TIAA Traditional has been the majority of my "bond" allocation for a while. My recent divorce and settlement payout from another account has resulted in an odd consequence- too much invested in TIAA Traditional. Due to the illiquid nature of it, I cannot rebalance out of it. In addition, I looked at my average interest rate and it is 4.2% which feels kind of low in today's environment. Current contributions receive 5.5%. I am still probably 15 years away from retirement.
Would it make sense to take a transfer payout annuity now? This would kill 2 birds in that it would allow me to rebalance down to my desired asset allocation, and any portion of it that I wanted to keep in Traditional could be reinvested in the new higher rate vintage. I suppose the risk is that rates go down over the 10 years. I know about the loyalty bonus as well but that feels pretty minor and only applies to lifetime annuities.
Would it make sense to take a transfer payout annuity now? This would kill 2 birds in that it would allow me to rebalance down to my desired asset allocation, and any portion of it that I wanted to keep in Traditional could be reinvested in the new higher rate vintage. I suppose the risk is that rates go down over the 10 years. I know about the loyalty bonus as well but that feels pretty minor and only applies to lifetime annuities.
Statistics: Posted by jmorgans — Tue May 07, 2024 11:00 pm — Replies 1 — Views 127