Until you get the specific plan information, here's an example of a few schools' handouts:
https://www.gvsu.edu/cms4/asset/614589D ... arison.pdf
https://www.lclark.edu/live/files/26994 ... on-faqspdf
https://www.mccc.edu/~gardnerj/Attachme ... ntFAQs.pdf
You might wish to ask your wife whether she feels well-informed about her existing TIAA account. Some customers find them hard to understand, with opaque rules. Others love the access to bond-like funds that cannot decline in value when BND (for example) goes down 12% in one year (2022.) But there's no arguing that TIAA, despite its size and market penetration, can be confusing.
Returning to your OP question, the most important difference between RC and RCP is that in RC, withdrawals/exchanges from TIAA Traditional requires annual portions spread evenly over eight years. That bothers some clients. Others love the extra daily interest rate so much that they are not troubled by restrictions on a long-term, retirement, account.
Especially if it's a "large" school, it's worth finding out if the RC/RCP plan has, perhaps, R4-units for the CREF Variable Annuities. This incredibly low ER puts them almost in the Vanguard range, except for the most hard-core Bogleheads.
However, not every customer uses either TIAA Traditional or the CREF VA Accounts. It's also important to be sure what the new investment menu actually is. Some schools' Investment Committees are so afraid of Fiduciary Duty lawsuits that they are pushing people to accept fully managed plans instead of self-directed plans.
https://www.gvsu.edu/cms4/asset/614589D ... arison.pdf
https://www.lclark.edu/live/files/26994 ... on-faqspdf
https://www.mccc.edu/~gardnerj/Attachme ... ntFAQs.pdf
You might wish to ask your wife whether she feels well-informed about her existing TIAA account. Some customers find them hard to understand, with opaque rules. Others love the access to bond-like funds that cannot decline in value when BND (for example) goes down 12% in one year (2022.) But there's no arguing that TIAA, despite its size and market penetration, can be confusing.
Returning to your OP question, the most important difference between RC and RCP is that in RC, withdrawals/exchanges from TIAA Traditional requires annual portions spread evenly over eight years. That bothers some clients. Others love the extra daily interest rate so much that they are not troubled by restrictions on a long-term, retirement, account.
Especially if it's a "large" school, it's worth finding out if the RC/RCP plan has, perhaps, R4-units for the CREF Variable Annuities. This incredibly low ER puts them almost in the Vanguard range, except for the most hard-core Bogleheads.
However, not every customer uses either TIAA Traditional or the CREF VA Accounts. It's also important to be sure what the new investment menu actually is. Some schools' Investment Committees are so afraid of Fiduciary Duty lawsuits that they are pushing people to accept fully managed plans instead of self-directed plans.
Statistics: Posted by crefwatch — Thu Jul 18, 2024 12:09 pm — Replies 4 — Views 201