🔍
TIAA CREF 👨🏫 Understanding My Plan Options 🤔 - YouTube
Channel: Jumpstart YOUniversity
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tiaa-cref one of the largest retirement
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solutions providers out there with
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plenty of plan participants and you may
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be one of those that are a little
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confused about your benefits so today
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I'll be walking you through some of the
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things that you should be aware of to
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make things simpler get the pen and
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paper out so let's go ahead and say what
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is tiaa-cref tiaa-cref is going to stand
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for teachers insurance annuity
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association college college retirement
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equities fund it's a mouthful and they
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rebranded it to just TIAA because way
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back in the day Andrew Carnegie started
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this back in the early 1900s I believe
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and then came the insurance part of it
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that allowed you to basically take your
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money give it to CREF and they would
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invest it for you in an annuity right
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that's the subject of another podcast
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we'll talk about annuities later but
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that's how that big gargantuan
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organization that now manages over a
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trillion assets with millions of per
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plant participants both active and
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retirement kind of spanning you know
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education medicine research government
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entities in that nature so they're
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they're a huge player in the market just
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about anything you need for retirement
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solutions they should be able to do
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there's probably gonna be basically
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three options that you have and this is
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kind of falls into the section of what's
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in it for me dominate when you're
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thinking about how you can direct your
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funds right so you're gonna take you
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know some of your salary you're gonna be
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putting it towards retirement right and
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tiaa-cref or let's just call them TIAA
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TIA
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so Tia will allow you to this is my own
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acronym by the way sia will allow you to
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do it let's say one of three ways the
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first is the traditional
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self-directed 401k and or 403b
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right you're going to take that salary
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or deferral it's gonna accumulate in
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account you're going to pick from a menu
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of funds and it's pretty much
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do-it-yourself you know you're gonna get
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the returns of whatever you chose they
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also have like a hybrid option that's
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kind of do-it-yourself
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tunne on the manager which is you pick a
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target date fun and you're gonna retire
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in 2050 you put all your money in the
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2050 fund and you just let them do it
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right and then the last option is what I
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would call the annuity option right so
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this is where you can do a tax sheltered
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annuity and you basically give your
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money like the CREF option earlier that
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I talked about and they will invest it
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over time and you're gonna get a fixed
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amount no matter what the market does
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and that comes in a couple of different
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flavors whether it be a fixed annuity or
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a variable annuity looks like I'm
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definitely have to do a video on
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annuities because I keep on mentioning
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that term so there's really three
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options and they're not mutually
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exclusive you can combine them depending
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on what you need which I would always
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say there's your best bets gonna get two
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to be in front of a professional that
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can give you an objective opinion and
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craft a plan for you even if you're
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inside or a retirement plan like TIA so
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let's jump into a video that I found on
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YouTube about some of their rebranding
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let's call it and I'll point out some
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things that that look important there
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and I'll also point out some things on
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their website that I think you should
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pay attention to and possibly you want
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to think about when you're crafting your
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retirement plan let's go your account
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statement plays an important role
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so we've enhanced it with you in mind
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now it's easier to use your statement as
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a planning tool for your retirement
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savings okay so let's just kind of talk
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about this for just a second this is a
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pretty standard account statement
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brokers custodians services like this
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the financial services industry has a
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minimum that you send out statements
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quarterly I would definitely advise you
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logging on to your account more than
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quarterly and just what your ending
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balance is and what the rate of return
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is all those things are kind of up for
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negotiation about what is put on those
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reports but I would say this is you know
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kind of standard at a bare minimum type
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of things when it comes to the what is
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called kyc or know your customer know
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your client requirements developed by
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the industry you told us what's most
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important
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how much you have and how your portfolio
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is performing you'll find this right up
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front before diving into the details
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take a quick look to see how your
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retirement income might change if you so
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this is just the result of a calculator
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so that you won't have to do the work
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letting you know the scalability of what
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your increases may do to your retirement
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fun obviously it's kind of based on
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probably historical rates of the funds
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that you've chosen
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you know you probably always just want
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to run that past someone these are these
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are projections and should not at all be
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used as the concrete pouring the cement
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for your retirement plantings
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looking further into your account
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information you'll still see how your
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portfolio is alligator okay so what you
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see here and this is probably gonna be
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in my last comment is those three ways
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that I showed you earlier right so the
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guaranteed would be the last way that'd
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be that that TSA or the annuity option
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the equities that would be probably I
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would say the mutual fund option that I
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gave you as number one and then the
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multi asset class is probably going to
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be that target date fund so as you can
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see they're not mutually exclusive you
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can you can use all of those in your
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retirement plan I can give you some
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pointers on whether they're a little
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high on the mutual fund side and then
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what I'll do is I'll also link a video
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on how to kind of pick mutual funds at
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least from some broad 30,000 foot
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parameters here so okay so one thing to
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say about this it looks like you can
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even put your plan number in there so
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that's kind of cool and Morningstar is
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an independent service that rates mutual
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funds so you can looks like they
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consolidate the information here for you
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which is great but I would say this
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there's 20 plus mutual funds here your
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plan probably does not have all of them
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which is pretty normal and that's okay
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it's going to be a subset of that and
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you can always just kind of look through
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here I'll say mutual funds that are in
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this range of fees expense ratios are
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pretty high but maybe the performance
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warrants that so what you would want to
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do is take something like this tii rx
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that I have highlighted here
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you would want to see what is the
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benchmark what are they comparing this
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fund what is the manager trying to
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achieve as far as the objective of this
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fund and let's see you usually get this
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other prospectus let's see if they do it
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in the fun facts yes they're trying to
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mirror the S&P so you can easily see
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this amongst its peers you don't have
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much to choose from because you your
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captive to this plan but mutual fund
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picking 101 would be okay you're trying
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to mirror the S&P 500 index what did the
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S&P 500 index do last year three years
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ago five years what are those track
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records then compare the mutual funds
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track record to it you can kind of see
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whether or not it's doing a good job and
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you can basically look at the return of
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an ETF or index fund has as compared to
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this mutual fund to see if if the fees
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are worth it are justifiable that's been
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an overview of tiaa-cref or TIA
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as I've called them in this video leave
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a comment below if you have any
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questions I'll get to that as soon as I
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can I might even do a video on it
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subscribe to the channel if you want
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more personal development financial
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literacy and economic empowerment topics
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we'll talk to you later
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