Retirement Plan Portfolio Manager Tiaa Management Fee Breakdown

TIAA's management fees can eat into your retirement savings, but understanding how they work can help you make informed decisions.

TIAA offers a range of investment portfolios with varying expense ratios, which are essentially the management fees you pay for their services.

A typical TIAA portfolio has an expense ratio of around 0.17%, although this can vary depending on the specific fund.

For a $100,000 investment, that's $170 per year in management fees.

A unique perspective: Expense Ratio vs Management Fee

If you're looking for a way to simplify your retirement savings, TIAA's Portfolio Manager is a great option to consider. It's an optional, fee-based service that can help with investment decisions for your retirement savings.

One of the key benefits of this service is that it doesn't require large minimum balances or huge fees. In fact, according to Peter Contini, a financial consultant at TIAA, participants don't need a minimum balance in their retirement account and have significantly lower fees compared to other vendors.

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You can enroll in this service by contacting a TIAA financial consultant or by logging in to the secure site at TIAA.org/RetirementAdvisor. The service is reviewed on a quarterly basis and adjusted as needed to help keep your savings on track with your goals.

The annual fee for this service is 0.20%, which is deducted from your account in quarterly increments. For example, if your average daily account balance is $10,000, the quarterly fee would be $5.

Here's a breakdown of the fee structure:

You can drop the service at any time, and you'll only pay fees for the quarters you were enrolled in the service with no tax penalties. This means you can try it out and see if it's a good fit for you without worrying about any long-term commitments.

TIAA offers a range of financial advisory and management services, each with its own fee schedule.

The Portfolio Advisor Program charges an annual fee that ranges from 0.40% to 1.15% of assets under management, depending on the portfolio value.

For the Portfolio Advisor Program, the annual fee is 1.15% for the first $150,000, 1.00% for $150,000 to $300,000, and so on, decreasing as the portfolio value increases.

Here's a breakdown of the fees for the Portfolio Advisor Program:

TIAA also offers a Private Asset Management Exclusively Fixed-Income Program, which has its own fee schedule.

The annual fee for this program is 0.50% for the first $1,000,000, 0.35% for the next $2,000,000, and so on, decreasing as the portfolio value increases.

TIAA's financial planning services are offered free of charge, but the firm and its affiliates may receive compensation if you invest in one of the products they recommend.

Suggestion: TIAA

TIAA's annuity products are a key part of their investment offerings. The TIAA Traditional Annuity is a fixed annuity contract that returns a minimum interest with a right to annuitize.

This annuity has a specific feature that's worth noting: it returns a minimum interest. The TIAA Real Estate Account, on the other hand, is a variable annuity with investments in commercial real estate, real estate investment trusts, and fixed-income investments.

The TIAA Real Estate Account is considered TIAA's most expensive variable annuity product, with an expense ratio of 87 basis points. This means that a significant portion of the investment returns go towards paying fees.

Broaden your view: Fixed Finance Charge