe the equity index fund is the least expensive and most inclusive way to get U.S. equity exposure. We believe the real estate fund is worthy of a small allocation for additional diversification.
For the fixed-income part of the allocation, we would use a 50/50 combination of the CREF Bond Market fund, which we believe will perform similarly to a total bond market index, and the CREF Inflation-Linked Bond Fund, which we believe will perform similarly to a short-term corporate bond fund.
On the equity side, this leaves us with almost no exposure to either small-cap equities or value equities and very limited exposure to international equities. Employees who follow this allocation should use their IRA and taxable accounts to beef up their exposure to those areas
The second and longer TIAA-CREF list, which is gradually being introduced into many plans, contains 18 equity choices, including nine index funds. Although international small-cap stocks and international value stocks are still neglected, this is a big improvement. Because there's only one international fund, we limited international investments to 30 percent. Because there's no U.S. small-cap value fund, we substituted the mid-cap value fund.
For the fixed-income part of the allocation, our recommendation is the same as in the basic CREF plan shown above.
Employees who follow this allocation should use their IRA and taxable accounts to beef up their exposure to U.S. small-cap value stocks, international small-cap stocks and international value stocks.
TIAA Retirement Class Mutual Funds
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Disclaimer:
This information is provided by Merriman Berkman Next, Inc., a
registered investment advisor, and is believed to be from reliable
sources, but no guarantee is made as to accuracy or completeness. The
investment securities and strategies discussed are not suitable for all
investors. Recommendations are of a general nature, not based on
knowledge of any individual's specific needs or circumstances, and
there is no intent to provide individual investment advisory,
supervisory or management services. Unless otherwise noted, all
reported or projected results (1) assume reinvestment of interest and
dividends; (2) are net of any applicable management fees and
transaction costs; and (3) do not reflect any effect of taxes. Past
returns, whether actual or hypothetical, are not indicative of future
results, which will be different from those of the past. Merriman Berkman Next, Inc. is not an authorized representative of TIAA-CREF and its retirement plan.
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