3 Replies Latest reply on Oct 15, 2010 6:42 PM by JRR

    TIAA Variable Annuity

      Many of you have taken out,a TIAA variable annuity I imagine.  I set mine up to be able to make changes monthly.  Right now Bonds, Inflation liked Bonds and Real Estate are above water.  These are interesting times.  I formerly held a series seven licence and just about everything they told me then does not apply now.  Does anyone want to set up a discussion of these Annuities?
        • Re: TIAA Variable Annuity
          While I understand the comfort of an annuity, I have set my investment strategy to always avoid annuities, except for Social Security that we can't avoid and need as a base anyway. Some "lucky" people may beat the odds and the insurance company, TIAA-CREF in this case. If one needs more control of income and decides to place a portion into annuities, I can live with that. Just remember that inflation is your worst enemy and will greatly erode fixed annuity income.

          Another idea that investment companies push that  troubles me is asset allocation and the implied buy and hold through thick and thin. This is very advantageous for the investment company since it keeps the funds under their control and easier to manage but not necessarily for the investor. I do recognize that TIAA-CREF's mission involves retirement situations and long term horizons and is thus not a trading vehicle.

          I am by no means an investment guru but many years of investing and the associated stress has lead me to another approach. I try to find a good and conservative approach with acceptable returns that keep up with or even beat inflation slightly and stay with it as long as it is going in the right direction. If it fails me, I retreat to principal conserving positions while the market gets it right again. That has taken several years for one of my favorite investments. I do acknowledge the possibility of not getting back into a roaring market as I decide whether to re-commit, but my objective is principal protection and conservative returns.
            • Re: TIAA Variable Annuity
              I have responded to the MyRetirement Community Manager, asking for his help in connecting members with expert advice - I have found the personal financial planners act as a pack and use the same buzz words, and don't really help small investors understand the buzz words such as "investment grade" and "lower quality" stocks and bonds.  I doubt if Morning Star's 4 and 5 stars mean anything, since Moody's or Best's ratings turned out to be self serving lies.  I am hoping this blog will help us members navigate the investment mine field a little better as we gid our way out of the steep declines in our portfolios... 
            • Re: TIAA Variable Annuity
              Would you also be interested in covering equity indexed annuities?

              They are being pushed by companies pretty hard and being a novice to annuities, am looking to find out the pros and cons of these equity indexed annuities and would really appreciate any references on them.