TIAA 403(b) best options?

[put me in coach]

I'm hoping to get some pointers in the right direction. My employer offers a 403(b) through TIAA. I was told by a TIAA rep that I cannot move my current funds while I'm employed with current employer and I plan to be with my employer for a while. So I'd like to make sure my funds are in the right investments or best investments TIAA has to offer. I'd like these funds to be in more of a "set it and forget it" investment and I'm wondering if there is something else to consider besides a target date investment. I'm 36-years old. Any other pointers are also welcome!

Here is my retirement portfolio:
Fidelity - TRGT DATE 2050 ($40k)
Fidelity ROTH - Stocks ($6k)
TIAA 403(b) TDA QCSCRX ($17k)
TIAA 403(b) DC QCSCRX ($5k)

[EricEng]

I'm hoping to get some pointers in the right direction. My employer offers a 403(b) through TIAA. I was told by a TIAA rep that I cannot move my current funds while I'm employed with current employer and I plan to be with my employer for a while.

What the rep meant, is you can't migrate the funds to another account most likely.  You should be able to change investment allocation while still employed.

Example:
My current employer's 401k funds are stuck, I can not roll them over to an IRA or different 401k without doing a taxable withdrawl.
I can however rebalance them from sp500 into other things.

As for your question, target date funds are usually terrible in they are way to conservative and heavy on bonds when you are 10+ years from retirement.

[maizefolk]

Are the Fidelity funds inside your 403(b)? If so be careful to check, often when employers negotiate for 3rd party funds in a TIAA plan, TIAA gets to charge an extra expense fee on top of the regular one for the fund.

I'd recommend against TIAA's target date funds as they have significantly higher expense ratios than the component funds. Over the years that adds up. You can put the same funding into TIEIX (TIAA's internal stock index fund, ER shows up at 0.05% in my account), TCIEX (TIAA's internal international stock index fund, ER also shows up at 0.05% in my account), and if you really feel like it a little QCBMIX (bond fund, ER = 0.26%). Look in every few years and rebalance if you feel so moved. You've just replicated TIAA's target date funds at significantly lower cost.

[EvenSteven]

Are the Fidelity funds inside your 403(b)? If so be careful to check, often when employers negotiate for 3rd party funds in a TIAA plan, TIAA gets to charge an extra expense fee on top of the regular one for the fund.

I'd recommend against TIAA's target date funds as they have significantly higher expense ratios than the component funds. Over the years that adds up. You can put the same funding into TIEIX (TIAA's internal stock index fund, ER shows up at 0.05% in my account), TCIEX (TIAA's internal international stock index fund, ER also shows up at 0.05% in my account), and if you really feel like it a little QCBMIX (bond fund, ER = 0.26%). Look in every few years and rebalance if you feel so moved. You've just replicated TIAA's target date funds at significantly lower cost.

This is good advice. You might get more specific feedback if you could provide the fund options and their expense ratios, as TIAA plans can vary greatly between employers. I also have a 403(b) at TIAA, and the way my employer does it is we get access to some low cost Vanguard funds, but they add a 0.5% wrap fee to the whole thing (even if using expensive TIAA funds).

[svosavvy]

We have a 403(b) at TIAA (not voluntarily).  My wife works for a university hospital and the employer matches through this vehicle.  We are in the same boat the money has to stay under the TIAA umbrella while employed there.  What I found was a way around this by requesting the "self directed brokerage" option.  Just know this is the nuclear option and you will get hand holding daddy knows best "advice" from HR, TIAA, ad nauseam...  Warnings that you will lose all your money this way etc...  They hate it and will fight you tooth and nail.  We did this 12 years ago and it was a dog fight, but, worth it.  Our contribution and the employer match go into the TIAA account then are directed to the "brokerage" which for our program is operated by federated/pershing.  We then invest in the customary Vanguard products in the brokerage and manually rebalance from time to time.  I know all these employer sponsored plans are different, but, that is what we do.  You may have a "self directed brokerage" available to you.  Don't expect them to let you know.  They usually bury this info about 3/4 of the way into their prospectus.  Hope it helps. GL.

[svosavvy]

Haha, you know you have a shitty company when all of your customers are there involuntarily.

[maizefolk]

I also have a 403(b) at TIAA, and the way my employer does it is we get access to some low cost Vanguard funds, but they add a 0.5% wrap fee to the whole thing (even if using expensive TIAA funds).

Ugh. While I was at my last employer they went through the transition to the same style of plan it sounds like you have.

"We heard your complaints about the high expense ratios of TIAA funds, so we negotiated access to low cost vanguard funds within the plan. All it cost us was agreeing to an extra 0.5% annal fee on top of all of your investments in Vanguard OR TIAA funds."