Author Topic: Help with 403(b) allocations  (Read 470 times)

Oromont

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Help with 403(b) allocations
« on: December 03, 2018, 11:01:29 AM »
Hello everyone,

We never checked my husband's 403(b) allocation from his work until this week (big mistake). We were so sad to learn how it is allocated:
Guarantee 29.38% TIAA L62680F-8
Equities 18.99% CREF M62680F-6
Real State 5.51% TIAA L62680F-8
Money Market 34%
-CREF M62680F-6
-CREF 483413C-3
Multi Asset 12% TIAA Acc Lfcycle 2035 T4 (TIAA 383413C-5)

He has around 70K on his 403(b).

We have 20 years from now to retirement, and we are OK with market volatility. We have a Vanguard account with 100% stock index funds and have ridden this yearís volatility with no problem at all.

Even though we are new to to understanding all things investments, we know enough to know we need to change these allocations to all or most stocks ASAP.  It is hard to know which stock investments to use from the once offered by his plan though. They all cost so much compared to Vanguard! Any advice would be highly appreciated.

Here is what is available:

Investment/   GROSS / NET EXPENSE RATIO
   
CREF Bond Market Account (R1) (QCBMRX)   0.58%
CREF Equity Index Account (R1) (QCEQRX)   0.51%
CREF Global Equities Account (R1) (QCGLRX)   0.61%
CREF Growth Account (R1) (QCGRRX)   0.53%
CREF Inflation-Linked Bond Account (R1) (QCILRX)   0.52%
CREF Social Choice Account (R1) (QCSCRX)   0.54%
CREF Stock Account (R1) (QCSTRX)   0.58%
TIAA Access TIAA-CREF Bond Plus T4 (Level 4) (--)    1.05% / 1.05%
TIAA Access TIAA-CREF Equity Index T4 (Level 4) (--)    0.80% / 0.80%
TIAA Access TIAA-CREF Growth & Income T4 (Level 4) (--)    1.16% / 1.16%
TIAA Access TIAA-CREF International Equity T4 (Level 4) (--)    1.24% / 1.24%
TIAA Access TIAA-CREF Large-Cap Growth T4 (Level 4) (--)    1.18% / 1.18%
TIAA Access TIAA-CREF Large-Cap Value T4 (Level 4) (--)    1.15% / 1.15%
TIAA Access TIAA-CREF Mid-Cap Growth T4 (Level 4) (--)    1.22% / 1.22%
TIAA Access TIAA-CREF Mid-Cap Value T4 (Level 4) (--)   1.16% / 1.16%
TIAA Access TIAA-CREF Quant Small-Cap Equity T4 (Level 4) (--)    1.16% / 1.16%
TIAA Access TIAA-CREF Real Estate Securities T4 (Level 4) (--)    1.26% / 1.26%
TIAA Access TIAA-CREF Small-Cap Blend Index T4 (Level 4) (--)    0.81% / 0.81%
TIAA Access TIAA-CREF Social Choice Equity T4 (Level 4) (--)    0.93% / 0.93%
TIAA Real Estate Account (QREARX)   0.79%
   


BECABECA

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Re: Help with 403(b) allocations
« Reply #1 on: December 07, 2018, 12:29:30 PM »
I would transfer it all into the TIAA Access TIAA-CREF Equity Index fund. From what I can tell, I think that one basically tries to track the entire US stock market, so it would be very similar to your investments in your nonretirement account. But if you had the ticker symbol for that fund, we could confirm this.

While the CREF funds have lower management fees, when I looked up the tickers for the CREF funds you provided, they all seem to be variable annuities, which I donít really understand and so I stay away from.

So, if this:
TIAA Access TIAA-CREF Equity Index T4 (Level 4) (--)    0.80% / 0.80%
is the same as this fund:
https://www.tiaa.org/public/pdf/ffs/87244W508.pdf
then this is what I would move everything into.

As you get closer to retirement, youíll probably want to add some bonds in.
Again if this:
TIAA Access TIAA-CREF Bond Plus T4 (Level 4) (--)    1.05% / 1.05%
is the same as this fund:
https://www.tiaa.org/public/pdf/ffs/886315506.pdf
then this is what I would use.

You would want to hold bonds only in your retirement account as opposed to your nonretirement account: since they generate taxable income itís more advantageous to hold them in the tax deferred accounts.

Hope this helps! Good luck!
« Last Edit: December 07, 2018, 12:37:46 PM by BECABECA »

RWD

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Re: Help with 403(b) allocations
« Reply #2 on: December 07, 2018, 02:25:39 PM »
Can you ask for better options?